Senate votes for new rescue deal

In news that may interest those seeking to invest in US property, the Senate has backed a revised plan designed to bail out the struggling American banking system by 74 votes to 25.

The deal still includes the same central plan to spend USD700 billion (GBP380 billion) of taxpayers' money to rescue the financial sector as the original blueprint that was rejected by Congress on Monday.

However, it includes tax breaks for businesses and middle earners, a move intended to assuage members of Congress who voted against the plan because of the burden it would place on taxpayers.

Now it has been backed by the Senate, the new plan will be submitted to Congress for a fresh vote.

If it goes through, the plan could help ease the credit crunch, making the purchase of US property easier.

Those looking to buy in California may be interested to note that a new law to improve urban planning has been signed off by state governor Arnold Schwarzenegger.

It gives power to local authorities to link developments such as new public transport funding to better planned expansions of towns and cities, the intention being that this will prevent unnecessary urban sprawl.