Circuit City files bankruptcy; DHL cuts 10,000 US jobs

CBS

Transcript

Circuit City has filed for bankruptcy that means the company can hold off creditors while it tries to get back in the black during the holiday shopping season most stores will stay open though about 20 percent are being closed down for good and DHL Express is closing all service centers in the U.S eliminating nearly 10 000 jobs the service competes with UPS and FedEx but its German parent company says domestic shipping has been a losing operation that news helped squash an early rally at the stock market the Dow gave up a triple digit gain closing down more than 70 points the NASDAQ lost about 30. the government is pouring another 40 billion dollars into saving AIG that brings the total bailout for the insurance giant to 150 billion dollars under the new terms AIG will be forced to limit executive pay and taxpayers will get an equity stake while the economy shrinks the world's appetite for fast food continues to grow turning McDonald's into one of the few winners in this Rocky economy the company announced worldwide sales climbed by more than 8 percent last month that's your money watch log on to cbsnews.com for more business headlines at the New York Stock Exchange I'm Catherine Brown

AIG Gets Bigger Bailout

CBS

Transcript

now the bailout needs a bailout two months after aig was given that first emergency government loan it's getting another lifeline this restructure package will allow aig to continue to restructure themselves in a way that will not hurt the overall economy aig is the largest insurance company in the u.s and we touch most of the global financial financial institutions we touch in one way or another we've got 76 million policyholders it's really important for us to do well but aig lost 24 billion dollars in the last quarter in the new rescue package the government will invest 40 billion dollars to buy aig stock by more than 50 billion dollars worth of the company's toxic mortgage securities and loan aig 60 billion dollars at a lower interest rate in turn the company has to accept a freeze on executive bonuses the question is is do we trust their word and i got to tell you the trust is running out aig spent 200 000 congressman elijah cummings has been a critic of how aig has been spending its bailout money we cannot be just like a spicket that just keeps running and running and running and anytime you want to come back for you know a bucket for you come back we the government just cannot afford to continue to do that but the company's government appointed ceo wouldn't rule out going back to the well what you can't predict and no one knows what's going to happen with the worldwide global capital markets are they going to stay the same get better or get worse that of course is the wild card in other bailout news the white house signaled it's now willing to consider helping the auto companies at the same time a major bank predicted gm stock would fall to zero within the year that's right zero dollars in other words they think gm is essentially worthless katie so if that's the case why would the government want to bail out in one word jobs katie when you add in the supporting companies the suppliers there are about two and a half million jobs connected to the auto industry losing them would of course be devastating for the economy plus gm going under would be hugely simple psychological psychologically huge all right anthony mason thanks anthony