H.R. 1424, the Emergency Economic Stabilization Act of 2008, aka “The Great American Bailout Bill of 2008”, has passed both the House and Senate and has been signed into law by President Bush. The Senate had approved the plan on Wednesday night by a vote of 74 to 25, while the vote in the House was 263 in favor versus 171 against.
This bill won’t act as a quick fix and it probably won’t be the final action taken by the U.S. government to offset the current financial crisis. An economic stimulus package will almost certainly be brought up by whomever is the next President, as well as either further additions to this bill or even an Emergency Economic Stabilization Act of 2009 (for what it’s worth I don’t think it’ll be as big as the $700 million of this one).
As far as Private Equity is concerned, don’t look for the debt markets to rebound anytime soon just because this was passed. It’ll be quite some time before things loosen up.