In a moment of historic drama in the Capitol and on Wall Street, the House of Representatives voted 228-205 to reject a $700 billion rescue of the financial industry.
Without the bailout plan they invented and lobbied for, the Federal Reserve and the Treasury Department are forced to dig deep to rescue the global financial system.
AP - In a vote that shook the government, Wall Street and markets around the world, the House on Monday defeated a $700 billion emergency rescue for the nation's financial system, leaving both parties' lawmakers and the Bush administration scrambling to pick up the pieces. Dismayed investors sent the Dow Jones industrials plunging 777 points, the most ever for a single day.
AP - The failure of the bailout package in Congress literally dropped jaws on Wall Street and triggered a historic selloff — including a terrifying decline of nearly 500 points in mere minutes as the vote took place, the closest thing to panic the stock market has seen in years.
AP - The house always wins, gamblers are warned, and the U.S. House made John McCain pay Monday for his politically risky, high-profile involvement in a financial rescue plan that came crashing down, mainly at the hands of his fellow Republicans.
The fate of the government's $700 billion financial bailout plan was thrown into doubt Monday as the House rejected the measure. The defeat left the Bush administration and congressional leaders scrambling to figure out whether to renegotiate the bill and introduce it again as soon as Thursday or try other options. Stock markets reacted violently.
Stocks skidded this afternoon, with the Dow's nearly 778-point drop being the worst single-day point loss ever, after the House rejected the government's $700 billion bank bailout plan.