WASHINGTON — WASHINGTON - The House of Representatives approved the $700 billion Wall Street bailout yesterday, setting in motion the biggest government intervention in the financial system since the Great Depression as lawmakers anxiously awaited the economic and political impact.
President Bush quickly signed the bill, and Treasury Department officials vowed to move swiftly to use sweeping new powers to try to stabilize markets and ease deepening fears about the economy.
The vote took place amid fears that the financial turmoil was paralyzing sources of credit vital to businesses, governments and consumers. Underscoring that concern, California Gov. Arnold Schwarzenegger warned this week that that his state might need an emergency federal loan because of the crisis.
The House's 263-171 vote was a sharp reversal from Monday, when the chamber rejected a similar bill and the Dow Jones industrial average plunged 777 points.
Lawmakers from both parties described yesterday's vote, coming a month before they face re-election, as among the most wrenching of their careers.
"I may lose my race over this," said Rep. Sue Myrick, a North Carolina Republican who voted for the bill yesterday after opposing it earlier in the week. "But that's OK. Because I believe in my heart I'm doing the right thing."
Proponents sought to portray the measure as important to ordinary Americans even as some made clear their contempt for Wall Street's recklessness.
"Those greedy pigs on Wall Street don't deserve help from hard-working Americans," said Nebraska Republican Rep. Lee Terry, another vote convert. "But allowing them to fail will cause so many other businesses ... to lose access to credit, lose business."
Before Monday's vote, Congress had been deluged with calls and e-mails from constituents opposed to the bailout plan.
But Monday's stark market debacle was greeted by public outrage and led to four days of heavy lobbying for the proposal. Senate leaders added tax breaks and other sweeteners to the measure and passed it Wednesday. The bill won 58 new yes votes yesterday in the House, clinching passage.
"We have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country," Bush said.
Nonetheless, markets were down yesterday, reflecting broader economic uncertainty and worries about a government report showing that unemployment rose sharply in September.
