GWEN IFILL: A huge new round of job cuts hit the U.S. financial industry today. Citigroup announced it's eliminating 53,000 positions in the coming months.
Combined with 22,000 jobs cut earlier this year, the banking giant is reducing its overall workforce by 20 percent. Half the cuts will come from selling off some of its operations and the rest from layoffs and attrition.
In addition, Citigroup executives may do without bonuses this year. On Sunday, Goldman Sachs announced its top executives will forgo their bonuses.
The Citigroup announcement kept Wall Street on edge today. After another volatile day, the Dow Jones Industrial Average lost more than 223 points to close at 8,273. The Nasdaq fell more than 34 points to close at 1,482.
Overseas markets also pulled back, after the world's 20 largest economies meeting over the weekend in Washington agreed on general reforms, but nothing concrete. One analyst in London said the global economic summit was never likely to achieve much.
DAVID BUIK, market analyst, BGC Partners: To expect a really positive result out of a communique where 20 big countries are trying to decide the financial improvement, for want of a better expression, or recovery of the world is impossible, particularly where the emperor hasn't put his new clothes on, i.e., President-elect Obama. Until such time as he puts his clothes on and he is in charge, it's virtually impossible to agree on anything.
GWEN IFILL: The summit nations did pledge to keep markets open and to reform the International Monetary Fund. They plan to hammer out details in the spring.
In London today, the president of the European Union, Jose Manuel Barroso, said the weekend meeting was a good start.
JOSE MANUEL BARROSO, president, European Union: We have shown that we can shape the global response and financial crisis, and I think we can also have economic response to this financial crisis.
We have a long way still to go, but it is clear that we are heading in the right direction in terms of the action that is being taken.
GWEN IFILL: The talk of global action came as Japan confirmed it's the latest major economy to fall into recession. We'll have more on all of this right after the news summary.
Congress began a lame-duck session today, but it was unclear if anything would pass. Emergency aid for the auto industry topped the agenda, along with a possible second stimulus plan.
Democrats and Republicans remained divided on both items. Senate Majority Leader Harry Reid urged action to, at the least, help the automakers.
SEN. HARRY REID (D-Nev.), Senate majority leader: If ever there were a time for working together, this is it. Senators have a choice to make. You can wait until January when we have a new Congress and a new president or we could start trying to work on some of these problems now. If we work together in the coming days, perhaps we can begin delivering solutions for the American people.
GWEN IFILL: Democrats want to give the auto companies $25 billion of the government's $700 billion rescue plan. The Bush administration has resisted that idea. Republican Sen. Arlen Specter of Pennsylvania asked today for more time before rushing to approve another bailout.
SEN. ARLEN SPECTER (R-Pa.): Bear Sterns was given economic aid; Lehman Brothers was not. And perhaps that was a mistake, perhaps not. AIG was given considerable economic aid. Fannie Mae and Freddie Mac given considerable economic aid. But if we are to make an intelligent decision, we're going to have to take a look at these important questions.
GWEN IFILL: In another development, the Treasury Department denied reports today it will spend only half of the $700 billion in rescue funds before President Bush leaves office. The agency said there's been no decision.
Ailing Senate veteran Edward Kennedy returned to work today. The Massachusetts Democrat was diagnosed with a malignant brain tumor last summer. He has since undergone surgery, radiation and chemotherapy.
Kennedy was flanked by his wife and dogs today and was greeted by a large "Welcome Back" sign and cheering staffers.
SEN. EDWARD KENNEDY (D-Mass.): We're very thankful for all the good thoughts and prayers that we've received over the time. We're looking for this -- forward to this session. And we're delighted to be back.
GWEN IFILL: Kennedy made one brief appearance in the Senate last July to vote on a Medicare bill.
President-elect Obama met today with former Republican rival John McCain. They sat down together in Chicago at Mr. Obama's transition headquarters, and they promised to work together, especially on the financial crisis.
Last night on "60 Minutes," Mr. Obama said again he favors aid for the auto industry, but he said it must be part of a long-term plan. We'll have more on the president-elect later in the program tonight.
The number of American children affected by hunger sharply increased in 2007. The Agriculture Department reported today nearly 700,000 children went hungry at some point last year; that was up from 430,000 in 2006. The numbers could go even higher as the economy sinks and could pressure the Obama administration to take new action.
