 |
Republican debt plan vote delayed
 |
CBC News- A vote in the U.S. House of Representatives on the latest plan for cutting spending and lifting the debt limit was delayed Thursday as Republican leaders tried to rally more support.
The vote on House Speaker John Boehner's bill was expected at about 6 p.m. ET, but it was postponed.
Boehner's spokesman, Michael Steel, told The Associated Press it was "a sensible assumption" that Boehner was still trying to round up the needed votes. Steel suggested the vote would still happen Thursday, but did not provide a timeline.
So-called Tea Party Republicans want bigger spending cuts than Boehner proposes, and may also be holding out for a constitutional amendment requiring a balanced budget. Many Republicans were seen going in and out of Boehner's office Thursday evening after the vote was postponed, CNN reported.
Republican leaders have been trying to line up the 216 votes the debt bill would need to pass the House, and they have encountered opposition from some conservatives. There are 240 Republicans in the House. Few, if any, Democrats are expected to support the measure.
Even if it does pass, Boehner's bill is expected to be voted down by the Democratic majority in the U.S. Senate, and even if it could pass the Senate, it would face a White House veto threat.
The Treasury Department has insisted that Congress must vote to raise the government's $14.3-trillion borrowing limit by Tuesday or the country will default on its debt obligations.
Before the House vote, the chief executives of the largest U.S. financial institutions sent a letter to the White House and to members of the U.S. Congress, urging them to come to an agreement this week.
Bank of America Corp.'s Brian Moynihan, JPMorgan Chase & Co.'s Jamie Dimon, and Goldman Sachs Group Inc.'s Lloyd Blankfein and others warned that the consequences of not acting would be grave for the economy, the job market and U.S. global economic leadership.
"A default on our nation's obligations, or a downgrade of America's credit rating, would be a tremendous blow to business and investor confidence," the letter said
Banks also hold treasury bonds as assets they can easily sell. If their value falls, so does a bank's capital. That could force financial institutions to hold more cash, which in turn means less money available to lend to consumers and businesses.
Currently, U.S. banks hold a total of $1.67 trillion in treasury bonds and mortgage-backed securities combined, according to the Federal Reserve.
At an afternoon news conference, Boehner said the House would act on legislation that he called "a sincere, honest effort to end this crisis."
The House vote comes amid growing worry that a Congress divided along partisan and ideological lines might remain gridlocked past the deadline.
Nervous investors sent the Dow Jones industrial average down almost 200 points Wednesday, on top of a 92-point drop the day before.
483 page views
|
|
|
|