WASHINGTON, Sept 29: The US House of Representatives on Monday rejected a massive $700 billion bailout package, delivering a severe blow to the Bush administration’s efforts to rescue troubled financial markets.

The vote was close with 228 voting against the package and 205 voting for it.

Supporters of the bill are now trying to craft a compromise plan that could get a majority vote and may pass the House on a second try later on Monday. The Senate is expected to vote later in the week.

Apparently, lawmakers from President George W. Bush’s Republican Party played a key role in failing his move.

Republicans voted 131-67 in opposition to the proposal while Democrats voted 141-94 in favour of the step. “As I said on the floor, this is a bipartisan responsibility and we think (Democrats) met our responsibility,” said House Majority Leader Steny Hoyer.

The Republicans, however, said they faced a mini-revolt within their ranks over the wisdom of the federal government interfering in the markets.

“The American people are angry,” said Congressman John Boehner, a Republican. Stocks plummeted on Wall Street even before the 228-205 vote to reject the bill was announced on the House floor. Soon after the vote, stocks plunged by over 700 points but later stabilized to a range of 400-600 points.

Earlier, a turbulent session for world markets left the FTSE 100 Index in London at its lowest level for more than three years.

House leaders pushing for the package kept the voting period open for some 40 minutes past the allotted time, trying to convert “no” votes to “yes” votes.

They argued that it was necessary to pass the bill to avoid a collapse of the economic system. Opponents said the bill might amount to throwing good money from taxpayers after bad investments from Wall Street gamblers.—Correspondent