Congress OK's Historic Bailout Bill

WASHINGTON (AP) - The $700-billion government bailout of the financial industry is headed to President Bush for his signature.

The House, which on Monday rejected an earlier version of the bill and sent stocks tumbling, approved it this time by a vote of 263-to-171. Senate approval came Wednesday night.

Congressman Zach Wamp (R - Tenn.) is one Representative who changed his vote after voting against the bill previously. Rep. Wamp said he changed his vote and supported the package "for the good of the country."

House Republican Leader John Boehner of Ohio says there's a "financial crisis" that would probably get worse without congressional action. He said there could be "an economic slump like most of us have never seen."

And House Speaker Nancy Pelosi said the bill was needed to "begin to shape the financial stability of our country."

But even before the vote, the White House tried to dampen optimism about its immediate impact on the economy. A spokesman says it's not aimed at giving a boost to the economy, but only at preventing a crisis in the economy.

The package now headed to President Bush does include some changes.

The core is the same: $700 billion at the disposal of the Treasury Department to buy bad mortgage-related securities weighing down the balance sheets of the institutions that hold them.

Among the new elements are a phase-in of that 700 billion to allow stronger congressional supervision, measures aimed at protecting taxpayers, and a crackdown on the "golden parachutes" given to departing executives of firms that may benefit from the bailout.

The bill also expands the limit on federal deposit insurance for individual bank deposits.

And then there's also a series of popular tax breaks, including for investment in and production of renewable fuels. Spending on rural schools, disaster aid and an expansion of mental health coverage under private insurance plans are also in there.