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The key stock reading was down nearly 600 points with about 15 minutes of trading left.
The measure, which is designed to get battered U.S. credit markets working normally again, needed 218 votes for passage. But it came up 13 votes short of that target, as the final vote was 228 to 205 against. About 60% of Democrats and fewer than 33% of Republicans voted for the measure.
President Bush, who earlier in the day said he was confident the bill would pass, is "very disappointed" by the House vote. He said the administration would continue to attack the nation's economic problems "head on."
The Treasury Department, which will work with regulators and "use all the tools at our disposal, as we have over the last several months, to protect our financial markets and our economy," according to a Treasury spokeswoman...
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