Sirius XM faces Chapter 11; Circuit City liquidates 567 stores
CBS News
Transcript
The markets were closed for President's Day. Friday, the Dow closed down 83 points and the Nasdaq fell seven points after a tough week on Wall Street. Investors remain nervous about details of the bank bailout. Financially strapped Sirius XM radio is on the brink of bankruptcy and could file Chapter 11 as early as tomorrow. The satellite radio company is negotiating with its creditors and currently owes $175 million. Howard Stern, Martha Stewart, and Oprah Winfrey all have shows on the satellite network. Circuit City is already in bankruptcy and now it's selling everything, including The Kitchen Sink. The electronics retailer got the go-ahad to start auctioning off the leases on their 567 stores. The Virginia based company already laid off 34,000 employees. Several Wall Street firms are halting foreclosures for now. They're holding off until the government launches a new mortgage relief program. President Obama is expected to announce his plan next Wednesday. The president hopes to help struggling Americans hold on to their homes. And as they refinance, it may be without a mortgage broker. Two major banks, JP Morgan Chase and Croup, have both announced that they are cutting out the middleman. Critics say this could ultimately lead to less competitive rates for homeowners. That's your money watch. Log on to cbsnews.com for more business headlines in New York. I'm Karen Brown.