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| Asia stocks fall after US failure | Asia stocks fall after US failure |
| (about 1 hour later) | |
| Japan's benchmark Nikkei stock index has fallen almost 5% in early trading, hours after a US financial rescue plan failed to gain Congressional backing. | Japan's benchmark Nikkei stock index has fallen almost 5% in early trading, hours after a US financial rescue plan failed to gain Congressional backing. |
| The US House of Representatives on Monday rejected a $700bn (£380bn) plan aimed at bailing out Wall Street. | The US House of Representatives on Monday rejected a $700bn (£380bn) plan aimed at bailing out Wall Street. |
| The Dow Jones index fell 7% and suffered its biggest ever one-day points fall, ending 778 down. | The Dow Jones index fell 7% and suffered its biggest ever one-day points fall, ending 778 down. |
| President Bush is to make a statement on the deadlock over the bail-out plan early on Tuesday morning. | President Bush is to make a statement on the deadlock over the bail-out plan early on Tuesday morning. |
| A White House spokesman said that President George W Bush was "very disappointed" by the vote's result. | A White House spokesman said that President George W Bush was "very disappointed" by the vote's result. |
| Why did the bail-out bill fail?Q&A: US $700bn bail-out plan | Why did the bail-out bill fail?Q&A: US $700bn bail-out plan |
| It came after a day of turmoil in the US and Europe, with Wachovia, the fourth-largest US bank, being bought by larger rival Citigroup, Benelux banking giant Fortis being partially nationalised three governments, and the UK lender Bradford & Bingley being nationalised as well. | It came after a day of turmoil in the US and Europe, with Wachovia, the fourth-largest US bank, being bought by larger rival Citigroup, Benelux banking giant Fortis being partially nationalised three governments, and the UK lender Bradford & Bingley being nationalised as well. |
| Now Asia is reacting to the shock, and in early trading on Tuesday, the Tokyo Stock Exchange's Nikkei-225 index fell almost 580 points to 11,163.74, a lost of 4.94% of its value in a matter of minutes. | Now Asia is reacting to the shock, and in early trading on Tuesday, the Tokyo Stock Exchange's Nikkei-225 index fell almost 580 points to 11,163.74, a lost of 4.94% of its value in a matter of minutes. |
| Australia and New Zealand saw similar precipitous losses, with the S&P/ASX-200 index shedding 5.3% in Sydney and a 4.7% fall in Wellington. | Australia and New Zealand saw similar precipitous losses, with the S&P/ASX-200 index shedding 5.3% in Sydney and a 4.7% fall in Wellington. |
| Australia's Prime Minister Kevin Rudd said he had spoken to his British counterpart Gordon Brown and they agreed to urge the US Congress to reverse Monday's decision | |
| "The attitude that we will adopt, and I believe other friends and allies of the United States will adopt, is to urge the United States Congress to pass this or a similar measure when it is represented to the Congress later this week," said Mr Rudd. | |
| Washington blockade | Washington blockade |
| The US rescue plan, a result of tense talks over several days between the government and lawmakers, was rejected by 228 to 205 votes in the House of Representatives. | The US rescue plan, a result of tense talks over several days 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. | About two-thirds of Republican lawmakers refused to back the rescue package, as well as 95 Democrats. |
| Henry Paulson: 'This is much too important to simply let fail' | |
| Treasury Secretary Henry Paulson said, after talks with the president, that the government's plan to address the crisis facing the US financial sector was much too important to be allowed to fail. | Treasury Secretary Henry Paulson said, after talks with the president, that the government's plan to address the crisis facing the US financial sector was much too important to be allowed to fail. |
| US regulators would use "all the tools available" to help the US economy, but their powers were "insufficient", he warned. | US regulators would use "all the tools available" to help the US economy, but their powers were "insufficient", he warned. |
| He added that he would be working with congressional leaders to get something done "as quickly as possible". | He added that he would be working with congressional leaders to get something done "as quickly as possible". |
| Analysts say that without a bail-out plan, the banks will be left to handle all their own bad mortgage debt as best they can and more of them will be in danger of going bust. | Analysts say that without a bail-out plan, the banks will be left to handle all their own bad mortgage debt as best they can and more of them will be in danger of going bust. |
