Back to the drawing board in the US

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Back to the drawing board in the US

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It’s back to the drawing board in the US as the country struggles to contain its spiralling financial turmoil.

Yesterday, lawmakers threw out a 500 billion euro bail out for America’s banks, leaving Washington and Wall Street reeling.

Concerns over the content and the timescale for deployment meant the House of Representatives voted no.

Politicians from both sides have called for more talks. Congress is due to reconvene on Thursday.

President George W Bush urged congressional leaders to act as quickly as possible and pass rescue measures in some form:

“I am disappointed with the vote of the US Congress on the economic rescue plan. We put forward a plan which was big because we have a big problem. I am going to be talking to my economic advisors and will be working with members of congress, leaders of Congress on a way forward. “

The White House says Bush will make a statement on the crisis later today, which is likely to include details of the revised plan to be presented to Congress.

Analysts say without a bail-out plan, banks will be left to handle their own bad mortgage debt, putting more of them at risk of going to the wall and bringing the country closer to economic collapse.