JC Penney taps debt restructuring advisors

Signage is seen on a shopping cart inside a J.C. Penney Co. store in Peoria, Illinois. J.C. Penney has hired advisers to explore debt restructuring options that would buy more time for the money-losing U.S. retailer to forge a turnaround, people familiar with the matter said on Thursday. While J.C. Penney has more than $1.5 billion available under a revolving credit line, investors have continued to sell off the retailer’s shares in response to financial losses. J.C. Penney has in recent weeks h


Signage is seen on a shopping cart inside a J.C. Penney Co. store in Peoria, Illinois. J.C. Penney has hired advisers to explore debt restructuring options that would buy more time for the money-losing U.S. retailer to forge a turnaround, people familiar with the matter said on Thursday. While J.C. Penney has more than $1.5 billion available under a revolving credit line, investors have continued to sell off the retailer’s shares in response to financial losses. J.C. Penney has in recent weeks h
JC Penney taps debt restructuring advisors Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19
Keywords: news, cnbc, companies, taps, chains, jc, debt, retailer, advisors, store, financial, restructuring, sources, penney, retailers


JC Penney taps debt restructuring advisors

Signage is seen on a shopping cart inside a J.C. Penney Co. store in Peoria, Illinois.

J.C. Penney has hired advisers to explore debt restructuring options that would buy more time for the money-losing U.S. retailer to forge a turnaround, people familiar with the matter said on Thursday.

The 117-year-old department store chain’s move represents a high-stakes attempt to get its financial house in order before its cash coffers dwindle and its debt, totaling roughly $4 billion, comes due in the next few years.

The Plano, Texas-based company faces fierce competition from discount retailers such as the TJX Companies’ Marshalls and T.J. Maxx chains, and J.C. Penney has struggled to boost the profile of its e-commerce business to rival established players such as Amazon.com.

While J.C. Penney has more than $1.5 billion available under a revolving credit line, investors have continued to sell off the retailer’s shares in response to financial losses. Its credit rating is deep in junk territory, increasing its borrowing costs.

J.C. Penney has in recent weeks held discussions with lawyers and investment bankers who specialize in advising troubled companies on debt restructurings and other financial workouts, some of the sources said.

The retailer, which employs 95,000 people and operates more than 860 stores, is exploring options that could include raising additional cash or negotiating with creditors to push out debt maturities, these sources said.

J.C. Penney’s restructuring plans are at an early stage, one of the sources cautioned. The discussions with restructuring specialists reflect J.C. Penney’s resolve to take steps in coming months to increase its financial breathing room and avoid confronting a potential bankruptcy filing down the road, the source added.

The sources requested anonymity because the deliberations are confidential.

The deteriorating retail landscape has forced longstanding brick-and-mortar chains, including Toys “R” Us Inc and Sears Holdings, to seek bankruptcy protection in the last two years. Some retailers had to liquidate. Others, such as Neiman Marcus and J. Crew Group, have managed to avoid such a reckoning by reaching agreements with creditors to restructure their debts.


Company: cnbc, Activity: cnbc, Date: 2019-07-19
Keywords: news, cnbc, companies, taps, chains, jc, debt, retailer, advisors, store, financial, restructuring, sources, penney, retailers


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WeWork will host a Wall Street analyst day in IPO push

Signage is seen at the entrance of the WeWork offices on Broad Street in New York. The We Company, parent of shared office space manager WeWork, plans to host an analyst day for Wall Street banks on July 31, as the company steps up its preparations for an initial public offering (IPO), people familiar with the matter said. While WeWork filed for an IPO with the U.S. Securities and Exchange Commission in December, it has yet to hire IPO underwriters, the sources said. WeWork wants to be in a posi


Signage is seen at the entrance of the WeWork offices on Broad Street in New York. The We Company, parent of shared office space manager WeWork, plans to host an analyst day for Wall Street banks on July 31, as the company steps up its preparations for an initial public offering (IPO), people familiar with the matter said. While WeWork filed for an IPO with the U.S. Securities and Exchange Commission in December, it has yet to hire IPO underwriters, the sources said. WeWork wants to be in a posi
WeWork will host a Wall Street analyst day in IPO push Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: kate fazzini, annie palmer
Keywords: news, cnbc, companies, investors, ipo, wework, sources, analyst, debt, day, company, public, wall, push, billion, street, host, offering


WeWork will host a Wall Street analyst day in IPO push

Signage is seen at the entrance of the WeWork offices on Broad Street in New York.

