House Rejects $700 Billion Bailout, What it Means to You

New York Stock Exchange CEO Duncan L. Niederauer, right, and NYSE COO Lawrence Leibowitz talk on the NYSE trading floor Monday, Sept. 29, 2008. Wall Street's worst fears came to pass Monday, when the government's financial bailout plan failed in Congress and stocks plunged precipitously, hurtling the Dow Jones industrials down 777.68, or 6.98 percent to 10,365.45, in their largest one-day point drop ever. (AP Photo/Richard Drew)

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By Shannon Booth

Story Created: Sep 29, 2008 at 12:15 PM CST

Story Updated: Sep 29, 2008 at 4:45 PM CST

WASHINGTON (AP) - The House has defeated a $700-billion financial industry bailout package, despite urgent pleas from President Bush and congressional leaders from both parties.

What does that mean for me?

When the vote was tallied, too few members of the House were apparently willing to back the unpopular bill just five weeks before Election Day. Both Democrats and Republicans voted against the measure.

The bailout plan was an unpopular one, but it was one that House leaders said was necessary.

Republican Paul Ryan of Wisconsin had warned that "the worst is yet to come" without the bailout package, and added, "If we fail to do the right thing, Heaven help us."

It's been quite a jolt for the financial markets -- today's rejection by the House of Representatives of a $700-billion emergency rescue for the nation's financial system.

Stocks fell as it became clear that the plan was going down to defeat. The Dow was down about 770 points.

Oil prices have fallen more than $10 a barrel as worries that a U.S. bailout plan won't win legislative approval increase fears of a prolonged economic downturn.

Analysts say if the plan fails to win approval and the economy weakens further, consumers and businesses around the globe would likely cut back on energy use even more.

Here's how Iowa's representatives voted.

Republicans Tom Latham and Steve King voted against the plan.

Democrats Dave Loebsack and Leonard Boswell voted for it. But fellow Democrat Bruce Braley voted against it, saying the plan only benefits Wall Street CEO's and does not help working families.

Rollcall: How they voted.

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