by bintangkecil on Friday, October 3rd, 2008 | Business, News

The House passed a $700 billion bailout of the financial services industry Friday, reversing itself after members who voted to kill the measure earlier in the week came around to a Senate version that offered more protection for individual investors and small businesses.

Stocks were up sharply in anticipation that the measure could help thaw frozen credit markets.

After a week of reversals and intense lobbying, the measure ended up passing comfortably by a vote of 263-171. After seeing the bill go down to defeat Monday, House Speaker Nancy Pelosi, D-Calif., had said she would not let it come up for a vote Friday unless it was clear that it would pass.

White House spokesman Tony Fratto said President Bush would “like to sign it as quickly as possible — as soon as they get it to us.” House staffers said it would be sent to the White House as early as Friday afternoon for Bush’s signature.

Under the plan, the Treasury Department would be authorized to spend as much as $700 billion to buy bad mortgage-related securities, which have slowed and, in some cases, dried up the flow of credit.

The Senate dramatically changed the measure Wednesday, adding an additional $110 billion in additional tax breaks, incentives and other measures, including an expansion of coverage of individual bank deposits by the Federal Deposit Insurance Corp.

Read the full story from MSNBC …

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House leaders were cautiously optimistic before the vote, but uncertainty over its fate lingered until the last minute. Many members said the bill wasn’t perfect but that action was needed to get the flow of credit going again and to help taxpayers.

House approves historic bailout package - Marketwatch

“The bottom line, the market is set up for a positive vote from the House, and we expect part of the market’s move up is in response to that,” said Fred Dickson, market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

Bank deal, bailout vote propel stock gains - The Reuters

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