Benzinga's Political Roundup July 6, 2011

President Barack Obama asked Congress yesterday to get a deal done on raising the debt ceiling, as opposed to a makeshift, short-term solution. Obama also wants tax hikes included in the deficit reduction deal.

Yesterday, Moody's cut Portugal's credit standing to junk, warning the country may need a second bailout.

There may not be a contribution by private bondholders for a new Greek bailout, as it looks as if banks have sold off a substantial proportion of their Greek government-bond holdings despite saying they would not.

The FDIC is going to back a clawback provision, and take away up to two years of Wall Street executives' pay if they are found responsible for the collapse of a major financial firm.

The People's Bank of China said it will raise its benchmark deposit and lending rates by 25 basis points.