In a vote that shook the government, Wall Street and markets around the world, the House on Monday defeated a $700 billion emergency rescue for the nation's financial system, leaving both parties and the Bush administration struggling to pick up the pieces. The Dow Jones industrials plunged nearly 800 points, the most ever for a single day.

"We need to put something back together that works," a grim-faced Treasury Secretary Henry Paulson said after he and Federal Reserve Chairman Ben Bernanke joined in an emergency strategy session at the White House. On Capitol Hill, Democratic leaders said the House would reconvene Thursday in hopes of a quick vote on a reworked version.

All sides agreed the bill could not be abandoned.

On Monday, not enough lawmakers were willing to take the political risk -- just five weeks before the elections -- of backing a deeply unpopular measure that many voters see as an undeserved bailout for Wall Street.

The bill went down, 228-205, even though Paulson and congressional leaders proclaimed a day earlier that they had worked out an acceptable compromise in marathon weekend talks.

Lawmakers were caught in the middle. On one side were the dire predictions from Bush, his economic team, and their own party leaders of an all-out financial meltdown if they failed to approve the rescue. On the other side: a flood of protest calls and e-mails from voters threatening to punish them at the ballot box.

The House Web site was overwhelmed as millions of people sought information about the measure.

The legislation the administration promoted would have allowed the government to buy bad mortgages and other sour assets held by troubled banks and other financial institutions. Getting those debts off their books should bolster those companies' balance sheets, making them more inclined to lend and easing one of the biggest choke points in a national credit crisis. If the plan worked, the thinking went, it would help lift a major weight off the national economy, which is already sputtering.

Stocks started plummeting on Wall Street even before Monday's vote was over, as traders watched the rescue measure going down on television. Meanwhile, lawmakers were watching them back.

As a digital screen in the House chamber recorded a cascade of "no" votes against the bailout, Democratic Rep. Joe Crowley of New York shouted news of the falling Dow Jones industrials. "Six hundred points!" he yelled, jabbing his thumb downward.

The final stock carnage was 777 points, far surpassing the 684-point drop on the first trading day after the Sept. 11, 2001, terror attacks.

"Every member of Congress and every American should keep in mind that a vote for this bill is a vote to prevent economic damage to you and your community," said Bush, fully aware that congressional passage of the $700 billion compromise legislation is far from assured.

"With this strong and decisive legislation," he said, "we will help restart the flow of credit so American families can meet their daily needs and American businesses can make purchases, ship goods and meet their payrolls."

Two leading players in the negotiations also spoke early Monday, taking to television news shows to lobby for approval of a package deeply unpopular with a public angry that taxpayer money will save Wall Street firms from heavy risk-taking. Thousands of angry phone calls, e-mails and letters have poured into Capitol Hill from constituents.

But Sen. Chris Dodd, D-Conn., said that failure to act would spread the contagion of frozen credit markets even further. "This is not just about Wall Street," said the Banking Committee chairman.

Sen. Judd Gregg, R-N.H., who represented fellow Republicans in the hard-fought 10 days of talks that culminated in a deal early Sunday morning, called it a "tourniquet" for the ailing financial industry and slow-moving economy.

Still, both men said the necessity of such massive government action is a sad day for the nation. Asked if the legislation, slated for a vote in the House later Monday and a Senate vote as early as Wednesday, would pass, Dodd said only: "We hope so."

These players were speaking not just to rank-and-file lawmakers to whom the spotlight now turns in this contentious, dramatic debate, but to U.S. and global markets which have displayed nervousness about Washington's determination to act.

Wall Street fears the government's plan to buy up toxic debt wouldn't be sufficient to resuscitate nearly frozen credit markets.

Investors also reviewed the buyout at Wachovia. The Federal Deposit Insurance Corp. said Monday Citigroup Inc. will acquire Wachovia's banking operations and that the deal protects Wachovia debtholders — a welcome prospect for investors given the strains in the credit markets. Investors had been worried about Wachovia's stability as it grappled with mounting losses over souring mortgage debt. Citi rose 69 cents, or 3.4 percent, to $20.84.

