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WASHINGTON (CBS) ― The house passes a $700B financial bailout bill in an effort to bring stability to reeling financial markets.

Prior to the official passing of the bill, Member after member went to the well of the chamber to voice discomfort and displeasure with many aspects of the bailout legislation. But they also said said they would vote for it anyway. And nearly 30 who voted against it on Monday said they had changed their minds.

President Bush was ready to sign it into law, and the Dow Jones industrial average on Wall Street was up in early trading in anticipation of the climactic vote.

House Speaker Nancy Pelosi called it a vote for "Mr. and Mrs. Jones on Main Street."

After a week of tumult on Wall Street and Washington, the House moved on the $700 billion bailout of the financial industry, an unprecedented government intervention designed to steady an economy on the brink.

"Our economy is not stable. Working families are suffering. Unemployment is over 10 percent in my district," said Rep Hilda Solis. The California Democrat voted against the measure that failed on Monday, but this time, she said she was considering a switch.

Rep. Joe Barton, R-Texas, who voted no earlier in the week, said that since the first vote, Senate leaders had tacked on billions of dollars in tax breaks and spending. Derisively, he called them "sweeteners to try and bribe enough" lawmakers to swing behind the bill.

If anything, the economic news added impetus to the sense of urgency.

The Labor Department said initial claims for jobless benefits had increased last week to the highest level since the gloomy days after the 2001 terror attacks. That came on top of Thursday's Commerce Department report that factory orders in August plunged by four percent. And the government reported Friday that employers slashed 159,000 jobs from payrolls in September, the most in five years.

The stock market opened higher on anticipation that the bill would pass, and the financial industry shakeout rolled on unpredictably.

Wachovia announced it had agreed to be acquired by San Francisco-based Wells Fargo & Co rather than by Citigroup. Executives said the new arrangement would keep the Federal Deposit Insurance Corp., on the sidelines, thus preventing any depletion of the government's fund that backs bank deposits.

It was little more than two weeks ago that Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke concluded that the economy was in such danger that a massive government intervention in the private markets was essential.

The core of the plan remains little changed from its conception - the Treasury Department would have $700 billion at its disposal to purchase bad mortgage-related securities that are weighing down the balance sheets of institutions that hold them. The flow of credit has slowed, in some cases drying up, threatening the ability of businesses to conduct routine operations or expand.

At the same time, lawmakers have dramatically changed the measure, insisting on greater congressional supervision over the $700 billion, taking measures to protect taxpayers, and insisting on steps to crack down on so-called "golden parachutes" that go to corporate executives whose companies fail.

Earlier in the week, the legislation was altered to expand the federal insurance program for individual bank deposits, and the Securities and Exchange Commission took steps to ease the impact of the questionable mortgage-backed securities on financial institutions.

The legislation had the support of the leadership in both parties - as was the case in the Senate, where it passed on Wednesday on a bipartisan vote of 74-25.

President George W. Bush has been lobbying aggressively for its passage, and the White House issued the latest in a series of grim warnings of the risks of defeat. "If the financial markets fail to function, American families will face great difficulty in getting loans to purchase a home, buy a family care or finance a child's education," it said in a written statement.

The underlying legislation would:

Authorize $700 billion for the government to purchase troubled assets and buy equity in distressed financial firms.

Require the Treasury Department to make rules to prevent excessive compensation for executives whose companies benefit from the rescue, and cap deductibility of executives' pay packages at $500,000 for firms that get $300 million or more from the program.

Establish an oversight board for the program, a special inspector general to monitor it and regular government audits.

Require that the president establish a plan to recoup the cost from the financial industry if, after five years, there are any losses.

Phase in the money for buying troubled assets, with $250 billion available immediately, $100 billion to be released if the president certifies it is needed, and the last $350 billion available with another certification, but subject to a congressional vote.

Among the sweeteners added to the bill are those that would:

Provide business tax breaks, including for production of, investment in, and use of renewable fuels.

Require group health plans that include mental health or addiction treatment to provide coverage for those conditions that is equitable to other medical coverage.

Increase personal credits against the AMT, shielding more than 20 million taxpayers from the tax.

Grant tax relief to victims of natural disasters in the Midwest and elsewhere.

Extend through 2011 a program that funds rural schools and local governments that have low property-tax bases because they lie within or are adjacent to federal lands.

Extend until end of 2009 the deduction for state and local general sales taxes.

Extend until end of 2009 individual tax breaks, including deductions for higher education costs and teachers' personal expenses.

Increase, from $100,000 to $250,000, the limit on federal bank deposit insurance.

(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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