The Real Deal Miami

Senate passes $700B bailout bill

October 02, 2008 10:32AM

A bipartisan group of senators passed a $700 billion financial rescue bill last night. The bill, like the version rejected by the House of Representatives on Monday, calls for the government to buy up financial institutions’ debt, but the revised bill passed by the Senate also increases FDIC insurance to $250,000 from $100,000 and includes renewable energy tax breaks, deductions of state and local sales taxes on individuals’ tax returns, and other tax incentives. The result is a more expensive bill because the tax breaks add to the cost of the bailout, but one that may be more likely to pass the House. The House is expected to vote on the revised bill by Friday. [NYT] and [GlobeSt]