The Free Press, Mankato, MN

State, national news

October 16, 2013

Update: Deal reached to avoid default and open government

(Continued)

There were some dire warnings from the financial world a day after the Fitch credit rating agency said Tuesday it was reviewing its AAA rating on U.S. government debt for possible downgrade.

John Chambers, chairman of Standard & Poor's Sovereign Debt Committee, told "CBS This Morning" on Wednesday that a U.S. government default on its debts would be "much worse than Lehman Brothers," the investment firm whose 2008 collapse led to the global financial crisis.

Aides to Reid and McConnell said the two men had resumed talks, including a Tuesday night conversation, and were hopeful about striking an agreement that could pass both houses.

It was expected to mirror a deal the leaders had neared Monday. That agreement was described as extending the debt limit through Feb. 7, immediately reopening the government fully and keeping agencies running until Jan. 15 — leaving lawmakers clashing over the same disputes in the near future.

It also set a mid-December deadline for bipartisan budget negotiators to report on efforts to reach compromise on longer-term issues like spending cuts. And it likely would require the Obama administration to certify that it can verify the income of people who qualify for federal subsidies for medical insurance under the 2010 health care law.

But that emerging Senate pact was put on hold Tuesday, an extraordinary day that highlighted how unruly rank-and-file House Republicans can be, even when the stakes are high. Facing solid Democratic opposition, Boehner tried in vain to write legislation that would satisfy GOP lawmakers, especially conservatives.

Boehner crafted two versions of the bill, but neither made it to a House vote because both faced certain defeat. Working against him was word during the day from the influential group Heritage Action for America that his legislation was not conservative enough — a worrisome threat for many GOP lawmakers whose biggest electoral fears are of primary challenges from the right.

Text Only | Photo Reprints
State, national news
  • Congress racing to finish Congress races to finish veterans, highway bills

    July 31, 2014

  • Target New CEO [Duplicate] Target names Pepsi's Cornell as chairman, CEO MINNEAPOLIS (AP) — Target has hired Pepsi executive Brian Cornell as its new chairman and CEO as it looks to recover from a huge data breach and troubles in Canada. Cornell replaces interim CEO John Mulligan, who is chief financial officer for the M

    July 31, 2014 1 Photo

  • Brain wave monitoring is better gauge than using a focus group, study says To predict a large population’s likely response to something — a product, politician or policy — political consultants, marketing gurus and advertising execs have long favored the focus group. Ask a small segment of the target audience what it thinks

    July 31, 2014

  • Argentina slides into default as debt talks fail NEW YORK (AP) — The collapse of talks with U.S. creditors sent Argentina into its second debt default in 13 years and raised questions about what comes next for financial markets and the South American nation's staggering economy. A midnight Wednesd

    July 31, 2014

  • Exchange Bee Researcher [Duplicate] Bee researcher takes aim at central Minnesota park WAITE PARK — Crystal Boyd strained four bees, three flies and one leafhopper from a yellow pan trap, the third of 12 in a transect topping a granite outcrop in Quarry Park Scientific and Natural Area.She popped everything into a labeled, zip-top plas

    July 31, 2014 4 Photos

  • Cinema verite documentarian Robert Drew dies at 90 Filmmaker Robert Drew, a pioneer of the modern documentary who in "Primary" and other movies mastered the intimate, spontaneous style known as cinema verite and schooled a generation of influential directors that included D.A. Pennebaker and Albert M

    July 30, 2014

  • Homeowner killed, another injured in Vegas crime spree LAS VEGAS — A horrific carjacking and home invasion spree ended with two people dead and a woman in critical condition. One victim, Richard Ramos, a 59-year-old father of four, “fought to his death” to protect his wife and children from their attack

    July 30, 2014

  • Officer Shooting Minnesota-9 [Duplicate] UPDATE: Suspect in Minnesota officer killing in custody WEST ST. PAUL, Minn. (AP) — Police in Minnesota say a man wanted in the shooting death of an officer is in custody after being shot by police. St. Paul police spokesman Sgt. Paul Paulos says 39-year-old Brian Fitch Sr. got out of a minivan firing at

    July 30, 2014 4 Photos

  • Officer Shooting Minnesota-3 [Duplicate] Minnesota officer killed making traffic stop WEST ST. PAUL (AP) — A police officer in Minnesota was fatally shot Wednesday while making a traffic stop and authorities said they were searching for a suspect. Mendota Heights police officer Scott Patrick, 47, was shot about 12:20 p.m. after pulli

    July 30, 2014 2 Photos

  • Possible suspect caught in Minnesota cop shooting WEST ST. PAUL (AP) — A potential suspect in the shooting of a police officer in Minnesota has been captured. Minnesota Public Radio News reports that the officer was killed. Television news footage showed the man being pulled from his vehicle Wednes

    July 30, 2014