The We Company, parent of shared office space manager WeWork, plans to host an analyst day for Wall Street banks on July 31, as the company steps up its preparations for an initial public offering (IPO), people familiar with the matter said.

WeWork’s decision to host the event at this stage is unusual, given that IPO hopefuls have typically hired underwriters by the time they invite analysts from Wall Street banks to educate them about their company’s business.

While WeWork filed for an IPO with the U.S. Securities and Exchange Commission in December, it has yet to hire IPO underwriters, the sources said. WeWork wants to be in a position to potentially go public by the end of 2019, the sources added.

The hosting of the event at this early stage indicates that the New York-based start-up wants to leave nothing to chance after other high-profile IPOs struggled or were canceled this year, amid pushback from investors over the frothy valuations sought.

The sources asked not to be identified because the matter is confidential. A spokesman for WeWork declined to comment.

The IPO market has been challenging for some of this year’s biggest listings. Ride-hailing companies Uber and Lyft faced criticism from investors about their steep losses and the lack of commitment to a timetable to reach profitability.

Last week, Anheuser Busch InBev NV, the world’s largest brewer, shelved the initial public offering (IPO) of its Asian business after it could not muster enough investor support for the valuation it sought.

WeWork was recently valued at $47 billion in a private fundraising round, making it one of the most valuable private companies in the world.

However, the money-losing company has faced questions about the sustainability of its business model, which is based on short-term revenue agreements and long-term loan liabilities.

The losses at WeWork’s parent company narrowed slightly in the first quarter of 2019 to $264 million as revenue continues to double annually.

WeWork is looking to raise $3 billion to $4 billion in debt before it goes public, and has held discussions with representatives of Goldman Sachs and JPMorgan Chase to discuss the debt offering, Reuters reported earlier this month.

A substantial debt offering could allow it to pitch itself to potential investors in a planned IPO as having sufficient funding to see itself to profitability.

WeWork, which was co-founded in 2010 by CEO Adam Neumann, has helped pioneer “coworking,” or shared desk-space, with a focus on startups, entrepreneurs and freelancers.

In January, Japan’s SoftBank boosted its stake in WeWork by $2 billion in a deal that was billions of dollars below what the company had hoped to raise to fund growth and buy out existing shareholders.


Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: kate fazzini, annie palmer
Keywords: news, cnbc, companies, investors, ipo, wework, sources, analyst, debt, day, company, public, wall, push, billion, street, host, offering


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JC Penney: We haven’t hired advisors ‘to prepare for an in-court restructuring or bankruptcy’

J.C. Penney on Friday afternoon said it hasn’t hired any advisors to prepare for an “in-court restructuring or bankruptcy.” The statement followed a report Thursday evening that the embattled department store chain had hired advisors to explore debt restructuring options, potentially buying it more time for a turnaround. “As a public company, we routinely hire external advisors to evaluate opportunities for the Company,” Penney said in a statement. Also, given our strong liquidity position we ca


J.C. Penney on Friday afternoon said it hasn’t hired any advisors to prepare for an “in-court restructuring or bankruptcy.” The statement followed a report Thursday evening that the embattled department store chain had hired advisors to explore debt restructuring options, potentially buying it more time for a turnaround. “As a public company, we routinely hire external advisors to evaluate opportunities for the Company,” Penney said in a statement. Also, given our strong liquidity position we ca
JC Penney: We haven’t hired advisors ‘to prepare for an in-court restructuring or bankruptcy’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: lauren thomas
Keywords: news, cnbc, companies, stores, bankruptcy, hired, prepare, advisors, department, restructuring, past, company, penney, debt, havent, store, shares, incourt, jc


JC Penney: We haven't hired advisors 'to prepare for an in-court restructuring or bankruptcy'

J.C. Penney on Friday afternoon said it hasn’t hired any advisors to prepare for an “in-court restructuring or bankruptcy.”