Fire crews in Southern California made headway against a trio of ferocious fires today. Winds died down enough to allow some progress, but much of the damage has already been done. NewsHour correspondent Kwame Holman narrates our report.
KWAME HOLMAN: The easing winds were of small consolation today. More than 60 square miles of Southern California have been scorched.
The wind-whipped fire storms have burned more than 800 homes. The blazes stretch from Orange County through Los Angeles County and up the coast into Santa Barbara County, where the fire started last Thursday.
FIRE VICTIM: The fire started right above our house. And so we had no time.
KWAME HOLMAN: In seaside Santa Barbara, tinderbox conditions and near-hurricane-force winds combined to destroy more than 200 homes. The two fires in greater Los Angeles forced thousands of evacuations.
A wall of flames swept through the Oakridge Mobile Home Park in the San Fernando Valley over the weekend, destroying 500 homes.
FIRE VICTIM: We lost most of all of our money for our old age, which is now, in the stock market. And what we didn't lose we've lost all of the stuff here, so we really don't have anything.
KWAME HOLMAN: L.A. Mayor Antonio Villaraigosa.
ANTONIO VILLARAIGOSA, mayor of Los Angeles: All you see is charred wood, metal, bricks. What you see is a devastation that I've never seen before.
KWAME HOLMAN: Today the blazes were 40 percent contained. The LAPD allowed residents back in temporarily to survey damage and collect any remaining belongings.
Despite the respite, officials say they know any progress could be temporary.
FIREFIGHTER: The embers can fly anywhere from a couple hundred feet in light winds up to a half of a mile, three quarters of a mile.
KWAME HOLMAN: Fire officials are also conducting searches for possible victims who may not have had time to escape.
GWEN IFILL: So far, despite a few dozen injuries, there have been no reports of deaths.
Iraqi lawmakers began debating a long-term security agreement with the U.S. today. They did so as Foreign Minister Hoshyar Zebari and U.S. Ambassador Ryan Crocker signed the pact in a symbolic ceremony in Baghdad. It won the Iraqi cabinet's approval on Sunday.
The agreement lets American forces stay in Iraq through the end of 2011. It also gives Iraq much greater authority over U.S. troop movements.
In Washington, the chairman of the Joint Chiefs, Admiral Mike Mullen, welcomed the announcement.
ADM. MIKE MULLEN, chairman, Joint Chiefs of Staff: It's a very important agreement. It's one that we obviously need to continue our sustained operations there and have authorities to be there.
With respect to some of the specifics of it and how those would be implemented, I've actually spent time with Gen. Petraeus and Gen. Odierno on those. And we're all very comfortable that we have what we need.
GWEN IFILL: We'll have more on this story later in the program tonight.
Pakistan denied today it secretly approved U.S. missile strikes on al-Qaida and the Taliban inside its own territory. Citing unnamed senior officials from both countries, the Washington Post reported Sunday the U.S. and Pakistan have struck a "don't ask, don't tell" deal. But the Pakistani foreign minister said today, "There is no tacit understanding."
In Afghanistan today, the Taliban rejected President Karzai's invitation to hold peace talks with his government. On Sunday, Karzai offered to guarantee the safety of Mullah Omar, the Taliban leader, if he agreed to negotiate. Today, a Taliban spokesman insisted no talks will happen until all foreign forces leave Afghanistan.
A hijacked supertanker loaded with oil sailed toward a pirate haven in Somalia today. Pirates seized the Saudi-owned tanker, Sirius Star, on Saturday off Kenya. Then they forced it to head for Eyl on the Somali coast. The ship is the largest ever hijacked, three times the size of an aircraft carrier. It could hold two million barrels of oil, worth $100 million.
A U.S. government report today found Gulf War Syndrome is a legitimate medical condition. A research committee set up by Congress found more than 175,000 veterans of the 1991 war are affected. It blamed an anti-nerve-gas drug and exposure to pesticides. The findings contradicted earlier studies.
Billionaire Mark Cuban was accused of insider trading today. The Securities and Exchange Commission filed a civil lawsuit, charging he used confidential information to avoid losing $750,000. The transaction involved a sale of stock in Mamma.com, an Internet search engine. Cuban is the owner of the NBA's Dallas Mavericks. He denied the claims.
