Senate easily passes modified $700 billion market bailout

By By The Associated Press

Story Created: Oct 1, 2008 at 8:36 PM EST

Story Updated: Oct 1, 2008 at 11:10 PM EST

WASHINGTON (AP) - A bailout for the financial industry has cleared the Senate and backers hope to push it through the House by Friday. It passed by a wide margin with bipartisan support.

In the final vote, 40 Democrats, 33 Republicans and independent Joe Lieberman of Connecticut voted "yes." Nine Democrats, 15 Republicans and independent Senator Bernie Sanders of Vermont voted "no." John McCain and Barack Obama cast "aye" votes.

The rescue package would allow the government to spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions.

The legislation has extra tax breaks and other sweeteners for holdouts in the House. Even as the Senate voted, House leaders were hunting for the 12 votes they would need to turn around Monday's defeat.

Critics on the right and left say the rescue plan is a giveaway for Wall Street, and has little obvious direct benefit for ordinary Americans.

(Copyright 2008 by The Associated Press. All Rights Reserved.)
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