States Face Uncertainty Amid Debt Stalemate

05:42

July 27, 2011

California Gov. Jerry Brown. The state will borrow $5-billion through a temporary loan in case of a credit-market disruption if the debt-ceiling is not raised by the August 2nd deadline. (AP) — California Gov. Jerry Brown. The state will borrow $5-billion through a temporary loan as a debt ceiling stalemate continues in Washington. (AP)

Financial institutions and states are watching events in DC.

A community bank outside of Boston says it will waive overdraft fees for customers if they don't receive Social Security and other checks from the government.

Some investment firms are conducting stress tests and California is seeking a bridge loan if Congress and President Obama fail to reach agreement on raising the debt ceiling. The loan would help pay California's bills.

Bloomberg News: California seeks $5 billion 'bridge' loan to pay bills

Guest:

Michael Marois, Bloomberg News

This segment aired on July 27, 2011.