With seemingly softened Republican opposition, the $700 billion ‘sweetened’ bailout found a second life on Wednesday - winning lopsided passage in the Senate and gaining ground in the House.

In a rare case of consensus between Senate Democrats and Republicans, the economic bailout bill - loaded with more than $100 billion in tax breaks and other aid – was passed by a wide margin, 74-25, and sent back to the House for a second chance on Friday.

The agreement was reached after a day of continual phone calls among the House Speaker Nancy Pelosi, Senate majority leader Harry Reid, the White House and GOP leaders. Republican presidential nominee, John McCain, too stepped up his call for the intervention. Both John McCain and Barack Obama were expected to cast their respective “yes” votes.

Obama, standing at his place on the edge of the chamber, said: “To Democrats and Republicans who’ve opposed this plan, I say step up to the plate, let’s do what’s right for the country at this time, because the time to act is now.”

During the Senate vote also, House leaders were on the lookout for the crucial 12 votes they would need to turn around Monday’s 228-205 ‘spectacular’ defeat. Their aim was to get around a few of the 133 Republicans who had voted “No”.

In fact, there are indications that their opposition is easing, particularly after the Senate added $110 billion in tax breaks for businesses and the middle class, in addition to a provision to raise the limits on federal deposit insurance from $100,000 to $250,000.

The bailout package would allow the government to spend billions of dollars for buying bad mortgage-related securities and other devalued assets held by troubled financial institutions. In the opinion of advocates of the package, if successful the prospective move would allow frozen credit to begin flowing again, thereby preventing a deep recession.