HOUSE VOTES DOWN BAIL-OUT PACKAGE !
The lower house of the US Congress has voted down a $700bn (£380bn) plan aimed at bailing out Wall Street.
The rescue plan, a result of tense talks between the government and lawmakers, was rejected by 228 to 205 votes in the House of Representatives.
About two-thirds of Republican lawmakers refused to back the rescue package, as well as 95 Democrats.
Shares on Wall Street plunged within seconds of the announcement, after earlier falls on global markets.
A White House spokesman said that President George W Bush was "very disappointed" by the result.
He would meet members of his team in the coming days to "determine next steps", spokesman Tony Fratto said.
The BBC's Adam Brookes, in Washington, said Democratic leaders in the House were likely to try and convince a number of their members who voted against the bill to change their minds in coming days.
Speaking after the vote, Republican leaders in the House of Representatives suggested the Democrats were to blame, accusing them of failing to mobilise their majority in the chamber.
Democratic presidential candidate Barack Obama spoke shortly after the vote, saying it was an outrage that ordinary people were being asked to clean up Wall Street's mess.
Impassioned debate
Speaking ahead of the vote, Mr Bush had argued that the bail-out plan was a "bold" one which he was confident would restore strength and confidence to the US economy.
But after a several hours of impassioned debate, the bill's opponents - the majority of whom were from the Republican Party - got their way.
They had raised concerns about both the content of the plan and the speed with which they were being asked to pass it.
Some agreement on issues such as oversight, greater protection for taxpayers and curbs on executive bonuses had been reached in fraught weekend talks.
But these concessions ultimately failed to persuade many lawmakers that the plan was in the best interests of the nation.
The vote came as banks failed in the US, Europe and the UK.
The fourth largest US bank, Wachovia, is being bought by Citigroup after becoming the latest to hit problems.
In Europe, Benelux giant Fortis was bailed out by three governments, while in the UK the Bradford & Bingley bank was nationalised.
The US Federal Reserve, the European Central Bank and eight other central banks announced further moves to combat the crisis, by making a further $330bn available to provide liquidity to global money markets.
The rescue plan, a result of tense talks between the government and lawmakers, was rejected by 228 to 205 votes in the House of Representatives.
About two-thirds of Republican lawmakers refused to back the rescue package, as well as 95 Democrats.
Shares on Wall Street plunged within seconds of the announcement, after earlier falls on global markets.
A White House spokesman said that President George W Bush was "very disappointed" by the result.
He would meet members of his team in the coming days to "determine next steps", spokesman Tony Fratto said.
The BBC's Adam Brookes, in Washington, said Democratic leaders in the House were likely to try and convince a number of their members who voted against the bill to change their minds in coming days.
Speaking after the vote, Republican leaders in the House of Representatives suggested the Democrats were to blame, accusing them of failing to mobilise their majority in the chamber.
Democratic presidential candidate Barack Obama spoke shortly after the vote, saying it was an outrage that ordinary people were being asked to clean up Wall Street's mess.
Impassioned debate
Speaking ahead of the vote, Mr Bush had argued that the bail-out plan was a "bold" one which he was confident would restore strength and confidence to the US economy.
But after a several hours of impassioned debate, the bill's opponents - the majority of whom were from the Republican Party - got their way.
They had raised concerns about both the content of the plan and the speed with which they were being asked to pass it.
Some agreement on issues such as oversight, greater protection for taxpayers and curbs on executive bonuses had been reached in fraught weekend talks.
But these concessions ultimately failed to persuade many lawmakers that the plan was in the best interests of the nation.
The vote came as banks failed in the US, Europe and the UK.
The fourth largest US bank, Wachovia, is being bought by Citigroup after becoming the latest to hit problems.
In Europe, Benelux giant Fortis was bailed out by three governments, while in the UK the Bradford & Bingley bank was nationalised.
The US Federal Reserve, the European Central Bank and eight other central banks announced further moves to combat the crisis, by making a further $330bn available to provide liquidity to global money markets.
BBC NEWS REPORT.
posted by jackaranda at 7:53 pm
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