5:46PM California's Angelides calls for budget on S&P move by Luisa Beltran
NEW YORK (CBS.MW) -- Standard & Poor's placed the state of California on creditwatch with negative implication, causing State Treasurer Phil Angelides on Wednesday to call for the state legislature to adopt a smart budget. If the S&P were to lower the state's credit rating down one notch to "A-," the move would result in about $400 million in borrowing costs. "The ongoing recall effort and the State's budget stalemate are damaging the State's financial standing and sending a dangerous message of political instability," Angelides said in a statement.