WASHINGTON (CNN) — The Senate plans to vote on the $700 billion bank rescue plan Wednesday evening — two days after the House failed to pass it, leaders from both parties announced late Tuesday.

In a surprising and potentially risky move, the Senate is adding an enhanced version of the failed bill to an existing revenue bill that the House also rejected Monday.

The bailout plan has new provisions, including a hike to the FDIC insurance cap from $100,000 to $250,000.

WASHINGTON (CNN) — The Senate plans to vote on the $700 billion bank rescue plan Wednesday evening — two days after the House failed to pass it.

The bill adds provisions — include raising the FDIC insurance cap from $100,000 to $250,000 — and will be attached to an existing revenue bill that the House also rejected Monday, according to several

The vote is scheduled for after sundown, in observance of the Jewish holiday. Republican presidential nominee John McCain and Democratic nominee Barack Obama and his running mate Joe Biden confirmed that they would be present for the vote.

WASHINGTON (CNN) — The Senate plans to vote on the $700 billion bank rescue plan Wednesday evening — two days after the House failed to pass it.

MEXICO CITY (CNN) — President Felipe Calderon sent Congress a security plan Tuesday intended to cut the influence of narcotraffickers and urged its passage.

The plan would better coordinate federal and local police, seek to root out corruption and establish bases “so we are all integrated into a system of national public security,” he said.

The plan would establish police processes for investigating crime that would safeguard respect for the law and human rights and would increase the penalty for selling drugs to minors, he said.

WASHINGTON (CNN) — The Senate may be ready to give approval this week to a nuclear trade deal with India that the Bush administration has been pushing Congress to wrap up.

The House of Representatives gave its OK to the bill Saturday and now Senate Majority Leader Harry Reid has predicted the Senate could vote as early as Wednesday.

But the vote is not a certainty, thanks to a rapidly approaching congressional adjournment and complicated Senate rules. At least one senator, remaining anonymous under parliamentary rules, has been blocking a vote. And there must be agreement to remove a rare requirement that congressional approval must be after the Senate is in session for 30 days, an impossible-to-meet clause as Congress races to go on the campaign trail for the November election.
–From CNN’s Charley Keyes

BUENOS AIRES, Argentina (CNN) — Two months after resolving the most contentious crisis of her nascent presidency, Argentine President Cristina Fernandez de Kirchner is again being challenged by Argentina’s powerful farming sector.

Argentine agricultural leaders on Tuesday announced plans to strike this week in protest against rising costs throughout the country.

Argentine Rural Society President Hugo Biolcati told reporters farmers will not sell grains from Friday until Wednesday.

“The situation has gotten worse recently for farmers,” Biolcati said. “The agriculture secretary knows the situation that we are facing, and didn’t offer any sign of wanting to move talks forward… that is why we have decided to protest again.”

NEW ORLEANS, Louisiana (CNN) — Federal authorities will conduct an investigation into the shootings of unarmed civilians, allegedly by seven police officers, on a New Orleans bridge in the aftermath of Hurricane Katrina, officials said Tuesday.

In August, a judge dismissed state charges against the seven, six of whom are still police officers.

The Department of Justice’s Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Louisiana and the FBI’s New Orleans office issued a statement saying they plan to conduct “an independent and thorough review” of the incident on the Danziger Bridge.

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ISLAMABAD, Pakistan (CNN) — U.S. military forces launched airstrikes on a Pakistani village early Wednesday morning, two Pakistani military sources told CNN.

The strikes occurred about 1 a.m. in a village in North Waziristan, a mountainous region of northwest Pakistan near the Afghanistan border, a Pakistani military source said. The sources said the U.S. military launched two or three missiles that struck at least one home. The sources did not have any information on casualties or injuries.

U.S. military sources could not immediately be reached for comment.

From CNN Justice Producer Terry Frieden

WASHINGTON (CNN) — More than 1,750 gang members and associates were taken into custody in a nationwide “summer surge” of police operations aimed at reducing street violence, authorities announced Tuesday.

The arrests of members of MS-13, 18th Street and many other gangs between June 1 and September 30 compares with about 1,300 arrests in similar operations a year ago.

Details of the four-month law enforcement “surge operation” coordinated by U.S. Immigration and Customs Enforcement (ICE) will be announced Wednesday at a press conference in Washington. ICE Assistant Secretary Julie Myers and local police officials from New Jersey, Georgia and Kansas will describe some of the operations, including the capture of dangerous MS-13 and other gang leaders re-arrested after they had been deported.

From CNN’s Paul Courson

WASHINGTON (CNN) — The man who bankrolled most of the “free benefits” that Alaska Sen. Ted Stevens is on trial for allegedly trying to hide took the stand Tuesday, acknowledging his close friendship with the lawmaker even while serving as the government’s star witness against him.

