The House of Representatives planned to vote today on adebt-limit increase proposal that confronts unified Democraticopposition in the Senate, setting the stage for a congressionalshowdown to avert a U.S. default.

House Speaker John Boehner of Ohio gained support among fellowRepublicans for his plan to raise the debt ceiling after reworkingthe legislation to cut $917 billion over 10 years, more than hisoriginal approach. All 51 Senate Democrats and two independentssigned a letter yesterday pledging to oppose the measure.

As congressional leaders continued to wrangle with less than aweek before a potential U.S. default on Aug. 2, stock marketsshowed jitters. The Standard & Poor's 500 Index fell 2 percentyesterday, the biggest drop in almost two months, and the cost ofinsuring against a U.S. default climbed to the highest level sinceFebruary 2010.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.