US Senate approves sweeping housing bill

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WASHINGTON, July 27 (AFP): The US Senate today approved an elaborate housing rescue plan designed to help thousands of homeowners avert foreclosure and bolster mortgage finance giants that have struggled amid a volatile housing market.

But it came as the government shut down two more banks, taking the total to 10 that have been closed in the 18 months since the housing crisis first shuddered through the economy.

The Senate adopted the bill, which provides 300 billion dollars in federal guarantees to help refinance troubled mortgages, by a vote of 72-13, after the House of Representatives passed it Wednesday.

President George W Bush had dropped his earlier opposition and promised to sign the bill into law as soon as possible.

Before the vote, senators praised the bill as a product of rare bipartisan cooperation and said the legislation was vital to stem the fallout from a slumping housing sector.

"You're having the worst of all possible worlds. Wealth is declining, the source of wealth creation and costs are rising simultaneously," said Democrat Chris Dodd who chairs the Senate Committee on Banking, Housing and Urban Affairs.