The Senate has approved the $700 billion bailout of Wall Street, setting the stage for another House vote after its initial defeat earlier this week. The Senate version includes higher government insurance on bank deposits and some $150 billion in personal and corporate tax cuts. It also proposes a change in accounting rules that would have companies report the market price of their assets even if they don’t plan to sell them. The final vote was 74-to-25. The Senate Majority Leader, Harry Reid, said both sides had overcome partisan politics.

Sen. Harry Reid: “The Senate came together tonight in a bipartisan fashion to address one of the most critical economic challenges this country has ever faced. And we’ve sent a clear message to America, to all America: that we will not let this economy fail. This is not a perfect bill, by any means. We all know that. But it’s much improved from what we got originally, and it’s been improved because we have worked together. This is not a Democratic bill. It’s not a Republican bill. It’s our bill.”

Senators Barack Obama, John McCain and Joe Biden returned to Washington from the campaign trail for the vote. Speaking on the Senate floor, Obama urged passage of the bailout.

Sen. Barack Obama: “Potentially, we could see thousands of businesses close. Millions of jobs could be lost. And a long and painful recession could follow. In other words, this is not just a Wall Street crisis, it’s an American crisis. And it’s the American economy that needs this rescue plan.”

Before he head back to the Capitol, McCain promised supporters in Missouri he would crack down on Wall Street.

bq.Sen. John McCain: “As president, I will also act immediately with reforms to restore fairness, integrity and financial sanity to the institutions that have failed us on Wall Street. We will apply new rules to Wall Street to end the frenzies of speculation by people gaming the system and to make sure that this present crisis is never repeated.”