Tweaks have been made in hopes of rescuing a rescue plan to shore up the nation’s financial system. The Senate has passed it. Now, the issue returns to the House.
Senator McCaskill (D) says she understands why the public hasn’t supported the plan.
"The problem that you have right now is that I think the information many Americans have received is ‘Greedy jerks on Wall Street get my money’. Of course, everybody is opposed to that. Who wants to give money to greedy jerks on Wall Street?" McCaskill said in a conference call with reporters.
McCaskill insists this plan doesn’t do that. It provides up to a $700 billion dollar infusion of cash into the financial sector to get credit flowing again. The money would be used by the Treasury Department to buy assets that are dragging down financial institutions, many bundled mortgages that lost value in the sub prime mess. $250 billion would be released right away. The remainder would be available upon approval by Congress. Added to the package are more than $100 billion in business and family tax breaks and a temporary increase in the limit of federal insurance on bank deposits from $100,000 to $250,000. Proponents say that is necessary to keep bank customers from pulling unprotected sums and switching them to other financial institutions, further undermining the ability to make loans.
McCaskill was among the 74 senators who voted for the revised plan.
"This isn’t pretty, but the alternative is a lot uglier," McCaskill said, "I think it’s the best thing for our country, the best thing for our economy and the best thing for working families in Missouri."
The House defeated a similar measure Monday. The tax breaks have been inserted in an effort to attrack more Republican votes. House leaders have scheduled a vote tomorrow on the Senate package.