Two days after the Bail Out Bill failed in the House, the Senate plans to vote on the “$700 billion bank rescue plan,” on Wednesday evening. The Senate Bill “adds new provisions – including raising the FDIC insurance cap to $250,000 from $100,000 – and will be attached to an existing revenue bill that the House also rejected Monday, according to several Democratic leadership aides.”
Republican presidential nominee John McCain and Democratic nominee Barack Obama and his running mate Joe Biden confirmed that they would be present for the vote.
Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., announced the plan Tuesday.
“Senate Democrats and Republicans believe it is essential that we work quickly on this important legislation to restore confidence to our financial system and strengthen the economy,” Reid said in a statement.
CNN reports that sources said “they expect bipartisan support.”
Earlier Tuesday, Federal Deposit Insurance Corp. Chairman Sheila Bair asked Congress to allow her agency to increase the $100,000 limit per account that has been in place since 1980. To do so would help restore confidence in the markets, she said. Bair did not say what she thinks the new limit should be.
The revised bailout bill also includes a “Mental Health Parity” provision, which would require health insurance companies to cover mental illness at parity with physical illness.
Because the bill must originate in the House, the Senate is attaching the rescue plan to a bill that deals with renewable energy tax incentives. This would allow the Senate to vote before the House.
McClatchy reports, “Angry voters drove bailout’s failure” in the House.
Stay tuned… America is in a nut shell screwed right now and examples of “how fragile credit markets have become” are starting to show up on the state level.