Bush swiftly signs economic bailout package

U.S. President George W. Bush on Friday signed a mammoth economic rescue package aimed at saving troubled U.S. banks and easing a credit crunch that he warned could spell disaster for the U.S. public.

The U.S. Congress earlier approved a revised 700-billion-dollar financial bailout bill for U.S. banks, under pressure from all sides as the effort to head off a spreading financial crisis hung in the balance.

The step concluded two weeks of legislative haggling in Congress that had roiled and captivated global markets. The financial rescue package was approved by a vote of 263-171.

U.S. President George W. Bush hailed congressional passage of the Wall Street bailout package, praising it as vital "to helping America's economy weather the financial storm."

The U.S. Congress had shocked world markets on Monday by rejecting a previous draft. With elections on Nov. 4, lawmakers from both parties were wary of voter backlash in asking taxpayers to pay for Wall Street's mistakes.

The European Commission welcomed the passage of the $700 billion financial industry bailout bill in the U.S. Congress, saying it hoped the move would help restore market confidence.

"We welcome the vote and we hope it will help restore confidence in financial markets," Commission spokeswoman Amelia Torres said.

U.S. stocks fell heavily Friday after Congress passed the huge financial rescue plan, as investors remained nervous about a global credit squeeze and weak economy. The Dow industrials lost 162 points or 1.55 percent at the
closing bell.

The dollar continued to rally against the euro and European stocks rose about 3 percent.

Earlier on Friday, the United States reported its biggest monthly job loss in 5 1/2 years, more evidence of an approaching recession. Data showed the U.S. services sector holding up.

(Compiled with agencies)