The Real Deal New York

As Congress rejected the Bush administration’s proposed $700 billion bailout yesterday, the Federal Reserve’s immediate response to the financial crisis was to issue more money, providing $150 billion to banks through an emergency lending program and $330 billion through swap lines with foreign central banks. The Treasury Department said it will begin buying up some mortgage-backed securities anyway because it was granted that authority in the housing bill passed this summer. The Bush administration hopes to bring the bailout proposal back to the table later this week, with amendments appealing to the House Republicans who opposed it.