Investors appeared to find some reassurance in a move by the Federal Reserve and other countries' central banks to pump money into the world's credit markets. The Fed said it would boost the amount of 84-day cash loans available to U.S. banks to $75 billion, up from $25 billion. The plan will triple the supply of 84-day loans to $225 billion from $75 billion.

The news comes as President Bush and congressional leaders looked to shore up support for the rescue measure, which they and many on Wall Street believe is a difficult but necessary step to revive moribund credit markets. Banks and other financial houses are hesitant to lend to one another because of fears about bad mortgage debt on companies' books.

Tight lending conditions make it hard and expensive for businesses and consumers to get loans, which can hurt the economy.

U.S. District Judge James Gwin in Cleveland issued a temporary restraining order forcing Madison County to follow Secretary of State Jennifer Brunner's instructions. The county had said that, one the advice of its county prosecutor, it was not going to allow same-day voting during the six-day window that runs through Oct. 6.

It was the first of three court decisions involving an early voting window that has become a highly partisan battle.

Both Democratic presidential candidate Barack Obama's campaign and the Republican National Committee have urged supporters in Ohio to use the early voting. But there are Republican-backed lawsuits against it.

The state GOP has filed a statewide challenge to the voting window in federal court in Columbus. A hearing was scheduled for Monday.

Two GOP-backed voters also have filed a lawsuit in the Ohio Supreme Court, which could rule Monday.

The two lawsuits argue that Ohio law requires voters to be registered for at least 30 days before they cast an absentee ballot. Republicans have said Ohio law doesn't allow same-day registration and voting, and have accused Brunner, a Democrat, of reading a partisan interpretation into law to benefit her own party.

The disputed voting window results from an overlap between Tuesday's beginning of absentee voting 35 days before Election Day, and the Oct. 6 end of voter registration period.

But two recent critiques of his opinion in the landmark decision guaranteeing people the right keep guns at home for self-defense are notable because they come from respected fellow conservative federal judges.

The judges, J. Harvie Wilkinson of the 4th U.S. Circuit Court of Appeals in Richmond, Va., and Richard Posner of the 7th U.S. Circuit Court of Appeals in Chicago, take Scalia to task for engaging in the same sort of judicial activism he regularly disdains.

Wilkinson was interviewed by President Bush in 2005 for a Supreme Court vacancy. His article strongly suggests that the 5-4 decision in Heller v. District of Columbia would have come out differently if he had been chosen for the court. Bush's appointees to the high court, Chief Justice John Roberts and Justice Samuel Alito, joined Scalia's opinion.

The district's elected government is trying to figure out how to maintain restrictions on gun possession in the wake of the court ruling that struck down its 32-year-old ban on handguns. The D.C. council voted this month to let residents own most semiautomatic pistols and eliminate a requirement that guns be stored unloaded or secured with trigger locks.

Congressional critics said the city did not go far enough. The House passed a bill, backed by the National Rifle Association, that broadens the rights of city residents to buy and own firearms. The Senate has yet to act.

Wilkinson said elected officials are in a better position to determine gun laws than the courts. He compared the gun case to Roe v. Wade, the abortion rights decision that conservatives consider among the court's worst.

"Heller represents a triumph for conservative lawyers. But it also represents a failure — the Court's failure to adhere to a conservative judicial methodology in reaching its decision," Wilkinson wrote in an article to be published next year in the Virginia Law Review. "In fact, Heller encourages Americans to do what conservative jurists warned for years they should not do: bypass the ballot and seek to press their political agenda in the courts."

The guns case was easily the most significant opinion Scalia has written in his 22 years on the court. Yet Wilkinson faults the justice for falling victim to the same criticism Scalia leveled in a scathing dissent in the court's 1992 decision that reaffirmed the right to an abortion.

The full 10th U.S. Circuit Court of Appeals will hear arguments Thursday as judges review a decision overturning Joe Nacchio's April 2007 conviction.

Prosecutors argued he sold $52 million worth of stock when he knew Denver-based Qwest Communications International Inc. was at risk while other investors did not.

In March, a three-judge panel of the appeals court ruled that the trial judge improperly barred testimony from a defense witness. Prosecutors sought a review by the full appeals court, which granted the request.

Still pending is a civil lawsuit the Securities and Exchange Commission filed against former Qwest executives, including Nacchio.