The House’s surprising rejection of the financial sector rescue proposal sent stocks tumbling yesterday afternoon, triggering one of the worst market days in history and stamping out more than a trillion dollars in shareholder wealth.

Real Estate Disposition Corporation, an Irvine, California-based real estate auction company, raised $38,000 in a two-minute auction of nine guitars autographed by the rock band, REO Speedwagon. The auction preceded an REO Speedwagon performance at the 5th Annual Five Star Default Servicing Conference & Expo at the Hilton Anatole in Dallas.

Wingspan Portfolio Advisors LLC, a Dallas area-based mortgage servicing specialist, announced yesterday that it has opened its doors to assist lenders and servicers plagued by seriously delinquent loans.

Treasury Secretary Henry Paulson and Congressional leaders worked late into the nights over the weekend and have finally reached a bipartisan agreement on the specifics of the bailout legislation. According to Senate Majority Leader Harry Reid, a real breakthrough didn’t come until 11:30 p.

Just weeks after the government stepped in and took control of the country’s largest mortgage financiers, the two companies, Freddie Mac and Fannie Mae have received federal grand jury subpoenas from the U.

Wachovia announced today that it intends to sell its retail bank, corporate, and investment bank, as well as its wealth management businesses to Citigroup. Wachovia Corporation will remain a public company with two main operating subsidiaries – Wachovia Securities, the nation’s third largest brokerage firm, and Evergreen Asset Management – the bank said in a press statement.

The new bailout legislation was seen as a breakthrough in bipartisan consensus early this morning, but by this afternoon, it was abruptly struck down, as it came up 13 votes short of passage. The final House vote was 228 to 205 against the measure.

Top U.S. financial institutions tried harder in the second quarter to modify problem loans, according to a recent report by federal agencies. The Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) have issued a joint mortgage metrics report, in which they found that actions by national banks and thrifts to prevent home mortgage foreclosures increased faster than their new foreclosures during the second quarter of 2008, despite an overall decline in mortgage credit quality.

JPMorgan Chase & Co. announced last night that it has acquired all deposits, assets, and certain liabilities of Washington Mutual’s banking operations from the Federal Deposit Insurance Corporation (FDIC) for $1.

Freddie Mac announced changes to its organization and senior management today. The mortgage backer said the modifications will enable the company to help stabilize the housing finance system and position it to take advantage of business opportunities in the market over the longer term.