The statement followed a report Thursday evening that the embattled department store chain had hired advisors to explore debt restructuring options, potentially buying it more time for a turnaround.

“As a public company, we routinely hire external advisors to evaluate opportunities for the Company,” Penney said in a statement.

“By working with some of the best firms in the industry, we are taking positive and proactive measures, as we have done in the past, to improve our capital structure and the long-term health of our balance sheet. We have no significant debt maturities coming due in the near term, and we continue to maintain a strong liquidity position. Also, given our strong liquidity position we can confirm that we have not hired any advisors to prepare for an in-court restructuring or bankruptcy.”

Penney has roughly $4 billion in debt coming due in the next few years, with more than $1.5 billion currently available under a revolving credit line, according to SEC filings.

The Plano, Texas-based retailer’s sales continue to dwindle, as the company hasn’t been able to invest in the latest tech, modern fixtures and other ways to draw shoppers into stores. Penney’s apparel business also hasn’t been able to keep pace with fast-fashion players such as Zara. And the department store sector as a whole is troubled, with more and more consumers shopping directly with brands such as Nike and Kate Spade, bypassing wholesalers.

Luxury department store chain Barneys New York, for example, is making preparations for a bankruptcy filing that could come as soon as this month, people familiar have told CNBC. Nordstrom is trading nearly $20 a share lower than a $50-a-share buyout offer it rejected two years ago as too low. Saks owner Hudson’s Bay Company is considering going private after its shares fell nearly 50% in the year through June. And shares of Macy’s are down 40% through the past year.

Still pruning its real estate, Penney has said it plans to shut 18 of its department stores in 2019, with additional closures a possibility if the situation doesn’t improve. Penney still operates more than 800 stores across the country. And some analysts have estimated it could still need to shut more than 100.

According to the report on Thursday, Penney in recent weeks had been talking with lawyers and bankers who specialize in advising troubled companies on debt restructurings and other financial workouts.

Penney shares were down more than 17.5% by Friday afternoon to trade below $1. The stock has fallen more than 60% over the past 12 months. Shares, which have a market value of roughly $285.5 million, sank below $1 for the first time in December 2018.

— CNBC’s Lauren Hirsch contributed to this report.

WATCH: Retail is not lousy, retailers are lousy: Expert


Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: lauren thomas
Keywords: news, cnbc, companies, stores, bankruptcy, hired, prepare, advisors, department, restructuring, past, company, penney, debt, havent, store, shares, incourt, jc


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Elizabeth Warren launched a new attack on private equity: Here’s how the downfall of Toys R Us got her there

Democratic presidential candidate Sen. Elizabeth Warren took aim Thursday morning at the private equity industry, proposing new regulations for an industry that some have blamed for the spate of retail bankruptcies over the past few years. For politicians seeking broad support, private equity has become an easy target. Private equity firms were at the forefront of the so-called “retail apocalypse,” which saw the destruction of many of the country’s beloved retailers. But the debt load firms plac


Democratic presidential candidate Sen. Elizabeth Warren took aim Thursday morning at the private equity industry, proposing new regulations for an industry that some have blamed for the spate of retail bankruptcies over the past few years. For politicians seeking broad support, private equity has become an easy target. Private equity firms were at the forefront of the so-called “retail apocalypse,” which saw the destruction of many of the country’s beloved retailers. But the debt load firms plac
Elizabeth Warren launched a new attack on private equity: Here’s how the downfall of Toys R Us got her there Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: lauren hirsch
Keywords: news, cnbc, companies, heres, downfall, attack, sen, presidential, warren, equity, launched, retail, elizabeth, companies, firms, retailers, industry, toys, private, debt


Elizabeth Warren launched a new attack on private equity: Here's how the downfall of Toys R Us got her there

Democratic presidential candidate Sen. Elizabeth Warren took aim Thursday morning at the private equity industry, proposing new regulations for an industry that some have blamed for the spate of retail bankruptcies over the past few years.

