OVERNIGHT MONEY: 'Fiscal cliff' and Sandy dominate agenda

WEDNESDAY'S BIG STORY: 

Frosty fiscal cliff: While negotiations continue between President Obama and Speaker John Boehner, a so-called Plan B by the House leader got a frosty reception from, well, pretty much everyone on Tuesday. 

The White House, House and Senate Democrats and even some House Republicans said they oppose Boehner's suggestion to pass a bill on Thursday that would make permanent all tax rates for those who make less than $1 million a year. 

The bill would allow tax rates to rise from 35 percent to 39.6 percent.

But the legislation didn't include any other major issues such as the debt limit or an extension of unemployment benefits, which many lawmakers expect to land in a year-end package. 

So, Republicans were going to talk about the whole situation a little more on Tuesday night. 

In the whole scheme of talks, differences remain over just about every aspect of a possible deal.

Boehner, who informed the president about Plan B on Monday night, did say he will continue talks with the president and the White House seems willing to do the same. 

In the Tuesday move, Republicans were aiming to change the political dynamic on Capitol Hill by forcing Democrats to look a little harder at a time in May when Minority Leader Nancy Pelosi (D-Calif.) called on the GOP to hold a vote on a similar bill. 

Democrats didn't bite, arguing that Republicans had a chance to consider the deal then but wanted, instead, to hold out for Congress to pass an extension of all the Bush-era tax rates. 

That led Boehner's backup plan to get ripped by Pelosi who said the “B” stood for “befuddled.”

Senate Majority Leader Harry Reid (D-Nev.) wasted no time chiming in, either, saying — you guessed it — he didn't support it. 

Meanwhile, the Senate continued work on a $60.4 billion measure that would provide funding for Hurricane Sandy victims. 

But Republican opposition increased throughout Tuesday with Sens. Lindsey Graham (S.C.), Roy Blunt (Mo.) and John McCain (Ariz.) suggesting that lawmakers consider a smaller bill for immediate needs instead of adding a big chunk to the deficit as Congress seeks out cuts. 

Meanwhile, the House still hasn't said what kind of funding it believes is appropriate. 

So, maybe Wednesday will bring more clarity on the fiscal cliff and Sandy. 

WHAT ELSE TO WATCH FOR 

Credit check: The Senate Banking Subcommittee on Financial Institutions and Consumer Protection will hold a broad hearing on Wednesday looking at problems consumers are having with their credit reports with testimony from several industry experts. 

The hearing is expected to hit on better oversight of the three major credit reporting agencies — TransUnion, Experian and Equifax.

More than 8 million people filed complaints about credit agencies last year, according to a recent Consumer Financial Protection Bureau (CFPB) report.

More on the cliff: Outgoing Senate Budget Chairman Kent Conrad (D-N.D.) will head to the National Press Club on Wednesday to talk about the state of the negotiations surrounding looming tax hikes and spending cuts scheduled to happen at the first of the year. 

BREAKING NEWS 

Banking on a new Treasury Secretary: The Obama administration has reportedly approached Kenneth Chenault, the head of American Express, about joining the president's team, possibly as Treasury secretary.

The report noted that White House Chief of Staff Jack Lew remains the most likely person to replace outgoing Treasury Secretary Timothy Geithner, but that Chenault could have some role in Obama's second term.

LOOSE CHANGE

Continued push: More than 100 businesses are continuing to press Congress to pass legislation before the end of the year that suspends tariffs on imports that are necessary to produce certain U.S. products. 

The National Association of Manufacturers (NAM) is spearheading the effort to pass the Miscellaneous Tariff Bill (MTB) either on its own or as part of a year-end deficit-reduction package. They argue the measure is needed to bolster U.S. manufacturing.

"The NAM is working with both House and Senate members on a path forward for the MTB, and to make clear the critical importance of this legislation for manufacturers’ competitiveness," Linda Dempsey, NAM's vice president of international economic affairs told The Hill in an email on Tuesday.

"Failure to pass a bill by the end of the year will result in increased costs on manufacturers, adding to the uncertainty already facing businesses." 

Galante support: Sen. Bob Corker (R-Tenn.), a member of the Senate Banking Committee, announced on Tuesday that he will support Carol Galante to take the helm of the Federal Housing Administration following an agreement to make changes to FHA underwriting requirements along with other reforms, which would go into place by Jan. 31. 

Galante, who is the acting commissioner, sent Corker a letter on Tuesday detailing the reforms.  

“I’ve been working closely with Secretary Donovan and Acting Commissioner Galante over the past few weeks on ways we can put FHA on sound financial footing," Corker said. 

"Given the reforms she is committed to, I believe that having an accountable commissioner with her resolve and expertise will be in the best interest of the taxpayer."

ECONOMIC INDICATORS 

MBA Mortgage Index: The Mortgage Bankers Association releases its weekly report on mortgage application volume. 

Housing Starts-Building Permits: The Commerce Department releases its November report on the number of residential units under construction along with building permits, which allow work to start and are a forward-looking indicator of where the sector is headed. 

WHAT YOU MIGHT HAVE MISSED

— GOP tax-writer Camp says he's cancer-free

— Builder confidence hits nearly seven-year high

— Price named Budget vice chairman

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