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US shares suffered their biggest ever fall last night after American politicians voted against a $700bn (388bn) bank bail-out.
Dow Jones collapses as Paulson bail-out fails
Asian dealing rooms opened on Tuesday with a massive deluge of selling as investor sentiment across the region reeled from Washington's stunning rejection of a $US700 billion bailout plan for Wall Street.
Asian markets nosedive after US banking bailout rejected
Ailing US banking stocks were hit by heavy selling on Monday as investors fled from regional lenders and Wall Street giants Goldman Sachs and Morgan Stanley amid growing fears of more turmoil in the sector.
Regional US banks take a mauling
All is not lost yet. The US House of Representatives may have voted against the $700 billion bank rescue plan, but governments around the world yesterday put public money to work to bail out another handful of stricken banks.
Lost vote for US bank rescue plan may strengthen recovery
The global credit crisis has slammed into Europe with stunning violence over the last two days, triggering five major bank rescues and a near total shut-down of the region's credit markets.
Banking crash hits Europe as ECB loses traction
World central banks desperately tried to stave off collapse of the global banking system yesterday with large cash injections into money markets buckling amid news of another rash of bank failures.
'They're throwing billions around but things seem to be getting worse'
The nationalisation of Bradford & Bingley will add a further 30bn to public sector debt, leaving the Government's fiscal rules in shreds and exposing the taxpayer to potentially huge losses as house prices fall and mortgage arrears increase at least 1,000 for every taxpayer, or 2 per cent of GDP.
B&B deal to add 30bn to public sector debt
Britains biggest banks will be liable for any unexpected losses from Mondays nationalisation of Bradford & Bingley, after they decided this would be better than taking the risk of bailing out the embattled mortgage lender themselves.
UK building societies angry at B&B liabilities
Question marks are hanging over the future of some of Britains biggest high street names, including Hamleys, Karen Millen and House of Fraser, after the economic crisis hit an unlikely corner of the world more than 1,000 miles from the West End. The Icelandic Government was forced to nationalise Glitnir, the countrys third-largest bank, and the ripple effect threatens to engulf nearly 20 high street brands.
Icelandic sell-off may hit British high streets