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U.S. Senate approves revised financial bail-out plan |
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Thursday, 02 October 2008 |
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The U.S. Senate approved a $700 billion bailout of the financial industry, putting pressure on the House to approve a plan that political and financial leaders called crucial to averting economic catastrophe.
The revised legislation is aimed at revive worldwide credit markets and interbank lending that had frozen up while overleveraged financial institutions staggered under the weight of failed mortgages.
But market participants warned that the rescue package is not a cure-all, with a worsening economic outlook spurring calls for central banks to cut interest rates.
Stocks in Asia were lower on Thursday, while Treasuries rose and the dollar gave up early gains.
Amid warnings that failure to act could plunge the country into a depression, the Senate voted 74 to 25 in favour, sending the measure to the House of Representatives, probably for a vote on Friday.
U.S. President George W. Bush praised Senate passage of the package and urged the House to quickly do the same.
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