House Rejects $700B Bailout Bill

The House of Representatives failed to pass a $700 billion bill Monday afternoon to purchase troubled mortgage assets from financial institutions as two-thirds of Republicans voted against the bill and Democrats could not muster enough support to push it over the top. The final vote was 205 for passage and 228 against the bill. A close vote on the Bush administration plan was expected. However, the measure is very unpopular back home with constituents, and lawmakers were reluctant to vote for such a huge package that critics painted as a bailout for Wall Street firms and banks that profited and later got into trouble because of reckless subprime mortgage lending. The Senate was expected to pass the Emergency Economic Stabilization Act if approved by the House. Following the vote, House leaders pledged to make another effort to work together and pass a bill in the next few days -- possibly on Thursday. "What happened today cannot stand," said House Speaker Nancy Pelosi, D-Calif. "We must move forward, and I hope the markets will take that message," she said after the Dow Jones industrial average had plunged 600 points. Rep. Roy Blunt, R-Mo., said the Republicans are going to work toward a compromise that can pass and the president can sign.