US House throws out bailout plan

WASHINGTON: The $700 billion US bailout bill failed to clear the House on Monday, triggering a mad scramble for a fresh plan to rescue a beleaguered financial market and prevent a global stock meltdown yesterday.

US President George W. Bush warned that failure to act to save the rescue plan would inflict "painful and lasting damage to the economy".

"Congress must act," Bush demanded in brief comments yesterday at the White House.