ARSA Update: Financial Rescue Bill Passes, President Signs

UPDATE: On Oct. 3, President Bush signed the Emergency Economic Stabilization Act (EESA). The EESA aims to restore liquidity and balance to credit markets by creating a mechanism for the Treasury Department to purchase mortgage-backed securities from troubled financial institutions.

Earlier that same day, the House of Representatives passed the bill by a vote of 263 to 171. Wednesday evening, the Senate passed the bill by a vote of 75 to 24.

After failing to pass the House earlier in the week, the legislation was enhanced in the Senate with an increase in Federal Deposit Insurance levels, an extension of expiring tax provisions, and language to provide an alternative minimum tax patch for middle-income taxpayers.