House rejects Paulson plan, stocks plunge

The House of Representatives, the lower house of the US Congress, has rejected US Treasury secretary Hank Paulson's plan to buy up to $700 billion-worth of distressed assets.

The Dow Jones Industrial Average of leading US shares plummeted by more than 700 points on the news but recovered slightly and was down by 511 points (4.59%) at 10,632 as of 14:50 New York time.

Lawmakers voted 228-to-205 against the bill on Monday afternoon.

Earlier in the day, politicians appeared to have agreed to back