The attack was the latest shot at Big Business and its supporters since candidates Sen. Bernie Sanders, I-Vt., and Donald Trump whipped up populist fervor during the 2016 presidential campaign.

For politicians seeking broad support, private equity has become an easy target. The investment firms that do business by buying up companies and loading them with debt have been criticized for rewarding themselves with dividends while the businesses they own go under. Private equity firms were at the forefront of the so-called “retail apocalypse,” which saw the destruction of many of the country’s beloved retailers.

Private equity’s hold on the retail industry solidified in the mid-2000s, when firms swarmed, lured in by a combination of low interest rates, recognizable brand names and the view that retailers’ steady cash flow would continue indefinitely.

But the debt load firms placed on those retailers left them hamstrung. When digital commerce permanently altered the retail industry, the companies had no capacity to make investments in technology and in their stores that were needed to compete against Amazon.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: lauren hirsch
Keywords: news, cnbc, companies, heres, downfall, attack, sen, presidential, warren, equity, launched, retail, elizabeth, companies, firms, retailers, industry, toys, private, debt


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Ron Insana: Digitize the dollar faster and end the frenzy for fake money

To the Treasury Department and the Federal Reserve: Please formally digitize the dollar and put an end to all this crypto-craziness. We have a token that already is a medium of exchange, storehouse of value and unit of account. They are not backed by anything, despite the complaints of crypto-enthusiasts who decry the use of fiat money. There are no currencies, save for those of failed states, that have less “backing” than bitcoin, Libra, ethereum, etc. (A record $13 trillion of global sovereign


To the Treasury Department and the Federal Reserve: Please formally digitize the dollar and put an end to all this crypto-craziness. We have a token that already is a medium of exchange, storehouse of value and unit of account. They are not backed by anything, despite the complaints of crypto-enthusiasts who decry the use of fiat money. There are no currencies, save for those of failed states, that have less “backing” than bitcoin, Libra, ethereum, etc. (A record $13 trillion of global sovereign
Ron Insana: Digitize the dollar faster and end the frenzy for fake money Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: ron insana
Keywords: news, cnbc, companies, insana, money, digitize, ron, debt, end, dollar, yield, pay, department, bitcoin, trillion, frenzy, faster, making, libra, fake, treasury


Ron Insana: Digitize the dollar faster and end the frenzy for fake money

To the Treasury Department and the Federal Reserve: Please formally digitize the dollar and put an end to all this crypto-craziness.

This bitcoin BS and Libra lunacy should stop.

We have a token that already is a medium of exchange, storehouse of value and unit of account. It’s called the dollar. And, quite frankly, it’s already largely been digitized.

How often does payroll department drop by your desk and leave a check?

Hardly ever anymore. Your pay is directly deposited into your bank account form which you may sometimes withdraw cash or coin.

More often than not, you use a debit/credit card to buy goods and services or pay your bills by automatic electronic transfer. That’s digital design.

The world doesn’t need a new currency, crypto or otherwise, to replace the U.S. dollar.

It’s true that the cost of all financial transactions needs to come down and that more efficiencies are needed to speed up transaction times.

Cryptocurrencies are not created more quickly than dollars. They are not backed by anything, despite the complaints of crypto-enthusiasts who decry the use of fiat money. There are no currencies, save for those of failed states, that have less “backing” than bitcoin, Libra, ethereum, etc.

The U.S. dollar is backed by not just a $20 trillion economy, but by the assets owned by the U.S. government and by Treasury securities that carry a positive yield, making U.S. debt a haven for investors seeking a return on cash.

(A record $13 trillion of global sovereign debt carries a negative yield, again, making the dollar, and dollar-denominated assets, an attractive place in which to invest.)


