Following rejection by the US House of Representatives of the proposed $700 billion bailout of many of the nation’s leading financial institutions on September 29, the Senate Wednesday night by a vote of 74-25 passed a modified bill that would authorize the government to buy mortgage-related and other assets from institutions that have led to economic instability. The House of Representatives is expected to vote on the Emergency Economic Stabilization Act of 2008 this Friday.
The revised legislation, which has been attached to a bill addressing renewable energy tax incentives, includes several new tax provisions, such as tax extensions for businesses and families, and a limitation on the alternative minimum tax. Other new provisions include an increase in the Federal Deposit Insurance Corp. cap from $100,000 to $250,000, natural disaster relief for individuals in Texas, Louisiana and the Midwest and parity for insurance coverage of mental health treatment.
http://finance.senate.gov/press/Bpress/2008press/prb100108a.pdf
http://www.cnn.com/2008/POLITICS/10/02/congress.bailout/index.html
Tags: Emergency Economic Stabilization Act, Financial Bailout, Financial Rescue Plan
