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Congress adds sweeteners to reduce bitterness of bailout bill Save Email Print
Posted: 3:40 PM Oct 3, 2008
Last Updated: 3:40 PM Oct 3, 2008

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WASHINGTON (AP) -- Monday, it lost by a dozen votes. Today the House passed it by almost five-times that margin. While public sentiment seemed to shift on the federal rescue plan for the financial industry, the package now headed to President Bush does include some changes.

The core is the same: 700 billion dollars 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.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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