| But after several hours of impassioned debate, the bill's opponents - the majority of whom were from the Republican Party - got their way. | But after 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. | 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. | Some agreement on issues such as oversight, greater protection for taxpayers and curbs on executive bonuses had been reached in fraught weekend talks. |
| These concessions, however, ultimately failed to persuade enough lawmakers that the plan was in the best interests of the nation. | These concessions, however, ultimately failed to persuade enough lawmakers that the plan was in the best interests of the nation. |
| Blame game | Blame game |
| The no vote plunged the world of Washington politics into turmoil, reports the BBC's Kevin Connolly from the US capital. | The no vote plunged the world of Washington politics into turmoil, reports the BBC's Kevin Connolly from the US capital. |
| Pelosi urges bipartisan approach | Pelosi urges bipartisan approach |
| So grave are the consequences of this decision, our correspondent says, that the speaker of the house paused for several long minutes after the vote was taken before declaring it official. | So grave are the consequences of this decision, our correspondent says, that the speaker of the house paused for several long minutes after the vote was taken before declaring it official. |
| "The legislation has failed, the crisis has not gone away," said Nancy Pelosi, the house's Democratic speaker. | "The legislation has failed, the crisis has not gone away," said Nancy Pelosi, the house's Democratic speaker. |
| She said that 60% of Democrats had supported the bill, and urged both sides to try again to find a resolution. | She said that 60% of Democrats had supported the bill, and urged both sides to try again to find a resolution. |
| "We must work in a bipartisan way in order to have another bite at the apple in terms of some legislation," she said. | "We must work in a bipartisan way in order to have another bite at the apple in terms of some legislation," she said. |
| HAVE YOUR SAY I am glad the bailout bill failed. I work five days a week, save cash and pay my bills. I did not want to pay for Corporate America's greed Lisa, Baltimore Send us your comments | |
| Republican leaders, meanwhile, criticised a scathing speech by Ms Pelosi about the Bush administration's economic policies for injecting partisanship into the issue and scuttling the vote. | Republican leaders, meanwhile, criticised a scathing speech by Ms Pelosi about the Bush administration's economic policies for injecting partisanship into the issue and scuttling the vote. |
| Republican house leader John Boehner said: "We could have gotten there today had it not been for the partisan speech that the speaker gave on the floor of the House". | Republican house leader John Boehner said: "We could have gotten there today had it not been for the partisan speech that the speaker gave on the floor of the House". |
| The speaker's words, he said, "poisoned our conference, caused a number of members that we thought we could get, to go south". | The speaker's words, he said, "poisoned our conference, caused a number of members that we thought we could get, to go south". |
| Republican presidential hopeful John McCain accused Democrats of infusing the debate with an unhelpful partisan approach. | Republican presidential hopeful John McCain accused Democrats of infusing the debate with an unhelpful partisan approach. |
| "Now is not the time to fix the blame, it's time to fix the problem," he added. | "Now is not the time to fix the blame, it's time to fix the problem," he added. |
| He urged members of Congress to go back to the drawing board "immediately" and work out a new deal. | He urged members of Congress to go back to the drawing board "immediately" and work out a new deal. |
| His Democratic rival Barack Obama countered that it was an outrage that ordinary people were being asked to clean up Wall Street's mess. | His Democratic rival Barack Obama countered that it was an outrage that ordinary people were being asked to clean up Wall Street's mess. |
| "If I am president I will review the entire plan on the day I take office to make sure that it is working to save our economy and (that) you get your money back," he said. | "If I am president I will review the entire plan on the day I take office to make sure that it is working to save our economy and (that) you get your money back," he said. |
| He added that he expected Congress to pass a bail-out bill in some form. | He added that he expected Congress to pass a bail-out bill in some form. |
| What is your reaction to this vote? Do you live in Asia? What effect will the latest US developments have in your country? Send us your comments using the form below: | What is your reaction to this vote? Do you live in Asia? What effect will the latest US developments have in your country? Send us your comments using the form below: |
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