INDUSTRY NEWS

Senate agrees on bail-out

The US Senate has agreed to support a $700 million bail-out plan to buy up bad debt.

Legislators had earlier registered their disapproval for the scheme, launched by the Bush administration, although the vote was far from unanimous.

After a six-hour session the country’s most senior law-makers voted 74 in favour of the motion, 26 against.

The bill will now return to the House of Representatives, were previously its adoption was halted.

Presidential candidate Barack Obama spoke in favour of the bill. However, he acknowledged it had some shortcomings.

“This plan is not perfect. Democrats and Republicans in Congress have legitimate concerns about it,” he told fellow senators.

The US initiative should return some confidence to international financial markets hammered recently by falling commercial property prices and mis-selling.

The UK government has offered its support to banks and savers and proposed to increase the amount of cash covered by its deposit guarantee.ADNFCR-1329-ID-18807362-ADNFCR

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