Senate passes $700 billion Wall Street deal
One house of the US Congress has now approved the Treasury’s deal, but it could still fail
WASHINGTON, DC – The US Senate has passed a revised version of the Treasury’s $700 billion (£380 billion) bail-out plan. Both political parties in the upper house of Congress strongly supported the deal in a vote last night that President George W Bush said was “essential to the financial security of every American”.
To placate opponents of the plan, the redrawn proposal now includes $110 billion in tax breaks – with an emphasis on small businesses, and an increase in depositor protection from $100,000 to $250,000.
Senate leaders and both presidential candidates (who suspended electioneering for the vote) conspicuously avoided describing Treasury secretary Henry Paulson’s plan as a bail-out for Wall Street banks.
Whether the bill will pass through the House of Representatives after its narrow rejection on Monday depends on Republican whips’ ability to coerce rebels into backing the bill, which is widely seen as un-American and impolitic due to its unpopularity with anti-Wall Street blue-collar workers whose houses are in danger of repossession.
The bill is also unpopular among Democrats. Despite their having voted largely in favour of the bill at its last reading, it is uncertain how many more will be swayed by this revised offering. Many voted out similar tax cuts earlier this year, citing government failure to balance its books.
The House of Representatives will vote again on Friday.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Report once: will Esma’s €1bn reforms deliver the full picture?
Critics say plan to merge three reporting regimes will see scant returns, and won’t mesh with single-sided reporting
CFTC accused of ‘double standards’ on compute futures
Duffy questions ‘long review’ of CME’s contract when Kalshi already offers similar product
Europe’s banks can’t agree on how to fix the output floor
Some want market risk excluded, while others push for greater savings from credit modelling
SEC gunning to take over Cat in 2027
Regulator's bid for control of market surveillance apparatus splits industry participants
FCMs back CFTC proposal granting opt-out from CME oversight
New rules aim to address conflicts of interests at vertically integrated exchange groups
Banks urge Singapore to relax exposure limit on crypto assets
Lower capital for tokenisation and stablecoins welcomed, but cap will curb bank involvement for now
Larger EU players move slower on clearing relocation, says Esma
Active accounts rule driving smaller firms onshore; regulator ready for bigger role if lawmakers want
BoE’s crisis lending plan hits buffers
Scepticism greets regulator’s proposal to increase releasable leverage capital buffers