Bill Allen also testified that Veco purchased a switch to power a generator at the Girdwood home, and that he did not know what it had cost. Asked if Stevens ever paid the company back, Allen said, “No, not that I know of.”

Court recessed for the day after about an hour and a half of Allen’s testimony. He will return to the stand Wednesday. Prosecutor Nicholas Marsh told the judge earlier Tuesday that the state may rest its case on Thursday.

NEW YORK (CNNMoney.com) — Stocks rallied Tuesday afternoon as investors scooped up shares battered in the bloodletting that followed Congress’ failure to pass a $700 billion bank rescue plan.

The Dow Jones industrial average added 485 points, about 4.7 percent, recovering some of the record 777 points lost the day before. It was the third-biggest one-day point advance for the indicator in its history.

The Standard & Poor’s 500 index rose 5 percent and the Nasdaq composite gained about 5.3 percent.

Stock gains accelerated late in the day after the FDIC chairwoman said she’ll seek to boost the limit on protected bank deposits. Such a move would give individuals more protection amid the financial crisis. The inclusion of such a provision in the $700 billion bailout plan might also mollify critics who think the plan is too focused on Wall Street, versus Main Street.
–By CNNMoney.com’s Alexandra Twin

From CNN’s Paul Courson

WASHINGTON (CNN) — The man who bankrolled most of the “free benefits” that Alaska Sen. Ted Stevens is on trial for allegedly trying to hide took the stand Tuesday, acknowledging his close friendship with the lawmaker even while serving as the government’s star witness against him.

Wearing a gray sport coat, Bill Allen did not look toward the defense table as he took the stand. Asked whether he knew Stevens, he said, “Yes, he’s right over there,” pointing to the expressionless senator.

During his testimony, Allen acknowledged trading Stevens a new Land Rover vehicle he had paid about $44,000 for in exchange for Stevens’ 1964 1/2 Mustang plus $5,000.

Asked if he thought it was a fair trade, Allen said, “not really,” but testified he entered into the agreement “because I liked Ted.

ISLAMABAD, Pakistan (CNN) — The leader of Pakistan’s Taliban, Baitullah Mehsud, is dead from kidney failure, sources tell CNN.

An unnamed Islamabad-based source with connections within the Mehsud tribe in South Waziristan told CNN that Mehsud died around 1 a.m. Wednesday. Military officials in the field also told CNN that Mehsud had died.

Geo Television of Pakistan and other local station reported his death, too. But some reports also had the Taliban denying Mehsud’s death.

The Pakistan government blamed Mehsud for the December 27, 2007, assassination of former Prime Minister Benazir Bhutto. Mehsud had denied any involvement.
–From CNN’s Zein Basravi

NEW YORK (CNNMoney.com) — The federal agency that guarantees bank deposits is asking Congress for temporary authority to raise the limit on the amount of money it insures for individual bank accounts.

Federal Deposit Insurance Corp. Chairman Shelia Bair put out a statement late Tuesday afternoon asking that Congress allow her agency to increase the $100,000 limit per account that has been in place since 1980.

She did not say what she thinks the new limit should be. FDIC spokesman Andrew Gray said simply, “We’ll leave that to Congress.” Earlier Tuesday, both presidential nominees — Barack Obama, D-Illinois, and John McCain, R-Arizona — backed increasing the maximum to $250,000.

WASHINGTON (CNN) — Several Democratic House members compiling an alternative to the financial bailout measure defeated Monday said they were pressured to act too quickly.

“The whole bill has been fueled by fear, and hinged on haste,” said Lloyd Doggett of Texas at a news conference Tuesday.

“I think every single member of Congress understands the urgency of this matter and we all want to resolve it, but ladies and gents let me be clear, just because we have an urgent situation doesn’t mean we don’t have to be deliberative,” added Elijah Cummings of Maryland.

WASHINGTON (CNN) — The Federal Deposit Insurance Corporation wants a temporary increase in its $100,000 insurance cap, FDIC chairwoman Sheila Bair said Tuesday.

“Unfortunately, there is an increasing crisis of confidence that is feeding unnecessary fear in the marketplace,” Bair said. “To address this crisis of confidence, I do believe that it would be helpful for the FDIC to have the temporary ability to raise deposit insurance limits.”

WASHINGTON (CNN) — Giving Treasury Secretary Henry Paulson unlimited control over $700 billion to bail out the financial sector is unacceptable, a Democratic congressman said Tuesday, arguing that the Bush administration already has “substantial power” to develop solutions.

“I have very little confidence in Mr. Paulson,” Rep. Peter DeFazio, D-Oregon, said at a news conference with several other House members, who want Wall Street, not taxpayers, to bear the burden of the bailout.

