Republicans block US financial bailout

Several Republican members of the US Congress have reportedly blocked the government’s US$700 billion bailout of the US financial industry.



The proposal would have seen the government buy bad debts from US banks.



But after talks with President George W Bush, the Republican Committee reportedly objected to the principle of the plan.



The Republican critics of the bailout plan worry about both its cost and how it would involve the government in the financial sector.



Instead, they want a government-backed insurance policy for the huge amounts of bad debt accumulated by US banks.



Without a swift rescue package more finance companies are expected to collapse, causing more serious damage to the global economy.



Both sides have agreed to resume talks later today.