US President George Bush has wasted no time in signing into law the US$700 billion dollar rescue plan for the financial sector, saying the bailout will prevent the crisis on Wall Street from widening.
The US House of Representatives voted 263 to 171 to pass the bill whichwill allow Treasury to buy troubled assets from banks and financial institutions in the hope of kick-starting lending.
President Bush says the deal will prevent the crisis on Wall Street from becoming a crisis in communities across America.
"More businesses will be able to stock their shelves and meet their payrolls. More families will be able to get loans for cars and homes and college education. More state local governments will be able to fund basic services."
The bill is said to be one of the most far-reaching economic interventions in the US economy since the 1930s depression.
Supporters of the legislation say the plan is crucial to the US government's efforts to control the credit crisis but opponents say it puts taxpayers at risk, rewards bad decisions made by big companies and fails to attack America's economic problems.
Wall Street is having a lukewarm response to the measure, despite initially appearing enthusiastic, recording gains of more than 300 points in anticipation of the bill passing.
The Dow Jones Industrial Average erased all its gains when the pass vote was announced and is currently 12 points lower.
The markets are also reflecting on the planned purchase of stricken bank Wachovia by rival Wells Fargo and a poor job market report.
