The US Senate strongly endorsed the $700 billion economic bailout plan on Wednesday, leaving backers optimistic that the easy approval would lead to House acceptance by Friday and end the legislative uncertainty that has rocked the markets.

In stark contrast to the House rejection of the plan on Monday, a bipartisan coalition of senators including both presidential candidates showed no hesitation in backing a proposal that had drawn public scorn, though the outpouring eased somewhat after a market plunge following the House defeat. The Senate margin was 74 to 25 in favor of the White House initiative to buy troubled securities to ease a growing credit crunch.


The presence in the Senate of both presidential candidates in the final weeks of the campaign gave weight to the moment. The political tension was clear as Senator Barack Obama walked to the Republican side of the aisle to greet John McCain, who offered a chilly look and a brief return handshake.

McCain did not make remarks on the legislation. Obama, in his speech, said the bailout plan was regrettable but necessary and he referred to the stock market drop after the House vote. "While that decline was devastating, the consequences of the credit crisis that caused it will be even worse if we do not act now," he said.

In the House, officials of both parties said they were increasingly confident that politically enticing provisions bootstrapped to the original bill including $150 billion in tax breaks for individuals and businesses would win over at least the dozen or so votes needed to reverse Monday's outcome and send the measure to President George W. Bush.

The bill is aimed at reinvigorating worldwide credit markets and interbank lending that had frozen up while overleveraged financial institutions staggered under the weight of failed mortgages.

The bill next goes to the House of Representatives, where a vote is likely on Friday.

Agencies