Senate approves bailout, Texas Senators vote yes

McALLEN - The two U.S. senators from Texas approved a considerably sweetened $700 billion emergency bailout package Wednesday night to rescue banks saddled by shaky mortgage assets.

Citing changes to the measure that stunningly failed in the House earlier this week, Republican Sens. Kay Bailey Hutchison and John Cornyn said the latest measure provides adequate oversight of how the money will be spent. The bill passed 74-25 as senators shrugged off widespread disapproval of the bailout just one month before congressional and presidential elections.

Senators crammed the economic rescue package with billions of dollars in tax breaks for the middle class, for homeowners who don't itemize their tax deductions and for victims of Hurricane Ike in the Texas counties of Brazoria, Chambers, Galveston, Jefferson and Orange.

"People think that this is the same offer that was made a week ago," Hutchison said on the Senate floor before the vote. "What we're taking up tonight does have improvements made by Congress. ... If this is passed and it is run right, the taxpayers will actually benefit."

Voting for the measure, the senators from the Lone Star State ignored widespread public opposition to what many regard as a mission to rescue financial firms from a mess of their own making. Hundreds of Texans have contacted their lawmakers in recent days urging them not to support the bailout.

"I know many of you are extremely upset about the idea of the government doing any type of bailout for Wall Street, and I completely agree with you," Cornyn said in a statement released before the vote. "If we do nothing, however, the potential consequences are dire."

The measure now moves to the House, where earlier this week lawmakers delivered a shocking defeat that sent the stock market tumbling.

U.S. Rep Rubén Hinojosa, D-Mercedes, was the lone South Texas lawmaker to support that earlier package. Reps. Solomon Ortiz, D-Corpus Christi, and Henry Cuellar, D-Laredo, voted against the measure, citing unanswered questions in the House version and unfavorable public opinion.

Since then, Cuellar has indicated he would be open to supporting the rescue package if it contained more oversight and some guarantee that neither taxpayers nor banks that don't take the bailout money would be forced to foot the bill.

Staffers for other representatives indicated their bosses would wait until they see the House version before commenting on the measure.

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Sean Gaffney covers business, the economy and general assignments for The Monitor. He can be reached at (956) 683-4434.