Wall Street Bailout Plan Defeated In House
A $700 billion bailout plan for Wall Street - the result of closed-door deal-making on Capitol Hill over the weekend - failed to muster enough support in the House of Representatives today, with a vote of 228-205 against the controversial measure. A total of 95 Democrats and 133 Republicans voted “no.”
Supporters of the plan fervently tried to get the opposition on board, keeping the vote open much longer than the standard 15-minute time frame. But even those efforts failed.
When news of the bill’s defeat became known, the response from the financial markets was swift. The Dow Jones Industrial Average plunged by more than 700 points at one point, with both the Nasdaq and the Standard & Poor’s 500 Index dropping nearly 7%. Tremors of panic were seen with regional banks, as well, with shares in National City falling 66% to their lowest since April 1982.
The legislation, titled the “Emergency Economic Stabilization Act,” would have given the federal government an immediate $250 billion to buy up troubled assets from investment banks and financial services companies as a way to shore up the ailing economy. The final version of the bill also included a cap on golden parachutes received by executives whose companies participated in the bailout program.
Supporters of the bailout package say they intend to bring the bill up for consideration again in the immediate future.
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