$700bn US bailout back on track

the plan now contains tax breaks for families and small businesses in an effort to win favour with the House of Representatives. The new bill also contains an extension of deposit protection from the current $100,000 up to $250,000.

President Bush commented that the bill was "essential to the financial security of every American".

A vote on the new bill is expected on Friday, although it may get carried over until Monday.

"The American people expect - and our economy demands - that the House pass this good bill this week and send it to my desk,", the President added.

Treasury Secretary Henry Paulson who had his original bill rejected, said: "This sends a positive signal that we stand ready to protect the US economy by making sure that Americans have access to the credit that is needed to create jobs and keep businesses going," he said.