j. p. morgan fund. >> tom: here are the stories in tonight's n-b-r newswheel: late today, google said its gmail service recently came under attack from china. hundreds of gmail users were tricked into disclosing their passwords. u.s. and asian officials, as well as journalists, were affected.* chinese activists house republicans met with president obama, hoping for a deal on the debt ceiling. they want to slash trillions of dollars in spending in return for letting uncle sam boost his ability to borrow. after the meeting, house speaker john boehner said he told the president now is not the time to kick the can down the road. >> if we're going to raise the debt limit, the spending cuts should exceed the increase in the debt limit, otherwise it will serve to cost us jobs in our country. it's not what the american people want. >> reporter: without some kind of action, we'll hit the current debt limit of $14.3 trillion by august. >> tom: still ahead, it's the one sector outperforming the rest of the m

j. p. morgan, wells farg oh, citigroup and others ralied today. >> bank of america will probably end up spending more than some of the other banks in terms of percentage of past original nation. but it definitely sets a press deb for future settlements with other banks. >> reporter: but that's not the only hurdle banks are facing, they are also negotiating with all 50 state attorneys general over their foreclosure practices, dubbed robo signing. most analysts think a settlement is coming. with bank america again paying the most. >> the state a. g. thing is probably going to be several billion dollars to a bank america. so it actually might be somewhat smaller than this. the other thing about the state a. g. settlement is that parts of that can be taken out of existing reserves. >> reporter: even if you don't own bank stocks, the bank of america settlement could have an impact on you. experts say the faster the subprime mess gets resolved, the faster the housing market can turn around. erika miller

j. p. morgan. >> tom: here are the stories in tonight's n.b.r. newswheel: stocks headed lower on the fed's cautious outlook for the economy. the dow fell 80 points, the nasdaq was off 18 and the s&p 500 fell eight points. trading volume rose slightly on the big board to 854 million shares. it fell on the nasdaq to 1.6 billion shares. new scrutiny for the $2 trillion hedge fund industry is coming. the securities and exchange commission today adopted rules requiring advisers to funds and private equity firms with more than $150 million under management to register with the agency by april of next year. and in an effort to stay afloat, the u.s. postal service is suspending contributions to its health care retirement fund. the move will free up about $800 million and buy the agency time until congress can act on cost- cutting measures like dropping saturday delivery. still ahead, with the fed on hold tonight's "street criqitue" looks at whether investors should be too. >> susie: everyone knows the real estate market is in bad shape, but it's looking

j. p. morgan became the leader of our finance establishment that wielded more day-to-day power than the government itself. without the inconvenience obligation to answer to the judgment of any electorate. p. morgan. morgan och conservatives became wedded to the idea that unfettered capitalism was indispensable to the survival of democracy. that marriage has in toward. these were ingrained ideas raised to the level of feel logical dogma with little apparent concern for their intensely materialist character. these are ideas roosevelt challenged and discarded and thereby he saved both capitalism and democracy. this conservatives have never accepted and how he did it they have never forgiven. roosevelt's new deal, his revolution in some way became the victim of its own success. it produced a new and broader definition of middle class. it opened opportunities for working class and especially the uncounted numbers of the children of the working class to live well and prosper. it created a new generation

treasury department said today that wells fargo, bank of america and j p morgan chase have failed top enough people to permanently lower the mortgage payment. government had been giving the bank financial incentive to prevent foreclosure but now pulled the incentive. only about a third of the 1.4 million people who applied to have the mortgages modified were actually successful. >>> one other measure of how tough things r.home equity. federal reserve says americans own a smaller portion of their homes now than at any time since world war ii. 2001 americans owned about 61 percent of their homes. now it is down to just 38 percent. >>> citizen group in san jose sick and tired of the trash and weeds and rundown home in neighborhood full of foreclosed property so it is pressuring the stoy go after the bank that now own them. mark reports. >> san jose group of community activist board add bus this morning on a tour of rundown and abandoned houses. foreclosure at all time high, properties like this are spreading cancer. bringing down already depressed property value. >> you can see l. >>rep