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US economy bailout talks collapse

By Channel 4 News

Updated on 26 September 2008

Negotiations over America's multi-billion dollar economic rescue deal descend into chaos.

Last night there was talk of an agreement, but right wing Republicans refused to sign up and now the bailout plan is stalled.

The massive Washington Mutual bank is also in trouble, its stock price wiped out by massive bad mortgage assets it has been shut down and taken over by the authorities.

Around the world central banks have pumped billions more pounds into the system but in London shares have already plunged.

And one of the UK's biggest banks, HSBC, has cut 1100 jobs .and mortgage rates are heading back up.

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