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: ron insana
Keywords: news, cnbc, companies, insana, money, digitize, ron, debt, end, dollar, yield, pay, department, bitcoin, trillion, frenzy, faster, making, libra, fake, treasury


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Mnuchin says progress being made on debt limit deal, markets shouldn’t be concerned

“I think everybody is in agreement that we won’t do anything that puts the U.S. government at risk in terms of our issue of defaulting. So I don’t think the market should be concerned, and we’re working hard. He added that everybody involved is aware of the risks that the inability to reach a deal would bring. The Treasury has been using a series of “extraordinary measures” to keep the government running while the spending impasse continues. Mnuchin earlier had said that those measures could kee


“I think everybody is in agreement that we won’t do anything that puts the U.S. government at risk in terms of our issue of defaulting. So I don’t think the market should be concerned, and we’re working hard. He added that everybody involved is aware of the risks that the inability to reach a deal would bring. The Treasury has been using a series of “extraordinary measures” to keep the government running while the spending impasse continues. Mnuchin earlier had said that those measures could kee
Mnuchin says progress being made on debt limit deal, markets shouldn’t be concerned Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: jeff cox
Keywords: news, cnbc, companies, progress, deal, working, concerned, spending, suspending, agreement, shouldnt, debt, sides, service, limit, markets, think, mnuchin, measures, treasury


Mnuchin says progress being made on debt limit deal, markets shouldn't be concerned

Treasury Secretary Steven Mnuchin told CNBC on Thursday the administration and congressional leaders are continuing toward resolving an impasse over the debt ceiling and he is confident an agreement will be reached that will ensure the U.S. does not default on its obligations.

“I don’t think the market should be concerned,” he said. “I think everybody is in agreement that we won’t do anything that puts the U.S. government at risk in terms of our issue of defaulting. I think that nobody wants a shutdown in any scenario. So I don’t think the market should be concerned, and we’re working hard. We’ll get there one way or another.”

In what he called his “most conservative” scenario, the U.S. could lose its spending ability by early September. At that point, the Treasury would not be able to make payments on its $22 trillion debt load, a potentially catastrophic event that would ripple through financial and world markets.

Both sides have been negotiating on reaching future spending limits and a longer-term agreement on continuing to allow the government the ability to borrow. There have been some indications that an agreement is near, though CNBC’s Ylan Mui reported earlier that the two sides remain significantly apart.

In the interview on “Squawk Box, ” Mnuchin said he has been having “daily conversations” with House Speaker Nancy Pelosi, D-Calif., they have reached an agreement on “top-line” spending numbers over a one- and two-year period, and are now working on “offsets” to put caps on spending.

He added that everybody involved is aware of the risks that the inability to reach a deal would bring.

“I’ve discussed that with the leadership of both the House and the Senate,” he said. “That’s why I’ve encouraged them to raise the debt ceiling before they leave.”

Lawmakers plan on leaving for their August recess on July 26.

The Treasury has been using a series of “extraordinary measures” to keep the government running while the spending impasse continues. The measures currently in use entail halting sales of state and local government series Treasury securities, redeeming existing sales and suspending any new investments of civil service and Postal Service pension funds, and suspending reinvestments of the Government Securities Investment Fund and the Exchange Stabilization Fund.

Mnuchin earlier had said that those measures could keep the U.S. afloat into November, but recently shortened the time span.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: jeff cox
Keywords: news, cnbc, companies, progress, deal, working, concerned, spending, suspending, agreement, shouldnt, debt, sides, service, limit, markets, think, mnuchin, measures, treasury


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How going cash-only helped this 23-year-old pay off $20,000 in debt in one year

Paying with paper instead of plastic helped Kristy Epperson eliminate $20,000 in student loan and car loan debt in just one year. Every month, Epperson started withdrawing money from her checking account to cover spending categories like dining out, groceries, and gas. The debt-free celebration: Spruce up her homeWhile in debt-elimination mode, Epperson promised herself she’d spruce up her lawn once she finally zeroed out her student loan debt. Kristy Epperson’s lawn, before and after she hired


