First time the president weighed in on the scandal that ended the career of his c. I. A. Director and derailed his nominee to lead nato. President obama told a News Conference no classified information was compromised in the email and sex scandal. He was asked about David Petraeus, perhaps most distinguished army general of his generation, who quit the c. I. A. Last week after an f. B. I. Investigation discovered that he was having an affair. General petraeus had an extraordinary career. He served this country with great distinction in iraq, in afghanistan, and as head of the c. I. A. By his own assessment, he did not meet standards that he felt were necessary as the director of the c. I. A. With respect to this personal matter that he is now dealing with, with his family, and with his wife. And its on that basis that he tendered his resignation, and its on that basis i accepted it. Pelley in the same question, the president was asked about general john allen, commander of the u. S. Forces in afghanistan and his nominee to lead nato. But mr. Obama was silent on allen. The same f. B. I. Investigation uncovered emails between allen and a socialite, jill kelly, who hosted functions for Central Command in tampa, where both petraeus and allen had worked. Based on those emails, mr. Obama placed allens nomination to nato on hold. Bob orr has our story tonight from washington. Reporter the career of general john allen hinges on the content of some 200 emails he exchanged with jill kelly. Sources say allen was confronted with some of the emails by the chairman of the joint chiefs of staff martin dempsey. Allens attorney late today issued a statement saying general allen intends to fully cooperate with the Inspector General investigators and directed his staff to do the same. Allen has told officials hes done nothing wrong and has written nothing to kelly that would preclude his nomination. Officials have characterized the communications with kelly as flirtatious, saying they contain nothing of an explicit sexual nature. But one official said the e mails, if made public, would be embarrassing. Defense secretary leon panetta was asked about allen today. No one should leap to any conclusions here. General allen is doing an excellent job at i. S. A. F. In leading those forces. He certainly has my continued confidence to lead our forces and to continue the fight. But his nomination has been put on hold as a prudent measure until we determine what the facts are, and we will. Reporter the emails between allen and kelly were discovered by the f. B. I. In the course of an investigation that uncovered the affair between David Petraeus and paula broadwell. A search of broadwells computer files turned up intimate emails with petraeus, and also revealed she may have mishandled some classified information that shed collected for her book. But Law EnforcementOfficials Say the investigation never uncovered a threat to national security. An f. B. I. Director robert mueller, told Congressional Intelligence Committee leaders today that was the primary reason they were not briefed on the investigation. The white house wasnt told until after the election. The president said the f. B. I. Was following its own guidelines and hed withhold judgment on the delayed notification. It is also possible that had we been told, then youd be sitting here asking a question about why were you interfering in a criminal investigation . Reporter no one has been charged in case with a crime but late today the army did suspend paula broadwells security clearance. Scott. Pelley thanks, bob. The air force said today it is pulling jill kellys gate pass for mcgill air force base. She was apparently given access there to facility her meetings for Central Command. Two u. S. Senators today told the president they will not allow him to make americas u. N. Ambassador his new secretary of state. Susan rice is widely mentioned as the replacement for secretary hillary clinton. But republican senators john mccain and Lindsey Graham said they questioned statements that rice made after four americans were killed in that september attack on the u. S. Consulate in benghazi, libya. It is within the power of a single senator to stop a nomination, which is why the president got his back up today. If senator mccain and senator graham and others want to go after somebody, they should go after me. And im happy to have that discussion with them. But for them to go after the u. N. Ambassador who had nothing to do with benghazi and was simply making a presentation based on intelligence that she had received and to besmirch her reputation, is outrageous. When they go after the u. N. Ambassador apparently because they think shes an easy target, then theyve got a problem with me. And should i choose, if i think that she would be the best person to serve america in the capacity of the state department, then i will nominate her. Thats not a determination ive made yet. Pelley this will be a donnybrook. So we asked Wyatt Andrews to fill us in. Reporter ambassador rice ignited the controversy with her assertion five days after the benghazi assault that there was no evidence it was a terrorist attack. This was rice on cbs face the nation. We do not have information at present that leads us to conclude that this was premeditated or preplanned. Reporter but by that time, several intelligence reports had called it a preplanned attack and republicans complained that rice had been misleading. Senators mccain and graham escalated the name calling today. And the reason i dont trust her is because i think she knew better and if he didnt know better she shouldnt be the voice of america. Reporter when the president then demanded that mccain and graham come after him instead, mccain did. If the president thinks that we are picking on people, he really does not have any idea of how serious this issue is. Reporter john mccain and other Senate Republicans are now pushing for a watergatestyle select committee to investigate benghazi and the administrations response. And now, scott, the president also faces an allout battle if he nominates susan rice to replace secretary clinton. Pelley wyatt, thank you very much. Most of the president s News Conference today centered on his idea for avoiding the automatic tax increase and spending cuts that are due at the end of the year, the socalled fiscal cliff. Investors werent convinced. The Dow Jones Industrial average slipped more than 185 points to close just under 12,600. That is a threemonth low. We asked nancy cordes to fill us in on mr. Obamas proposal and the republican reaction. Nancy. Reporter well, scott, the president argued today that the simplest thing congress could do to avert the fiscal cliff would be for the republicanled house to pass a bill extending those low bushera tax rate wheres everyone in the middle class, even as he and republicans continue to debate over tax cuts for the