Washington  - The White House, reeling from the congressional defeat of its 700-billion-dollar plan to bail out Wall Street on Monday, was evaluating what to do next to stave off a broader economic collapse.

"It's a disappointment," Tony Fratto, a White House spokesman, told CNN. "We thought there would be enough support for this legislation."

The House of Representatives voted 228 to 205 against President George W Bush's package to rescue the crumbling financial market. The defeat came after most Republicans broke with Bush and voted against the deal.

The White House and Congress must work together on a solution to keep the economy from grinding to a halt, Fratto said.

"That's something that nobody wants to see," Fratto said. (dpa)