Political leaders will go back to the drawing board today, September 30, in an attempt to revive a financial rescue package after the Bill was rejected.
US Treasury Secretary Henry Paulson, the architect of the rejected plan, said it was vital to get a new deal agreed.
President George Bush said he was 'disappointed' over its failure of the proposals he said were necessary to stave off financial panic and a 'long and painful recession' in the US.
The House's rejection of the bail-out plan came after a day of turmoil in the US and Europe, with Wachovia, the fourth-largest US bank, being bought by larger rival Citigroup.
The US rescue plan was rejected by 228 to 205 votes in the House of Representatives.
US and European shares have already plummeted on the news, with the Dow Jones index losing 770 points in just one day - its biggest one-day point drop yet. The Nasdaq index fell 9.1 percent and London's FTSE 100 index also dropped.
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