A majority of the US House of Representatives has voted in favour of a $700bn financial industry bailout bill.
The House, which sparked market and political turmoil by rejecting an earlier version of the bailout on Monday, voted 263 to 171 to pass the largest US government economic intervention since the 1930s.
House Democrats piled up 172 votes for the bailout, compared to 91 members of the minority party, reflecting the waning power of the Bush administration.
Democratic leaders credited White House nominee Barack Obama for helping to win over votes of wavering Democrats to end a political crisis that became a major test of leadership between he and Republican John McCain.
The US Senate had already passed the bill.
The landmark legislation then went to President George W Bush, who signed it into law.
Mr Bush said: 'We have shown the world that the United States of America will stabilise our financial markets and maintain a leading role in the global economy.
'By coming together on this legislation, we have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country.'
After campaigning for the bailout for two weeks and courting reluctant lawmakers in person and by telephone, Mr Bush signed the Emergency Economic Stabilization Act of 2008 before leaving Washington for the weekend.
The Senate added some $150bn in tax breaks to the original bill.