Paying with paper instead of plastic helped Kristy Epperson eliminate $20,000 in student loan and car loan debt in just one year. Every month, Epperson started withdrawing money from her checking account to cover spending categories like dining out, groceries, and gas. The debt-free celebration: Spruce up her homeWhile in debt-elimination mode, Epperson promised herself she’d spruce up her lawn once she finally zeroed out her student loan debt. Kristy Epperson’s lawn, before and after she hired
How going cash-only helped this 23-year-old pay off $20,000 in debt in one year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: sofia pitt
Keywords: news, cnbc, companies, 20000, spending, helped, paying, 23yearold, loan, going, month, pay, debt, epperson, credit, cashonly, money, cash, student


How going cash-only helped this 23-year-old pay off $20,000 in debt in one year

Paying with paper instead of plastic helped Kristy Epperson eliminate $20,000 in student loan and car loan debt in just one year. After earning her bachelor’s degree in nursing from Wright State University in 2017, Epperson owed about $16,000 in student loans from multiple borrowers with interest rates of between 3.6% and 6.8%. She also had roughly $4,000 left on her car loan, at an interest rate of 4.2%. Even as Epperson began slowly chipping away at that debt, she managed to achieve another financial goal: homeownership. She was able to buy a place in Dayton, Ohio, with only 5% as a down payment. Becoming a homeowner forced her to take a hard look at her expenses and reevaluate her spending habits — which made her more determined to wipe out her student loan and auto debts. “If something happened, if I lost my job, I’d have no way to pay my bills,” Epperson tells Grow. “I needed a better long-term plan.” In addition to getting a second job as a substitute teacher, which brought in an extra $100 to $300 a month, Epperson created an expense spreadsheet and began tracking her purchases to help her pay down debt faster. She used her Instagram page, @DebtFreeAtTwentyThree, to share her setbacks, strategies, and accomplishments.

The anti-debt strategy: Cold, hard cash

Epperson’s expense tracking showed her one key problem area: credit card use. “I would look at my credit card bill and not even remember some of the charges,” she says. “I was eating out a lot, buying new clothes at Target, shopping on Amazon.” So she ditched the credit cards. “I felt using cash would hold me accountable,” she explains.

Every month, Epperson started withdrawing money from her checking account to cover spending categories like dining out, groceries, and gas. Once she ran out of the money she had allocated to a specific expense, she stopped spending on that category. If Epperson overspent in a category, she would borrow from another. That meant making spending sacrifices: “One month my friends were all going to a Kenny Chesney concert and I didn’t have the money left that month, so I couldn’t go,” she says. When paying in cash wasn’t an option—like when she had to make purchases online—Epperson says she used a credit card and paid off the balance immediately with the money in her checking account to avoid racking up more debt. Once Epperson’s friends realized she was turning down plans, they tried to be accommodating to help her save: Epperson and her friends started taking advantage of Dayton’s great hiking trails, hosting game nights, and all chipping in to buy groceries and cook dinner together.

The debt-free celebration: Spruce up her home

While in debt-elimination mode, Epperson promised herself she’d spruce up her lawn once she finally zeroed out her student loan debt. “Looking out the window and imagining the yard I wanted motivated me to stick to the budget,” she says. Hiring a landscaper was one of the first moves she made after paying off her student loans earlier this summer.

Kristy Epperson’s lawn, before and after she hired a landscaper as part of her celebration of paying off student loan debt.

The opportunity: An emergency fund

Now that Epperson is free of her student and auto loan debt, her midterm goal is to save up enough to buy a new car using cash, and to replace her hand-me-down TV. But first, she says, her priority is to build up a six-month emergency fund. So far, she has nearly a third of what she needs saved up. Epperson says she plans to keep up with her cash budgeting strategy. In fact, she hasn’t used her credit cards in months. Do you have an inspiring story about how you paid down debt? Email us at getgrowing@cnbc.com. The article How Going Cash-Only Helped This 23-Year-Old Pay Off $20,000 in Debt in One Year originally appeared on Grow by Acorns + CNBC.


Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: sofia pitt
Keywords: news, cnbc, companies, 20000, spending, helped, paying, 23yearold, loan, going, month, pay, debt, epperson, credit, cashonly, money, cash, student


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Here’s what needs to happen for Congress to raise the debt ceiling and avoid default

Congress will have to scramble to raise the U.S. debt limit and avoid a potential default that would rattle the world economy. The House speaker and Treasury secretary have discussed a two-year budget deal that would also raise the U.S borrowing limit. Democrats want to strike a budget deal to avoid automatic across-the-board spending cuts known as sequestration. A two-year spending agreement tied to a debt ceiling increase would accomplish all of those in one swoop. Democrats have opposed a sho


Congress will have to scramble to raise the U.S. debt limit and avoid a potential default that would rattle the world economy. The House speaker and Treasury secretary have discussed a two-year budget deal that would also raise the U.S borrowing limit. Democrats want to strike a budget deal to avoid automatic across-the-board spending cuts known as sequestration. A two-year spending agreement tied to a debt ceiling increase would accomplish all of those in one swoop. Democrats have opposed a sho
Here’s what needs to happen for Congress to raise the debt ceiling and avoid default Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: jacob pramuk
Keywords: news, cnbc, companies, house, deal, raise, default, spending, treasury, avoid, heres, pelosi, needs, debt, ceiling, congress, twoyear, happen, limit


Here's what needs to happen for Congress to raise the debt ceiling and avoid default

Congress will have to scramble to raise the U.S. debt limit and avoid a potential default that would rattle the world economy.

On Wednesday, House Speaker Nancy Pelosi said she would like to vote on a bill to hike the debt ceiling by July 26 — the chamber’s last day of activity before an August recess. She hopes it would give the Senate enough time to pass legislation before it leaves the following week.

Of course, negotiators in Washington will first have to find an agreement that can get through both chambers of Congress. Pelosi said she hopes lawmakers and the White House can reach a deal by Friday, which would allow them to post legislative text over the weekend.

She and Senate Minority Leader Chuck Schumer spoke to Treasury Secretary Steven Mnuchin earlier Wednesday. While officials have cited progress in the talks, sticking points remain.

“It’s all about money, right?” Pelosi told reporters Wednesday.

The House speaker and Treasury secretary have discussed a two-year budget deal that would also raise the U.S borrowing limit. The issue took on more urgency last week, when Mnuchin wrote to Congress saying the Treasury Department could run out of cash “in early September, before Congress reconvenes.”

Lawmakers hope to avoid a government shutdown before they leave, as current government funding expires at the end of September. Democrats want to strike a budget deal to avoid automatic across-the-board spending cuts known as sequestration.

A two-year spending agreement tied to a debt ceiling increase would accomplish all of those in one swoop. Democrats have opposed a short-term debt limit hike.

If America defaulted on its debt, it could send shock waves through the global economy and financial markets. Even a less disruptive government shutdown could drag on U.S. economic growth.

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Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: jacob pramuk
Keywords: news, cnbc, companies, house, deal, raise, default, spending, treasury, avoid, heres, pelosi, needs, debt, ceiling, congress, twoyear, happen, limit


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When former president Jimmy Carter left office, his peanut business was $1 million in debt

When President Jimmy Carter left the White House in 1981, he was 56 years old and deep in debt. His peanut business, which sold certified seed peanuts and other farm supplies, was $1 million in the red by the time he finished his term, The Washington Post reports. When he left office in debt, “we thought we were going to lose everything,” Carter’s wife Rosalynn told the Post. Forced to sell the company, Carter started writing books to generate income. In 2017, Carter got more than $230,000 in su


When President Jimmy Carter left the White House in 1981, he was 56 years old and deep in debt. His peanut business, which sold certified seed peanuts and other farm supplies, was $1 million in the red by the time he finished his term, The Washington Post reports. When he left office in debt, “we thought we were going to lose everything,” Carter’s wife Rosalynn told the Post. Forced to sell the company, Carter started writing books to generate income. In 2017, Carter got more than $230,000 in su
When former president Jimmy Carter left office, his peanut business was $1 million in debt Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: kathleen elkins
Keywords: news, cnbc, companies, president, peanut, debt, reports, wife, jimmy, office, million, writing, white, left, carter, farm, business


When former president Jimmy Carter left office, his peanut business was $1 million in debt

When President Jimmy Carter left the White House in 1981, he was 56 years old and deep in debt.

