Third District Congressman Zach Wamp switched his vote on the $700 billion federal mortgage bailout after he said a new version of the bill "adds accountability."

The House reversed course and approved the bailout early Friday afternoon.

The House approved H.R. 1424 by a vote of 263 to 171. The Senate approved the measure with a 74 to 25 vote. The bill now goes to the President for his signature.

Rep. Wamp said Friday morning, “There are two ways to solve a fiscal crisis: either by doing nothing and letting the problem resolve itself or by providing a lender of last resort. This painstaking process reflects the unprecedented options Congress was faced with and the difficult deliberations occurring this week in Washington.

"Our stand Monday sent a loud message to Wall Street that the American people demand more accountability and sent a strong message to the people who are paying their own bills that we are willing to stand up for them and fight for a better plan.

"We were right to hold out for more reforms. Because we stood our ground, FDIC will increase the limit of insured deposits from $100,000 to $250,000 to shield Americans’ hard-earned money and protect community banks from frantic withdrawals. The Securities and Exchange Commission has clarified the mark-to-market accounting rule to improve liquidity in the market, giving financial institutions greater flexibility when valuing troubled assets.

"The revised plan includes an extension of the state and local sales tax deduction, which is vital for Tennesseans, a one-year patch to protect millions of middle-income American households from the alternative minimum tax and an extension of renewable energy and energy efficiency tax incentives.

"One of my biggest hurdles to support this bill was that it increases our national debt. I have also long advocated that our party tie debt ceiling increases to a balanced budget amendment so we have to adhere to the same discipline as our states.

"I voted against a bad bailout bill on Monday, and will now vote for a better rescue plan, not because I like it or want to, but because we fought as hard as we could for more reforms. Now it’s time to vote for the financial security of all Americans and small business people on Main Street. But time is of the essence, and the scope of this serious crisis is reaching regular Tennesseans from those saving for retirement to families who need loans for automobiles, homes or college and small businesses that need loans to meet payroll or expand their operations.

"We needed to fight for the best product we possibly can get, knowing we have to do something to restore confidence in the markets. As I have said before, restoring true confidence to the marketplace cannot be done by passing one bill through Congress. We must continue to work together to enact sweeping reforms to strengthen transparency and accountability in our financial institutions and protect American taxpayers.”

Sen. Lamar Alexander said, “I’m glad that Congress has worked together to approve this bipartisan bill that will allow the Treasury Secretary to begin cleaning up the wreck on the economic highway caused by bad mortgage loans. This should help get economic traffic moving again and restore confidence so that Americans can get auto, student, mortgage, business, and farm credit loans at reasonable prices. Since the Secretary will be buying troubled mortgage assets and then selling them, the cost to taxpayers should be limited, and any profits will go to reduce the federal debt.”

Rep. Wamp had voted against the earlier version of the bailout bill.