The US Senate has approved the amended version of the US$700 billion bailout plan, and it is now up to the US House of Representatives to grant final approval.
Senators voted 74 to 25 in favour of the amended plan, which is generally seen as imperative to ending the unrest on the financial markets and restoring confidence in the US banking system.
The House is expected to cast its vote on the amended bill today, and US Treasury Secretary Henry Paulson urged for a prompt passing of the bill.
Under the plan, the US Treasury will buy distressed debts from financial institutions, in an effort to clean up their balance sheets and restore trust in the credit markets.
The amended bill differs from the one rejected on Monday in that it has added a series of tax cuts totalling US$150 billion, and extended federal protection for bank deposits.
The amendments are intended to persuade the more conservative members of the House, after they voted against a previous version of the bill. As a result stock markets plunged worldwide.
The approval of the amended bailout plan by the Senate yesterday was not enough to support the Australian stock market. The S&P/ASX 200 Index closed 0.7 per cent lower, while the All Ordinaries ended 0.8 per cent lower.
