House Vote rejected: Dow Jones immediately fell 6 percent

The Dow Jones industrials fell more than 700 on Monday early trading as concerns grew that the bailout vote would fail, but as news broke that President Bush $700 billion bailout was rejected by congress the dow jones immediately fell 6 percent.

Congress voted 228 against 205 to go-ahead with the rescue plan, the shocking news sent the Dow Jones crashing down and it is likely the FTSE will follow in the same fate tomorrow.

It’s been reported by Sky’s Jeremy Thompson that lawmakers are going off to assess where they are going to go from here, we are probably seeing the most dramatic and financial and economic moments in modern history around the world.

Before the house breaks Republican and Democratic negotiators are continuing private talks to bring to the table a similar bill for another vote.

President Bush earlier today urged the US Congress to pass the bill but did stress that he thinks it would be a difficult vote for the members. Mr Bush when asked tonight about the rejected plan he answered by saying he was “very disappointed”.

In London the FTSE 100’s tumbled as bank worries escalate, the biggest fallers being Lloyds TSB, HBOS and RBS.

Source: skynews