Investors around the world held their breath yesterday as the US government's $700bn rescue plan struggled in the face of opposition from congressional members of President George W. Bush's own Republican party.
Stocks fell in Asia, Europe and in early US trading as markets, already stunned by the collapse of Washington Mutual, the largest US savings and loan group, fretted about the delay. Money markets remained under severe stress and the commercial paper market used by many companies to fund their business operations was largely frozen.
Bankers warned of a much more catastrophic response if it looked as though the deal would actually fail.