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| Version 2 | Version 3 |
|---|---|
| House set for fresh bail-out vote | House set for fresh bail-out vote |
| (about 3 hours later) | |
| The US House of Representatives is preparing to vote on a $700bn (£380bn) plan to rescue the US financial sector. | The US House of Representatives is preparing to vote on a $700bn (£380bn) plan to rescue the US financial sector. |
| Party leaders are hoping the House, which stunned global markets by rejecting the initial plan, will follow the Senate and back a new version. | Party leaders are hoping the House, which stunned global markets by rejecting the initial plan, will follow the Senate and back a new version. |
| The House is due to debate the deal on Friday morning and is expected to vote later in the day. | The House is due to debate the deal on Friday morning and is expected to vote later in the day. |
| The Senate bill added about $100bn in new tax breaks in the hope of gaining more support from House Republicans. | The Senate bill added about $100bn in new tax breaks in the hope of gaining more support from House Republicans. |
| Share prices in Japan fell to a three-year low on Friday, after a day of losses on the New York stock exchange. | Share prices in Japan fell to a three-year low on Friday, after a day of losses on the New York stock exchange. |
| The Nikkei index was down by more than 1.9% when it closed, its lowest level since May 2005. That followed a sharp fall in US shares on Thursday as investors showed caution over prospects for the vote in the US Congress. | The Nikkei index was down by more than 1.9% when it closed, its lowest level since May 2005. That followed a sharp fall in US shares on Thursday as investors showed caution over prospects for the vote in the US Congress. |
| NEW MEASURES IN BAIL-OUT BILL Increased protection for saving depositsIncreased child tax creditsMore aid for hurricane victimsTax breaks for renewable energyHigher starting limits to alternative miminum tax | NEW MEASURES IN BAIL-OUT BILL Increased protection for saving depositsIncreased child tax creditsMore aid for hurricane victimsTax breaks for renewable energyHigher starting limits to alternative miminum tax |
| On Wall Street, the Dow Jones index closed down 3.2% on Thursday. | On Wall Street, the Dow Jones index closed down 3.2% on Thursday. |
| In Washington, House Speaker Nancy Pelosi, a Democrat, has said no debate will be scheduled until the party feels it has enough votes to pass. | In Washington, House Speaker Nancy Pelosi, a Democrat, has said no debate will be scheduled until the party feels it has enough votes to pass. |
| "We're not going to take a bill to the floor that doesn't have the votes. I'm optimistic that we will take a bill to the floor," she said. | "We're not going to take a bill to the floor that doesn't have the votes. I'm optimistic that we will take a bill to the floor," she said. |
| Bush appeal | Bush appeal |
| When the House first rejected the plan on Monday - by 228 votes to 205 - legislators had concerns about both the content of the plan and the speed with which they were being asked to pass it. | |
| This thing, this issue, has gone way beyond New York and Wall Street George W BushUS president US markets wary over rescue dealSend us your comments | This thing, this issue, has gone way beyond New York and Wall Street George W BushUS president US markets wary over rescue dealSend us your comments |
| President George W Bush has since urged the House to back his revised bill. | President George W Bush has since urged the House to back his revised bill. |
| The package is aimed at buying up the bad debts of failing institutions on Wall Street, but has been amended to include extra tax breaks for ordinary Americans and more protection for savings accounts. | The package is aimed at buying up the bad debts of failing institutions on Wall Street, but has been amended to include extra tax breaks for ordinary Americans and more protection for savings accounts. |
| Both the Democratic and Republican parties are planning to press their members in the House on Thursday to swing behind the revised bill. | Both the Democratic and Republican parties are planning to press their members in the House on Thursday to swing behind the revised bill. |
| Horse-trading | Horse-trading |
| The BBC's Justin Webb, in Washington, says some members have called for more amendments, which opens up the prospect of further horse-trading up to the point at which votes are cast. | The BBC's Justin Webb, in Washington, says some members have called for more amendments, which opens up the prospect of further horse-trading up to the point at which votes are cast. |
| Both the Republican and Democratic House leaders said they believed the bill would probably pass. | Both the Republican and Democratic House leaders said they believed the bill would probably pass. |
| Pressure will particularly be applied to the 133 House Republicans who went against party affiliation to reject President Bush's bill, correspondents say. | Pressure will particularly be applied to the 133 House Republicans who went against party affiliation to reject President Bush's bill, correspondents say. |
| Tennessee Republican Zach Wamp, one of those who voted against the bill on Monday, said he would now vote in favour of the measure despite ordinary Americans remaining "as mad as heck" at the situation on Wall Street. | Tennessee Republican Zach Wamp, one of those who voted against the bill on Monday, said he would now vote in favour of the measure despite ordinary Americans remaining "as mad as heck" at the situation on Wall Street. |
| "You have got to do what you think is right. I thought the right thing Monday was to vote no. And I think the right thing to do tomorrow is to vote yes." | "You have got to do what you think is right. I thought the right thing Monday was to vote no. And I think the right thing to do tomorrow is to vote yes." |
| Tax breaks | Tax breaks |
| The bill successfully passed through the Senate on Wednesday after it was amended to raise the government's guarantee on savings from $100,000 to $250,000. | The bill successfully passed through the Senate on Wednesday after it was amended to raise the government's guarantee on savings from $100,000 to $250,000. |
| It also now includes tax breaks to help small businesses, expand the child tax credit and extend help to victims of recent hurricanes. Most importantly, it extends the tax break aimed at boosting the provision of alternative energy such as wind farms. | |
| It also includes a number of so-called "pork-barrel" measures including tax cuts for rum manufacturers in Puerto Rico and the owners of racetracks. | It also includes a number of so-called "pork-barrel" measures including tax cuts for rum manufacturers in Puerto Rico and the owners of racetracks. |
| The additional cost of these unrelated tax breaks - which could add $100bn to the cost of the bill- have worried some fiscally conservative Democrats in the House of Representatives. | The additional cost of these unrelated tax breaks - which could add $100bn to the cost of the bill- have worried some fiscally conservative Democrats in the House of Representatives. |
| Whether those worries will lead them to vote against the measure is at this stage unclear. | Whether those worries will lead them to vote against the measure is at this stage unclear. |