'Congress apparently does not understand the stakes'The stunning rejection by the US House of Representatives of treasury secretary Henry Paulson's $700bn mortgage bail-out left Wall Street reeling, and raised speculation that central banks This is a list of central banks. Contents A B C D E F G H I J K L M N O P Q R S T U V W Y Z would be forced to cut interest rates to shore up confidence in the financial system. Wall Street suffered its biggest ever intra-day drop of 700 points - or 7% - after Republicans in the House threw out the treasury secretary's plan to try to draw a line under the current financial crisis. Nick Parsons, head of markets strategy at NAB Capital in London, said rejection of the bill meant central bankers would fall back on more traditional means of oiling the markets. "The failure of this package significantly enhances the chances of bringing forward interest rate cuts." In dramatic trading, investors raced to safe-haven assets. Gold jumped 3% to more than $915 an ounce, while 30-year treasury bonds jumped, as did European government debt, as investors failed to be reassured by a move earlier in the day by the world's central banks to pour billions of pounds into the financial markets to shore up confidence. The bail-out, the greatest intervention in the financial markets since the Great Depression, had been seen as crucial to ending uncertainty about the toxic assets that are weighing heavily on the financial system. The Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. , the key barometer of Wall Street, collapsed after the Republicans refused to endorse the plan last night. As horse trading began to win a rethink, shares endured a roller coaster ride. The Dow Jones initially gave back some losses before sinking again. TJ Marta, a fixed income strategist with RBC Capital Markets RBC Capital Markets is the corporate and investment banking division of Royal Bank of Canada ("RBC"). Broker dealers Depending on the jurisdiction, the division uses different broker dealer subsidiaries of RBC:
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , said: "Congress apparently doesn't understand the stakes. The only ray of light is that the horse trading is not over and some of the no-voters could switch." London markets were closed when the rejection came through. But futures contracts indicated that the FTSE 100 index FTSE 100 Index A market-weighted index of the 100 leading companies traded in Great Britain on the London Stock Exchange. The Financial Times of leading shares would open more than 250 points lower. The drop would come on top of the eighth largest fall in London recorded yesterday after a turbulent day of trading, following the nationalisation n. 1. same as nationalization. Noun 1. nationalisation - the action of forming or becoming a nation nationalization group action - action taken by a group of people 2. of Bradford & Bingley and a wave of banking collapses in Europe and the US. The FTSE FTSE A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times. Notes: The FTSE is similar to Standard & Poor's in the United States. 100 lost 5% of its value to close at 4,818 before the drama in the US. Stephen Berte of Standard Life in Boston was stunned at the bail-out's collapse. "Disaster was predicted if it didn't pass ... and it didn't pass. I can't see what the upside is right now". Parsons said the Federal Reserve and the US treasury had played a high stakes game that had backfired. "They have talked up the downside risk Downside Risk An estimation of a security's potential to suffer a decline in price if the market conditions turn bad. Notes: You can think of this as an estimate of the amount that you could lose on a stock or other investment. so much to get this passed. If they fail to get this passed, they have ensured those risks will materialise. It is pretty poor politics." 
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