Not surprisingly, financial stocks were among the biggest losers of Monday's session after the House of Representatives voted down the $700 billion rescue bill aimed at increasing lending between banks.

The major averages fell hard after the proposal, championed by Treasury Secretary Henry Paulson and

Federal Reserve

Chairman Ben Bernanke, failed to garner sufficient votes. Investors quickly pulled money from the troubled financial sector due to fears that financial markets would seize.

Consequently, the financial components of the

Dow Jones Industrial Average

were among its worst performers as the index plummeted a whopping 6%.

American Express

(AXP) - Get American Express Company Report

and

Bank of America

(BAC) - Get Bank of America Corp Report

fell more than 17% each, while

JPMorgan Chase

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

slid 6.9% and

Citigroup

TheStreet Recommends

(C) - Get Citigroup Inc. Report

was losing 5.9%.

Wachovia

(WB) - Get Weibo Corp Sponsored ADR Class A Report

was the worst financial performer of the day, by far. The North Carolina-based bank dropped more than 81% after Citigroup agreed to buy Wachovia's banking operations for $2.1 billion in a deal arranged by the Federal Deposit Insurance Corp.

National City

( NCC) shares, meanwhile, lost 63.4% amid increasing speculation it would be the next financial firm to be seized by the FDIC.

Among other financial losers, troubled insurer

AIG

(AIG) - Get American International Group, Inc. Report

slumped 20.6% to $2.50,

Morgan Stanley

(MS) - Get Morgan Stanley (MS) Report

dropped 15.2% to $20.99, and

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

was down 8.3% to $126.54.