wealthy. Step number one that we can take in the next couple of weeks provide certainty to middle class families, 98 of families that make less than 250,000 per year, 90 of maul businesses that their taxes will not go up a single dime next year. Give them that certainty right now. Reporter but Republican HouseSpeaker John Boehner has balked at that idea. It would take away most of his partys leverage in fiscal cliff negotiations. There are a lot of issues on the table that have to be resolved by the end of the year, and i think ive laid out a reasonable framework where both parties can work together, and im looking forward to going down to the white house on friday and beginning that conversation. Reporter boehner and other Top Republicans have proposed eliminating deductions and loopholes that benefit the wealthy instead raising their tax rates. We are not going to hurt our economy and make job creation more difficult which is exactly what that plan would do. Reporter today the president argued closing loopholes alone wont be enough to cut the deficit. Hell have that argument face to face with wayne or friday. One of the most frequent criticisms weve heard over the past few years from members on both sides if you havent done enough to reach out and build relationships. Are there concrete ways you plan to approach your relationships with congress in the second term . Look, i think theres no doubt that i can always do better. And i dont exempt myself from needing to do some self reflection, and see if i can improve our working relationship. There are going to be times where there are fights, and i think those are fights that need to be had. Reporter the president warned today that if the two sides dont strike a deal, it could hurt the Holiday Shopping season and dampen holiday hiring, scott, as people prepare for the possibility that their tax rates will go up on january 1. Pelley thanks, nancy. It was all across europe today that hundreds of thousands of protesters in 23 countries let their leaders know about how they feel about severe job and budget cuts. Mark phillips is in spain where the Unemployment Rate is now 25 . Reporter it can be hard to tell when countries with alreadystruggling economies are brought to a standstill, but that was the intention of the demonstrators, workers and the unemployed from all walks of life, who organized a general strike in spain and elsewhere. Javier encinar lost his phone company job three years ago. What are you protesting about today . Reporter the strike may be economic paralysis, all the more obvious. Much of madrid was closed for business. Theres a growing anger here that as the government tries to cut its debt by raising taxes and cutting jobs and pensions, people have endured about as much as they can take. The suicide of a woman being evicted from her home because she couldnt pay the mortgage has added to the outrage of protesters like jose marie garcia. Reporter people are becoming reporter people are becoming desperate . Reporter but its unclear what demonstrations like this can accomplish. Economic policy isnt made here on the streets of madrid or in athens. Its made by the European Union in berlin and brussels, by the people who are bank rolling the bailouts, and thats whats causing its frustration. People feel theyve lost control of their own destiny. Protesting and striking are the only options they have. Mark phillips, cbs news, madrid. Pelley israel today assassinated the commander of the hamas military wing with a Precision Air strike, and they had the tape to prove it. The warplane scored a direct hit on ahmed jabaris car in gaza. Jabari was blamed for numerous terror attacks. Israel followed up with a blistering series of airstrikes in gaza against hamas Training Facilities and rocket launchers. At least ten palestinians were killed, and the offense seems likely to set off heavy fighting with gaza militants who have a large arsenal the rockets. The owner of the pharmacy linked to the deadly meningitis outbreak is hauled before congress. 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Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. Tell your doctor if you have a heart condition or high Blood Pressure before taking it. With copd, i thought id miss our family tradition. Now symbicort significantly improves my lung function, starting within 5 minutes. And that makes a difference in my breathing. Today, were ready for whatever swims our way. Ask your doctor about symbicort. I got my first prescription free. Call or click to learn more. [ male announcer ] if you cant afford your medication, astrazeneca may be able to help. Pelley the meningitis outbreak continues to spread. 23 more cases were reported today for a total of 451 cases with 32 dead. The outbreak is linked to contaminated drugs from a pharmacy called the new England Compounding Center. The owners havent had much to say, and jim axelrod reports that a subpoena from congress didnt change that today. Reporter the president of new England Compounding Center arrived on capitol hill facing questions at every turn. What was the breakdown that led to the contamination and the meningitis outbreak . Reporter but nearly two months after the fungal meningitis outbreak traced to his company, barry cadden had only this to say. On advice of counsel i respectfully decline to answer on the basis of my Constitutional Rights and privileges. Reporter caddens refusal to testify came right after an emotional plea from joyce lovelace. My family is bitter. We are angry. And i just come here begging you to do something about the matter. Reporter eddie lovelace, her husband of 55 years, was the first to die from the fungal meningitis. Whoever is responsible, their lack of attention to their duties cost my husband his life. Reporter to some on the house subcommittee, that meant the food and drug administration. The f. D. A. Conducted three inspections of n. E. C. C. Since 1998. The agency wrote one warning letter, but never shut the company down. Congressman Cliff Stearns is the chairman. This was a complete and utter failure on the part of your agency. Reporter f. D. A. Commissioner dr. Margaret hamburg said n. E. C. C. Was a compounder, a company that alters drugs to meet the special needs of a specific patient. She claimed that would make the state of massachusetts responsible for oversight. We feel there are significant gaps in our authorities. Reporter that didnt sit well with both republicans and democrats who pointed to evidence that n. E. C. C. Was acting as a largescale manufacturer. Leadership is easy if youre willing to accept it, and you are not reporter but, according to the nonpartisan Congressional Research service, there is a regulatory gap, and if the f. D. A. Is going to oversee compounding pharmacies, scott, Congress Must give it more authority. Pelley jim, thank you. 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