NEW YORK - The stock market is plunging precipitously, with the Dow Jones industrials down as much as 700 points, as traders feared the financial bailout package would not pass the House.

As the vote was shown on TV, stocks plunged and and investors fled to the safety of the credit markets on fears that the financial system would keep sinking under the weight of failed mortgage debt.

The Dow fell 705 points, then regained some ground to trade down 462 at 10,681.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

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Stocks tumble ahead of House bailout vote

Eds: UPDATES trading. Moving on general news and financial services.

By TIM PARADIS

AP Business Writer

NEW YORK (AP) - Financial markets tumbled through another difficult session Monday ahead of a planned early afternoon House vote on an unpopular $700 billion plan to rescue troubled financial companies and as investors examined a deal for Wachovia Corp. The Dow Jones industrial average fell more than 200 points, while demand for safe-haven buying in government debt remained high ahead of the vote.

Wall Street fears the government's plan to buy up toxic debt wouldn't be sufficient to resuscitate nearly frozen credit markets.

Investors also reviewed the buyout at Wachovia. The Federal Deposit Insurance Corp. said Monday Citigroup Inc. will acquire Wachovia's banking operations and that the deal protects Wachovia debtholders - a welcome prospect for investors given the strains in the credit markets. Investors had been worried about Wachovia's stability as it grappled with mounting losses over souring mortgage debt. Citi rose 69 cents, or 3.4 percent, to $20.84.

Investors appeared to find some reassurance in a move by the Federal Reserve and other countries' central banks to pump money into the world's credit markets.

The news comes as President Bush and congressional leaders looked to shore up support for the rescue measure, which they and many on Wall Street believe is a difficult but necessary step to revive moribund credit markets. Banks and other financial houses are hesitant to lend to one another because of fears about bad mortgage debt on companies' books.

Tight lending conditions make it hard and expensive for businesses and consumers to get loans, which can hurt the economy.

While congressional leaders said they had the headcount to pass the vote - a Senate vote could come as early as Wednesday - investors were likely to be unnerved until the votes are complete.

Credit markets remained strained Monday but improved after the Fed's injection.