Sweetened Bailout Bill Sails Through House

"We have in essence stopped the bleeding that was going on ... in a thoughtful and intelligent manner that has in the short-term rescued our economy," John Larson, vice chair of the House Democratic Caucus, said during a press conference.

Before signing the bill, President George Bush said the legislation will take time to have a full impact on the economy, which continues to face serious challenges. He praised its passage, however, as an important first step.

"By coming together on this legislation, we have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country," Bush said. "We have shown the world that the United States of America will stabilize our financial markets and maintain a leading role in the global economy."

Treasury Secretary Henry Paulson thanked lawmakers for supporting the bill "at a critical stage in the election calendar." He pledged to "rapidly" but "methodically" deploy the new powers.

"There is no one-size-fits-all solution to alleviating the stress in our financial system," Paulson said in a statement. "Each situation will be different and we must implement these new programs with a strategy that allows us to adapt to changing circumstances and conditions, and attract private capital."

Federal Reserve Chairman Ben Bernanke praised the passage of the rescue plan, pledging to work closely with the Treasury as it undertakes the new initiatives.