And economists warn the economic effects will be felt quickly if 600 billion in automatic tax increases and spending cuts begin to take effect next year. At this rate, it looks like lawmakers will celebrate new years eve at work if not resolving the fiscal cliff, at least trying to avoid the blame. Darren gersh, nbr, washington. Susie going over the fiscal cliff will not only have an impact on the national level, it will also hit states and eventually cities. If lawmakers fail to reach a deal before january 1, the cliffs across the board spending cuts and tax increases will impact how much money states get from the federal government. Ruben ramirez reports from washington. Reporter we all know the numbers. Failing to reach a deal by january 1 will result in 109 billion in automatic cuts to federal spending. And while thats a big number, what matters most to states and municipalities is the small print, detailing just where those cuts will happen. And Standard Poors gabe pettek says tho
And economists warn the economic effects will be felt quickly if 600 billion in automatic tax increases and spending cuts begin to take effect next year. At this rate, it looks like lawmakers will celebrate new years eve at work if not resolving the fiscal cliff, at least trying to avoid the blame. Darren gersh, nbr, washington. Susie going over the fiscal cliff will not only have an impact on the national level, it will also hit states and eventually cities. If lawmakers fail to reach a deal before january 1, the cliffs across the board spending cuts and tax increases will impact how much money states get from the federal government. Ruben ramirez reports from washington. Reporter we all know the numbers. Failing to reach a deal by january 1 will result in 109 billion in automatic cuts to federal spending. And while thats a big number, what matters most to states and municipalities is the small print, detailing just where those cuts will happen. And Standard Poors gabe pettek says tho
Captioning sponsored by wpbt this is n. B. R. Susie good evening, everyone. Im susie gharib. Tom will be along a little later in the program. Lastminute christmas sppers filled the stores today, but will it be enough to push retailers into the green this Holiday Season . The clock is ticking to the fiscal cliff deadline, but with those talks on hold, so is the santa claus rally on wall street. And theyre a rare breed in corporate america. We look at why so few c. E. O. s are women. That and more, tonight on nbr. Susie not a very merry day of trading on wall street today. It was a holiday shortened session, and the investors and traders working on this half day were playing it safe, especially with the fiscal cliff talks on holiday break as well. When the closing bell rang at 1 00 eastern time, the dow was down 51 points, the nasdaq lost eight, and the s p was off 3 points. So while wall street worked half a day, washington was on vacation. Lawmakers are increasingly pessimistic about a
Susie entirely without legal merit, thats what standard and poors is calling a potential lawsuit by the department of justice, for s ps mortgage bond ratings ahead of the financial crisis. These charges come five years after the financial crisis and would be the first alleging illegal behavior by a major Ratings Agency. As darrensh ger reports g, s p is fighting back. Reporter what took so long . Thats the reaction from critics who have long argued standard and poors gave a stamp of approval to flawed Mortgage Securities that helped bring on the financial crisis. It has to do with the unique role that ratings agencies play in the entire system of selling and distributing securities and the claims that they made about their role for which they were paid handsomely. Reporter in a statement, standard and poors said the Justice Departments lawsuit had no legal or factual merit. Saying it would disregard the central facts that s p reviewed the same subprime mortgage data as the rest of the
What s p claimed at the time it stamped securities triple a. The ratings agencies claim that they have unique analytic abilities and very sophisticated models that enable them to determine the credit worthiness of a bond, a derivative, a security. Reporter s p points out Court Rulings have dismissed what it called challenges to a Credit Rating made with 20 20 hindsight. If the Justice Department does sue, standard and poors says it will vigorously defend itself. Darren gersh, n. B. R. , washington. Tom still ahead, tonights word on the street consumers, the street. Coms David Peltier joins us with some Consumer Product stocks, worth shopping for now. One trading session after topping 14,000 the Dow Jones Industrial average turned back, thanks to analyst downgrades of dow stocks walmart and chevron. The blue chips fell 129 points, the nasdaq lost 48 points, the s p off 17. 5 points. Susie Big Stock Market selloffs like todays, are rough for Retail Investors. Thats especially true becaus