After Congress surprisingly rejected the $700bn bail-out of Wall Street by Main Street, the U.S. stock markets tanked the most since Black Monday in 1987.
The rejected draft bill included a general but unspecified provision that the financial industry would pay for any outstanding cost for the program after 5 years. The main components include:
1) $700bn released in installments: $250bn right away, $100bn later if results were to be positive, with an option to block the remaining $350bn
2) equity warrants in return for bad asset purchase to recapitalize institutions and retain[...]