The Dow Jones Industrial Average dropped by as much as 777 points during a highly volatile day Monday, as the House of Representatives failed to pass the Wall Street bailout plan during a preliminary vote.

This point drop is the single largest decrease during a day in stock market history.

Financial sectors had largely expected the measure to pass, and fears that the bill was failing caused the panicked selling that started the large losses.

The credit markets were also thrown into further turmoil as investors rushed behind treasury bills, while banks charged more to lend to one another.

Oil prices have also tumbled by more than $10 a barrel, as metal and other commodities fell sharply today on fears of a downturn.

In an effort to shore up the credit market, the Federal Reserve and foreign central banks agreed to pump billions of dollars in cash into the global financial system.

Under the short-term funding plan, the Fed will raise the maximum amount of 84-day cash loans available to U.S. banks from $25 billion dollars to $75 billion.

The Fed will also continue to make $75 billion worth of shorter, 28-day loans available, as well as send hundreds of billions to foreign banks as part of a currency exchange.

The Fed said the moves, which begin next Monday, are designed to expand the cash available to financial institutions, in an effort to unlock tight lending regulations that have gripped the current economy.

Asian and European stocks fell today as well, as investors remained skeptical about new developments.

Hong Kong's Hang Seng Index dropped 2.1 percent, while Tokyo's Nikkei index was also down.

Analysts say investors are not so much concerned with U.S. banks, as they are with fears that the global economy could plummet further, before any recovery.

While the Dow Jones tumble was dramatic, it was far from the worst percentage drop ever. On Black Monday in 1987, the average fell almost 23 percent – three times more than on Monday.

"This is a place that's been around for 250 years. If you look at percentages, it's not 'The Depression.' It's not the great crash," said one market watcher. "It's very small percentage-wise, you know what I mean? It's not a crash. It's just a blip."

Columbia political science Professor David Epstein says that the market reaction to the House vote is proof that Congress needs to eventually pass some kind of bailout.

"They do need a way to unlock the markets," said Epstein. "It doesn't have to be exactly like this. There's various ways of acting, but doing nothing, it seems to me right now, is a very bad option."

Earlier today, FDIC officials said Citigroup is acquiring Wachovia banking operations with federal aid.

According to the FDIC, Wachovia did not fail, and that all depositors are protected and there will be no cost to the Deposit Insurance Fund.

Wachovia's shares fell 27 percent in regular session trading Friday and lost another 15 percent in after-hours.

Its problems stem largely from its acquisition of mortgage lender Golden West in 2006 for roughly $25 billion.