DJIA Drops 778 Points as Bailout Bill Fails; House to Reconvene Thursday
By Edith Orenstein, FEI Financial Reporting Blog -
The Dow Jones Industrial Average dropped a record 778 points yesterday (Mon. Sept. 29), as the U.S. House of Representatives narrowly defeated the proposed financial markets bailout legislation. As reported by AP’s Julie Hirschfeld Davis yesterday in “Shocking defeat for econ bailout; record stock dip,” the bill was defeated by a vote of 228 to 205, with 65 Republicans joining 140 Democrats in voting "yes," while 133 Republicans and 95 Democrats voted “no.” Hirschfeld added, “Bush huddled with his economic advisers about a next step. The House was to reconvene on Thursday instead of adjourning for the year as planned," and plans will be underway to workout a bill that can pass. See also “European Official Says U.S. Has ‘Special Responsibility’ to Pass Bailout” in RTT newswire, in which European Commission spokesperson Johannes Laitenberger called the failure of the House vote "disappointing," and said: "The U.S. must take its responsibility in this situation, must show statesmanship for the sake of their own country and for the sake of the world."