His peanut business, which sold certified seed peanuts and other farm supplies, was $1 million in the red by the time he finished his term, The Washington Post reports. Carter had been managing the family-owned peanut farm, warehouse and store in Plains, Georgia, since his dad died in 1953, but when he became president, he put it into a blind trust to avoid conflicts of interest.

When he left office in debt, “we thought we were going to lose everything,” Carter’s wife Rosalynn told the Post.

Forced to sell the company, Carter started writing books to generate income. Today, the 94-year-old has published more than 30, from a children’s book to reflections on his presidency.

As a former president, he also receives an annual pension of about $210,000 and an allowance for things like travel, office space and other expenses. In 2017, Carter got more than $230,000 in such allowances, the National Taxpayers Union Foundation reports.


Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: kathleen elkins
Keywords: news, cnbc, companies, president, peanut, debt, reports, wife, jimmy, office, million, writing, white, left, carter, farm, business


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Mnuchin says White House and Congress are ‘getting closer’ to a deal to raise the debt ceiling

US Treasury Secretary Steven Mnuchin speaks on regulatory issues associated with crypto currency in the briefing room at the White House in Washington, DC, on July 15, 2019. U.S. Secretary Steven Mnuchin said on Monday the administration and Congress are getting close to a deal on raising the U.S. debt ceiling and he has urged lawmakers to take action on the issue before their August recess. “I think there is a preference on both parties, to the extent that we can agree on the debt ceiling and a


US Treasury Secretary Steven Mnuchin speaks on regulatory issues associated with crypto currency in the briefing room at the White House in Washington, DC, on July 15, 2019. U.S. Secretary Steven Mnuchin said on Monday the administration and Congress are getting close to a deal on raising the U.S. debt ceiling and he has urged lawmakers to take action on the issue before their August recess. “I think there is a preference on both parties, to the extent that we can agree on the debt ceiling and a
Mnuchin says White House and Congress are ‘getting closer’ to a deal to raise the debt ceiling Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: kate rooney
Keywords: news, cnbc, companies, debt, deal, closer, white, getting, issues, steven, raise, ceiling, secretary, lawmakers, mnuchin, congress, think, house


Mnuchin says White House and Congress are 'getting closer' to a deal to raise the debt ceiling

US Treasury Secretary Steven Mnuchin speaks on regulatory issues associated with crypto currency in the briefing room at the White House in Washington, DC, on July 15, 2019.

U.S. Secretary Steven Mnuchin said on Monday the administration and Congress are getting close to a deal on raising the U.S. debt ceiling and he has urged lawmakers to take action on the issue before their August recess.

“I think there is a preference on both parties, to the extent that we can agree on the debt ceiling and a budget deal, that that is the first choice, and I think that we’re getting closer,” Mnuchin told reporters during a briefing at the White House.

Mnuchin said that if a deal on all of the issues were not reached before lawmakers were scheduled to take off, they should either stay put or approve an increase in the debt ceiling on its own.

“I think we’re very close to a deal, but as you know, these deals are complicated,” he said. “I’m very hopeful we can come to … an agreement quickly, but having said that, if for whatever reason we cannot agree on all these issues before they leave, I would either expect them to stick around or raise the debt ceiling.”

Mnuchin said he was not concerned about the prospect of a government shutdown related to the budget discussions.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: kate rooney
Keywords: news, cnbc, companies, debt, deal, closer, white, getting, issues, steven, raise, ceiling, secretary, lawmakers, mnuchin, congress, think, house


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