The US House of Representatives rejected on Monday the $700 billion rescue plan which had been initiated by the Bush administration to bail out the country’s finance sector devastated by a massive meltdown.

The measure which would have authorized the biggest government intervention in the markets since the Great Depression went down mainly due to partisan wrangling and was defeated by a vote of 228 to 205. While Democrats voted 140 to 95 in favor of the legislation, only 65 Republicans supported the bill and 133 voted against it.

The finance rescue proposal, if passed, would have set aside $700 billion for Treasury Secretary, Henry Paulson to buy up troubled assets of finance companies. This would have gone a long way in easing up the credit crunch which continues to affect the economy in the aftermath of last year’s housing market crisis.

Markets reacted strongly to the defeat of the bail-out measure. While the Dow Jones Industrial Average plunged by 778 points or 6.98% in the biggest drop ever, the Standard & Poor’s 500 Index sank by 8.4%.

Despite Monday’s defeat, it is not yet the end of the road for the finance rescue bill. Majority leader, Steny Hoyer’s announcement that the House would take up the measure again during the week thus has already started off a scramble among its backers to garner additional support.

Wachovia Corp ended days of negotiations with potential buyers by reaching a 2.16 billion deal with Citigroup Inc, the biggest bank in the United States by assets.

According to the terms of the all-stock deal, Citigroup Inc will acquire the banking operations of Wachovia Corp for $2.16 billion and will pay $1 for each share of Wachovia. However the Federal Deposit Insurance Corp has assured that all depositors will be protected. The New York-based Citigroup plans to slash its own dividends by half and raise around $10 billion in capital so as to take on the senior and subordinated debt of Wachovia. The acquisition will land Citigroup with an extensive network of Wachovia branches and offices totalling 3300 in 21 states. However, Wachovia will keep its control of the A.G. Edwards Inc brokerage and the Evergreen mutual-fund family.

Charlotte-based Wachovia Corp is the sixth largest US bank by assets but owing to overdue mortgages, the bank experienced massive collapse of its shares and was thus compelled to look for a buyer. The acquisition of Wachovia Corp is the latest development in the country’s finance sector which has been rocked by the failure of major institutions like Lehman Brothers and Washington Mutual as well as by the takeovers of Merrill Lynch and Bear Stearns Co.

In yet another sign of the financial crisis spreading from US to Europe, the British government has decided to nationalise the beleaguered mortgage lender Bradford & Bingley.

The Treasury announced on Monday, that the British government would take over the bank’s mortgage and loan books, worth 50 billion pounds or $90 billion in an attempt to maintain financial stability in the country. The government has also incurred an additional expense of 18 billion pounds or $30 billion in order to facilitate the sale of the savings business of Bradford & Bingley to Banco Santander of Spain. According to the terms of the sale, Santander would pay 612 million pounds or $1.1 billion for the complete retail network of Bradford & Bingley which includes 197 branches and deposits of 20 billion pounds.

Banco Santander is the second largest bank in Europe and its purchase of the retail division of Bradford &Bingley marks the latest instance of major financial institutions being brought back from the brink, either by acquisition or government rescue. While Fortis, the Belgian and Dutch financial firm received a boost from joined efforts by three European governments, Germany’s Hypo Real Estate Holding AG was saved from collapse by a multibillion euro line of credit from several European banks.

Fortis, the Belgian-Dutch financial services company received a breather after three European governments came together to bail out the firm from collapsing into bankruptcy.

The governments of Netherlands, Belgium and Luxembourg have agreed to jointly raise 11.2 billion euros or $16.3 billion in order to save Fortis from sinking into insolvency. The bank has been incurring huge losses in the wake of a series of credit-related write-downs. Fortis is the largest European bank so far to have been pulled down by the market crisis affecting financial sectors across the globe.

Under the terms of the bail-out package, Fortis will have to give up the sections of ABN-Amro it acquired last year. On the other hand, each country will invest in equal-sized stakes in Fortis’ banking operations of that country. Belgium for instance will buy a 49% stake in the banking units owned by Fortis for 4.7 billion euros or $6.8 billion. likewise, Netherlands is buying a similar-sized stake in Fortis’ Dutch banking units for 4 billion euros or $5.8 billion while Luxembourg plans to extend a loan of 2.5 billion euros which can be converted to a 49% stake in Fortis’ banking business in Luxembourg.

One of the major losers in the multinational bail out of Fortis will be its largest shareholder, Ping An Insurance of China.

Rhode Island is set to receive almost $20 million in federal grants from the Department of Housing and Urban Development in order to buy, redevelop or sell foreclosed properties in the region.

The Department of Housing and Urban Development has approved a grant of $19.6 million for Rhode Island which has been hit badly by the housing market crisis since last year. According to Rhode Island Senator Jack Reed of the Democrat Party, the nearly $20 million aid would enable homeowners as well as communities to stay protected from devaluing impact of foreclosed properties that fall into disrepair. In areas suffering from foreclosures, it is necessary to renovate and sell foreclosed properties since vacant properties attract crime and blight which eventually drive down real estate prices in the area.

Rhode Island has the highest rate of foreclosures in the New England region. Nationally, Rhode Island ranks sixth in the list of most foreclosed properties started during the second quarter of the current year. Around 1700 mortgage holders in Rhode Island initiated foreclosure proceedings in the three-month period ending June 30. Practically the whole of United States continues to suffer the after-effects of last year’s housing market crisis which not only led to the collapse of major mortgage lenders but left many homeowners with the prospect of foreclosed properties.

