21 of 33
BACKNEXT
Friday, Oct. 3 - Bailout becomes law
Friday, Oct. 3 - Bailout becomes law
A man looks on beneath a Times Square news ticker announcing the Congressional bailout bill passage October 3, 2008 in New York City. (Photo by Mario Tama/Getty Images)
Just hours after the Labor Department reported the biggest drop in jobs in more than five years, the House finally passed a far-reaching plan to bail out the nation's financial system.

The 263-to-171 vote was the result of strong lobbying on the part of the White House and other supporters of the bill all week. After being amended by the Senate to include key sweeteners, including several tax breaks and an increase in the FDIC insurance cap to $250,000 from $100,000, members on both sides of the aisle agreed to switch their votes from "No" to "Yes." President Bush signed the bill into law later in the day.

Earlier Friday, Wachovia and Wells Fargo announced plans to merge, just four days after Citigroup said it would pay $2.2 billion for Wachovia's banking assets. Citigroup demanded that Wachovia and Wells Fargo terminate the proposed deal, valued at approximately $15.1 billion.

Banks weren't the only one scrambling for cash. California Gov. Arnold Schwarzenegger told the Treasury Secretary that the credit freeze had shut down funding for the state, which may need a $7 billion emergency loan from the federal government.

The Dow closed down 818 points for the week, it's worst week in seven years.

NEXT: Saturday and Sunday, Oct. 4-6 - Battle of the banks
Last updated September 14 2009: 2:19 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
17 cool gadgets that tease the future Smart telescopes, surveillance for dogs, an electric roadster and more from CES 2018. More
These 12 airplane beds let you really sleep on a flight For the price of a premium class ticket, you may just get a space that's comfortable, private, and quiet enough to ensure a good rest. More
CES 2018 kicks off with oddball gadgets The biggest tech show of the year opened with a collection of quirky gadgets. More

Special Offer