European governments were forced to rescue a number of financial institutions hit by the US-born crisis, sending stock markets plummeting. Washington's rejection of a $700-billion bailout caused world markets to plummet.

Only a few weeks ago, banks in the euro zone financial sector were said to be safe from the US-born financial crisis, but now, as the global financial situation gradually worsens, five European governments have had to step in to prop up financial institutions.

Separately, news emerged late Monday, Sept. 29, that the US House of Representatives rejected a $700 billion measure to rescue the failing American financial system. The bailout bill was defeated after many House Republicans ignored their leaders' pleas and voted against it. A majority of Democrats voted in favor of the plan.

"I feel they've taken leave of their senses," said European Union Trade Commissioner Peter Mandelson of US lawmakers Monday in an interview with BBC, "and I hope that in Europe we will not see politicians and parliamentarians replicating the sort of irresponsibility and political partisanship that we have seen in Washington."