Suffering the biggest bank failure in US history, Washington Mutual Inc agreed to sell off all its deposits for $1.9 billion to JP Morgan Chase and Co.

Seattle-based Washington Mutual is one of the largest thrift of the United States. Since September 15, however, it has been facing customer withdrawals of around $16.7 billion and has been in an “unsound condition” with “insufficient liquidity” according to the Office of Thrift Supervision. This led to federal regulators seizing Washington Mutual and JP Morgan Chase buying up its deposits for $1.9 billion.

Washington Mutual had been struggling for some time against losses of $19 billion which it incurred on failed mortgage loans. The bank finally collapsed after its credit rating was slashed to junk status and potential suitors passed on making a bid after it was compelled to put it self up for sale last week.

JP Morgan Chase and Co. is the third-largest bank of United States in terms of assets. According to the terms of the deal, the New York-based bank will not acquire the liabilities of the lender including claims of shareholders as well as subordinated and senior debt holders.

The collapse of Washington Mutual comes close on the heels of the financial market meltdown which saw Wall Street giants either pass into bankruptcy or into other hands to avoid a similar fate.

Many among us are tied down to out desks all day and rarely find the time to take quick jog or used the office-gym. Daily reports on the health hazards of a sedentary lifestyle do not help matters either. Here are a few simple ways to exercise at work and stay fit –both physically as well as mentally.

Try to park your vehicle as far away from the office building. This will ensure that you walk some distance at least twice a day. If your office is nearby cycle or walk your way to work.

Take the stairs instead of the elevator for a quick workout and a healthy heart. During office breaks, walk around the halls or on streets surrounding your office. This will improve blood circulation and help you to concentrate better on your work.

If possible, exchange your regular office chair for an exercise ball. This will not only improve your posture while sitting and working on the computer but also give your core muscles a work out without you having to go anywhere.

Make it a point to visit your co-workers at the office instead of sending messages or emails. Not only will your body benefit from the movement but your boss will be happy to see you so busy.

Take regular half-hour breaks to do some neck exercises or simple lift light weights or books during any free time. Finally, do not forget to keep yourself well hydrated with lots of fluids and remember to tuck in at regular intervals on healthy snacks.

Rising living costs as well as a general slow down in the economy has meant that personal savings are at an all time low. Many families find themselves living from one pay check to another with meagre or no savings at the end of the month. Here are a few tips which might help you to make start saving and spending wisely.

The first step would be to draw up a budget oh all expenses at home. This will include costs of food, utilities, gasoline, children’s needs as well as other living expenses. Leave aside at least 5 percent of your monthly income for savings. However if you can save more than that, so much the better.

Draw up a list before you go shopping for food or other grocery items. This will not only help you to be more organized but will save you from the practice of buying something which you do not need.

Stay away from designer labels and expensive brands. Try to look for quality products at discount stores and for items not affecting health, try shopping at flea markets or second-hand stores.

Keep phone bills down by taking a pay-as-you-use connection. This will help you to keep off unnecessary or long calls and also let you keep track of how much you are spending.

Instead of going for expensive cable connections, get a basic cable line or rent DVDs at a fraction of your monthly cable bill.

Finally try to save on fuel costs by walking or cycling for short distances. For longer commutes, pool up with other car owners or go for a convenient form of public transport.

Chrysler LLC has announced that it will be laying off around 250 salaried employees at the end of this month in an attempt to cut costs after incurring losses for successive quarters.

On Thursday night Chrysler spokesperson revealed that the first stage of job cuts will affects 250 workers and is expected to begin from Friday. This is part of the company’s overall plan to cut around 1000 white collar jobs in total in order to bring about sweeping cost cutting measures. In an effort to get employees to leave voluntarily, Chrysler has been offering buyouts and early retirement packages but has been able to meet only three-fourths of its restructuring goals.

The job cuts come in the wake of continuing losses incurred by Chrysler due to falling sales of its vehicles which plunged as much as by 24 percent in the first eight months of this year. This forms part of a nation-wide decline in demand for autos as spiralling gasoline costs and an overall price rise have limited the spending power of consumers. They are thus turning more towards hybrid and fuel efficient vehicles and away from trucks and sports utility vehicles which dominate Chrysler’s line-up.

McCormick reported an increase in sales in the third quarter as customer preferred to spend on flavorings and groceries for home-cooked meals rather than eat out.

McCormick is the leading spice and seasonings manufacturer in US with a market share of around 50 percent. for the third quarter the company reported a rise in net income by 20.8 percent o $68.6 million or 52 cents a share as compared to net income of $56.8 million or 50 cents a share in the same period last year. Sales also rose from $716.2 million last year to $781.6 million which was jump of 9.1 percent.

The boost in sales was attributed to better product marketing particularly of the newer, higher-priced items, various acquisitons and its Grill Mate line of marinades. Moreover increased sales was also due to a shift in the eating habits of consumers who preferred to buy seasonings and rustle up home made meals instead of spending many times the amount on eating at restaurants. As gasoline becomes costlier and dining out more expensive, consumers reveal a pattern of going back to in-home cooking to save money and herein McCormick scores with its array of flavorings, side dishes and marinades.