He said the crisis can be resolved with market discipline and regulatory functions, which would open up lending opportunities for banks and other institutions.

ISLAMABAD, Pakistan (CNN) — The leader of Pakistan’s Taliban, Baitullah Mehsud, is dead from kidney failure, sources tell CNN.

An unnamed Islamabad-based source with connections within the Mehsud tribe in South Waziristan told CNN that Mehsud died around 1 a.m. Wednesday. Military officials in the field confirmed to CNN that Mehsud had died.

Earlier reports said the leader of the Taliban in Pakistan was ill and was expected to die within a day. He is said to have succumbed to kidney failure and was believed to be around 34 years old.

The Pakistan government blamed Mehsud for the December 27, 2007, assassination of former Prime Minister Benazir Bhutto.
–From CNN’s Zein Basravi

WASHINGTON (CNN) — The man who bankrolled most of the “free benefits” that Alaska Sen. Ted Stevens is on trial for allegedly trying to hide took the stand Tuesday.

Bill Allen, an Alaska oil industry kingpin, is the state’s star witness against the senator. Stevens, the Senate’s longest-serving Republican, has pleaded not guilty to a seven-count indictment for filing false statements on mandatory financial disclosure forms.

Prosecutors say the annual forms should have included hundreds of thousands of dollars in gifts from Allen, who founded the Veco Corporation — an oil field contractor and Alaska’s biggest employer. The firm was not known for residential construction, but a series of former workers have testified Allen and top aides directly asked them to work on the Stevens family chalet in the ski town of Girdwood outside Anchorage.

–From CNN’s Paul Courson

WASHINGTON (CNN) — The servers hosting the Web sites of the House of Representatives and its members have been overwhelmed with millions of e-mails in the past few days, forcing administrators to implement the “digital version of a traffic cop” to handle the overload — for the first time ever.

“This is unprecedented,” said Jeff Ventura, communications director for the House’s chief administrator.

The tidal waves of e-mails and page views began over the weekend after negotiators announced Sunday that a deal had been reached on legislation to enact a $700 billion bailout of the country’s financial system. Legislators said the public could view the agreement at financialservices.house.gov.

“In a short period of time, lots of Web users were rushing to the digital doorway to get a copy of this thing,” Ventura told CNN in a phone interview. That resulted in many of them getting a message saying, in effect, “this page does not appear.”

(CNN) — Americans drove 3.6 percent less in July 2008 than they did during July 2007, Transportation Secretary Mary E. Peters said Tuesday.

That translates into 9.6 billion fewer miles driven, she said.

Since last November, Americans have driven 62.6 billion fewer miles than they did over the same nine months in 2007, according to data collected by the department.

Over the same period, public transit ridership rose 11 percent, and in July, Amtrak carried more passengers than in any single month in its history, Peters said in a news release.

WASHINGTON (CNN) — A Democratic senator expressed optimism Tuesday about the fate of the financial bailout bill defeated in the House on Monday.

“We will get through this. People are well-motivated. Everybody knows the stakes are enormous,” said Sen. Kent Conrad of North Dakota, who chairs the Senate Budget Committee.

He made the comments to CNN as he joined an afternoon meeting of other Democrats seeking consensus on a bill based on the Bush administration plan to provide $700 billion to calm the financial sector.

Conrad said no decisions have been made, but options are being circulated among lawmakers and the administration.

BAGHDAD, Iraq (CNN) — A bomb detonated in a parked car near a crowded central Baghdad restaurant at lunchtime Tuesday, killing four civilians and wounding nine, an Interior Ministry official said.

The bomb struck in the Karrada district, and most of the victims were eating lunch on the first day for Sunni Muslims of the five-day Eid al-Fitr holiday.

Eid al-Fitr, which begins for Shiite Muslims on Wednesday, marks the end of the holy month of Ramadan. Many people in Baghdad celebrate the holiday by eating and shopping in the Karrada district.

On Sunday, two bombs — one in a car and one in a suicide bomber’s vest — exploded in the same district, killing and wounding scores of Iraqis getting ready for the holiday.

NEW ORLEANS, Louisiana (CNN) — Federal authorities will conduct an investigation into the shootings of unarmed civilians, allegedly by seven police officers, on a New Orleans bridge in the aftermath of Hurricane Katrina, officials said Tuesday.

In August, a judge dismissed state charges against the seven, six of whom are still police officers.

The Department of Justice’s Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Louisiana and the FBI’s New Orleans office issued a statement saying they plan to conduct “an independent and thorough review” of the incident on the Danziger Bridge.

The shootings occurred September 4, 2005, just after Hurricane Katrina slammed into the Gulf Coast. Two men were killed and four were wounded as they were attempting to evacuate by crossing the Danziger Bridge over the Industrial Canal in eastern New Orleans.