Senate to Vote on Revised Rescue Plan

The Senate is scheduled to vote Wednesday evening on its version of the financial rescue plan which will include an increase in the cap to the level of deposits in bank accounts insured by the FDIC.
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The Senate is scheduled to vote Wednesday evening on its version of the $700 billion financial rescue plan rejected Monday by the

House of Representatives

, which will include an increase in the cap to the level of deposits in bank accounts insured by the

Federal Deposit Insurance Corp.

up to $250,000, according to published reports.

The hope is that by increasing the amount the

FDIC

can insure, the necessary votes can be found in the House to approve the measure, the

Wall Street Journal

reports. Based on Monday's voting results, 12 more votes would be needed in the House to pass the bailout legislation.

The

Journal

reports the vote also will include the Senate version of an extension to a series of renewable energy and other business tax credits. The package of tax credits also will include an annual fix to the alternative minimum tax credit.

The strategy is risky because some House members might see it as a high-handed move by senators, the

Associated Press

reports. Senate passage of a bailout measure has seemed assured all along. The showdown is in the House, but now the Senate is trying to force the House's hand.

The new approach, announced Tuesday night by Senate Majority Leader Harry Reid (D. Nev.), and Minority Leader Mitch McConnell (R., Ky.), tacks the large and contentious tax measures to the bailout bill. But Senate leaders figure the House will have to approve it because the tax cuts are too appealing to Republicans and the financial rescue plan will still seem essential to most Democrats, according to

AP

.

The Senate bill would raise federal deposit insurance limits to $250,000 from $100,000.

Presidential nominees Barack Obama and John McCain, and Sen. Joe Biden of Delaware, the Democratic vice presidential nominee, plan to return to Washington for the vote Wednesday night. If Obama and Biden vote for the measure, it would make it hard for other Democrats to reject or change the Senate measure, the

AP

reports.

This article was written by a staff member of TheStreet.com.