US House of Representatives passes bailout package

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Source: CCTV.com | 10-04-2008 11:34

The US House of Representatives has approved legislation allowing the Treasury to buy up to 700-billion US dollars in bad debt from the nation's banks.

U.S.House of Representatives Speaker Nancy Pelosi (front L)  presents the financial rescue package bill she just signed  in Washington, Oct. 3, 2008.(Xinhua Photo)

The 'yes' vote is certain to relieve international financial markets, which feared that a deep slump in the U.S. economy could drag the rest of the world into recession.

The final tally in the House was 263-171, a comfortable margin of 58 more votes than the measure garnered in Monday's defeat, when the bill first went to a vote.

Congressional leaders added two sweeteners to the bill, a tax cut and extended federal protection for bank deposits.

US President George W. Bush signed the bill into law shortly after it won final approval from Congress.

US President George W. Bush said, "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 county. We have shown the world that the United States of America will stabilize our financial markets and maintain a leading role in the global economy."

Stocks were up on Wall Street, where there was a lot of anticipation of the vote but where investors were hit by a bad report on the job market.

The Labor Department said employers slashed 159,000 jobs in September, the largest cut in five years and further evidence of a sinking economy.

Editor:Zhang Ning