In a major setback to the Bush administration, the US House of Representatives on Monday rejected a whopping $700 billion emergency rescue package intended to bail out bankrupt American financial institutions, despite bipartisan backing by lawmakers.
The bill was trounced by a 228-205 vote, with "no votes" from both the Democratic and Republican sides.
The move sent shock waves across the financial markets, including the Wall Street, plunging stocks by 705 points.
The 110-page Bill, intended to ease a growing credit crisis, came after a frenzied week of political squabbling that culminated in an agreement between the Bush administration and Congress early yesterday.
At the time of getting into the vote there was considerable uncertainty but there was the thinking in the leaderships that the vote might just barely scrape through.
But in the end only 141 Democrats voted for the bill and were joined by 65 Republicans. And 94 Democrats voted against the measure, along with 133 Republicans.
In the House fifteen minute vote which was kept open for several minutes longer, lawmakers voted 228 to 205 to reject the plan, a clear setback not only to the White House but alsothe leadership of both parties. The Senate has not acted on the package yet.
At the time of getting into the vote there was considerable uncertainty but there was the thinking in the leaderships that the vote might just barely scrape through.
But in the end only 141 Democrats voted for the bill and were joined by 65 Republicans. And 94 Democrats voted against the measure, along with 133 Republicans.
Obama still hopeful
Democratic Presidential candidate Barack Obama, however, expressed confidence that a rejected bailout package would still get through Congress.
"They are still trying to work through this rescue package," the senator said after the House rejected the whopping USD 700-billion package.
Bush and his economic advisers, as well as Congressional leaders in both parties, who had crafted the final version of the bill after marathon closed-door negotiations, had arguedthe plan was critical to insulating people from the effects of Wall Street's bad bets.
The legislation would have allowed the government to buy bad mortgages and other failed assets held by troubled banks and financial institutions.
Some Republicans said the House Speaker Democrat Nancy Pelosi's scathing speech blaming Bush's policies for the economic turmoil during the debate did not augur well for the bill.
Vote leaves Bush disappointed
The vote has has left "disappointed" President to scramble for alternative strategies.
A White House spokesman said that President George W Bush was "very disappointed" after the bill was defeated in the
House by a 228-205 margin.
"There's no question that the country is facing a difficult crisis that needs to be addressed. The president
will be meeting with his team this afternoon to determine the next steps and will also be in touch with Congressional
leaders," Tony Fratto told reporters.
"Obviously we are very disappointed in this outcome," Fratto said.