The House of Representatives has rejected the Bailout Plan with more than two thirds of Republican congressmen voting against it. Numbers say that 205 representatives agreed, while 228 were against it.
The US president, George W. Bush, said that he is "very disappointed" by the outcome of this plan designed by his own administration. After two weeks of hard negotiations, the program seemed to have acquired a consensus shape between Republicans and Democrats.
After the result, the White House said in a statement that the president will speak today at 12:45GMT on the efforts of his government to resolve the financial crisis.
Markets plummeted on the news, Dow Jones fell more than 5% and other indexes posted sharper declines. Oil prices tumbled and gold rallied as a safe haven.
Treasury Secretary, Henry Paulson spoke on the
White House after the voting to warn about the possibility of credit
for big and small business drying up which would make them unable to
pay salaries or buy inventory, while, on the other side, opponents
argued that the bill was put up in too much haste and that it could
mean using taxpayers money to pay up Wall Street’s wrong practice.
Related Links
- Read the Information Regarding Recent Federal Reserve Actions at the Fed
- The TARP plan at the Wikipedia
- President Bush Discusses Financial Rescue Legislation at the White House
In-Depth Analysis
- Daily Market Report - Yesterday proved to be one of the most volatile days in recent history by Wachovia
- House Republicans help send fear soaring by Interactive Brokers LLC
- Commodities Morning Briefing - The package that was never delivered… by Jyske Bank
- Market Directions - The Dollar Rescue by FX Solutions
- Daily Trading Forecast - USD Stable Despite "Nay" to Bailout Plan by Swiss e Trade AG
- Market Sense - Restoring faith by Yapi Kredi Bank
- Flash Comment - Total global financial crisis by Danske Bank A/S
- Sunrise Market Commentary - US Treasuries surge as Argameddon scenario draws closer by KBC Bank
- FX Weekly Commentary - Traders Gave Their Answer to Rescue Plan Rejection by Causing Mayhem in the Financial Markets…What ‘s Next? by FXGreece
- Daily Forex Commentary - "Hey Guys, let's vote NO and see what happens..." by Jyske Bank
- Overnight Briefing - U.S. Stocks plunge by Jyske Bank
- Forex Trading Strategies - Equity market swoon on TARA failure smacks carry trades for enormous losses by Saxo Bank
- Daily Forex Technical Report - Uncertainties ahead after TARP Defeat by ActionForex.com
- Daily Currency Market Focus - House Kills the Bailout Plan and the US Dollar by GFT (Global Forex Trading)
- Start the Day - US $700B rescue package rejected by politicians by Mizuho Corporate Bank
- Technical Trader Closing Brief - Historic Sell-Off! by The Technical Trader
- Daily Forex Outlook - BAILOUT REJECTED! MARKET CRASHS by Easy Forex
- Daily Forex Strategy Briefing - USD/JPY Falls as Congress Rejects Financial-Recue Plan by CMS Forex
- European and US summary - Congress Rejects Rescue Plan; Equities & USD Selloff by Forexnews.com
- Spot Forex Trades - Black Mondays by ForexSurvivor
- FX Strategy - USD: What does TARP mean for FX? by Danske Bank A/S
- Daily Currency Market Focus - Bailout Plan Fails to Impress, Traders Worried More About Dominoes Effect by GFT (Global Forex Trading)
Related News
- Obama urges bailout bill's passage, offers plan (Thomson Financial News)
- USD/JPY: The Dollar resists bailout refusal (FXstreet.com)
- EU says US must meet finance crisis responsibility (Thomson Financial News)
- No one immune to global crisis - Microsoft CEO (Thomson Financial News)
- TREASURIES-Fall in Europe, mkt cautiously optimistic on bailout (Thomson Financial News )
- EU says UK sending info on Bradford & Bingley (Thomson Financial News)
- Asian Shrs Inch Off Their Lows Despite US News (Dow Jones)
- U.S. Congress Rejects Bailout (FXstreet.com)
- European Markets In Turmoil After Rejection Of Bailout (Dow Jones)
- Dollar hits 4-mth low vs yen as investors cut risk (Thomson Financial News)
- Fed's Hoenig: maintaining dollar value still key (Thomson Financial News)
- Money market freeze stirs rate cut speculation (Thomson Financial News)
- Hoenig says Fed policy must maintain dollar value (Thomson Financial News )
- Asia FX down on U.S. bailout rejection (Thomson Financial News)
- Dollar o/n rates jump in Asia on bailout rejection (Thomson Financial News)
- EU's Mandelson: US Politicians 'Taken Leave Of Their Senses' (Dow Jones)
- US heating markets to get warm fall, cold Dec -WSI (Thomson Financial News)
- Dollar Declines As Lawmakers Defeat US Govt's Rescue Plan (Dow Jones)
Blogs
- 1st on Forex: Plan denied - Politics reigns - Accusations fly by Jerry Furst
