U.S. Senate OKs McCaskill bill on financial oversight

WASHINGTON — The Senate has approved Sen. Claire McCaskill’s bill to strengthen government oversight of the $700 billion Wall Street rescue plan, but its fate in the House is uncertain.

The Missouri Democrat says the legislation — passed late Tuesday — would help lawmakers make sure bailout funds are being spent wisely.

It would give the inspector general overseeing the plan unlimited access to audit funds spent under the program. The bill also requires a study of whether banks are using the funds they get to spur additional lending.

The House could vote on the measure if it goes back in session before the end of the year.

Earlier this week, the Senate confirmed New York prosecutor Neil Barofsky to be special inspector general overseeing the program.