Bailout passes House 263-171
WASHINGTON -- In a stunning reversal the House of Representatives Friday voted 263-171 to pass an historic $700 billion measure to rescue the financial sector, acting just days after initially defeating the plan. President Bush immediately signed the bill into law.
Fifty-eight lawmakers who opposed the bill — the biggest government market intervention since the Great Depression — when it was defeated Monday by a 228-205 vote reversed their position and voted "yea." The chamber burst into applause when the measure topped the 218-vote hurdle needed for passage.
The Senate approved the measure Wednesday 74-25.
"By coming together on this legislation we have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country," Bush said at the White House after the bill was approved.
But he warned that "it will take some time for this legislation to have full impact on our economy ... it will require a careful analysis and deliberation ... it cannot be accomplished overnight."
The president thanked lawmakers for their bipartisan effort.
"Our eye now is to the future, to shine the bright light of accountability on the financial markets so it doesn't happen again," said Speaker Nancy Pelosi, D-Calif. "Fortunately we had a strong bipartisan vote, but we knew we'd be strong enough to pass the bill today."
She promised to hold hearings into why the financial crisis happened.
"Nobody in east Tennessee hates more than me" the fact I'm changing my vote, said Rep. Zack Wamp, R-Tenn., explaining he had cast a blue collar vote against the bill Monday to protect his workers from bailing out Wall Street.
On Friday, Wamp said he would cast a "red, white and blue collar vote with my hand over my heart ... things are really bad, we don't have any choice."
The legislation will allow the Treasury Secretary to buy troubled mortgage-backed securities and other assets to help unlock credit markets.
The plan is designed to free up capital so financial firms can increase lending, improve confidence and help place a floor under asset prices, including home prices.
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