Both House and Senate have been at work today to create an alternative bailout bill after the modified Paulson plan went down in a surprising House vote Monday. With both liberal and conservative members (and constituents) rejecting the biggest government bailout of private industry in history, neither party’s leadership was able to whip enough people into acquiescence. The Dow tumbled more than 700 points Monday afternoon, but regained several hundred Tuesday. The new bailout bill, originating in the Senate, will be attached to a tax-break extender, and will require 60 votes to pass instead of a simple majority. The high threshold was part of the deal for getting it to the floor on Wednesday, according to reports. The House has already rejected the energy and business tax breaks this new version of the bailout will be attached to, but the Senate is also set to add important AMT relief, which would be palatable for both House Dems and Republicans. The new version of the bailout is also said to include an increase in the FDIC cap, from $100,000 to $250,000, and possible reforms to “mark-to-market” rules, which “require banks and other financial institutions to adjust the value of their assets to reflect current market prices, even if they plan to hold the assets for years.” House Republican leader John Boehner has already said he backs the new bill, the text of which is not available in any form yet, as far as I can tell:

Some of the tax relief, however, has House Democrats iffy: