U.S. House Rejects Bailout Bill

On a vote of 207 to 226, the U-S House Monday rejected the $700 billion dollar bailout package

There was a huge selloff on Wall Street, as investors watched the House vote on the financial bailout package. As it started to appear likely that the plan would go down to defeat, the Dow plunged by nearly 700 points. It recovered to a drop of some 460 points, but bank stocks are among the most active on the Big Board at this hour.

In Ohio, National City shares were down almost 50 percent in midday trading on another tough day for the nation’s financial sector.

National City Corp. shares were down $1.79, or 48 percent, to $1.92 Monday afternoon. The sharp decline comes after shares closed down 26 percent on Friday.

National City was one of several regional bank stocks to tumble. It’s been hit hard this year by high-risk mortgage loans and was forced to arrange a $7 billion capital infusion in April.

National City spokeswoman Kelly Wagner Amen says the stock decline is an irrational reaction to problems at other larger banks such as Wachovia Corp., which will be acquired by Citigroup Inc. At 2:00 pm, the Dow was as follows: 30 industrials 10690.81 down 452.32 or -4.06 percent 20 transportation 4514.92 down 235.94 or -4.97 percent 15 utilities 427.81 down 17.30 or -3.89 percent 65 stocks 3773.74 down 170.00 or -4.31 percent