Morning Scan
Friday, November 20, 2009
Receiving Wide Coverage ... Fed Under Fire: The House Financial Services Committee approved a proposal to allow Congress to order audits of all the Fed's lending programs as well as of its basic decisions to set monetary policy by raising or lowering interest rates. The Journal said the vote was "the latest blow to the central bank, which has been become a lightning rod for politicians responding to popular anger that Wall Street was bailed out…
Morning Scan
Thursday, November 19, 2009
Morning Scan
Wednesday, November 18, 2009
Receiving Wide Coverage ... Goldman's Rehabilitation: Goldman said it is launching a $500 million small-business assistance program that includes an advisory panel with billionaire investor Warren Buffett. The papers portrayed the program as an attempt to appease public anger over the firm's compensation. The Times said, "After first staunchly defending its outsize profits and pay, and then bristling at calls for restraint in these tough economic times, Goldman is trying a new tack: It is apologizing…
Morning Scan
Tuesday, November 17, 2009
Receiving Wide Coverage ... Bernanke's View: Federal Reserve chairman Ben Bernanke warned that high unemployment and banks' reluctance to lend will likely slow the economic recovery next year. The Journal said his comments "marked a mild departure for the Fed chief" who has spent months reassuring the public that low interest rates and government rescue programs had planted the seeds of an upturn. The Post said "Bernanke's focus on the weak job market and his opinion…
Morning Scan
Monday, November 16, 2009
Receiving Wide Coverage ... Credit Thaw: A front page story in the Journal said corporate failures have slowed, as companies once on the verge of default have found a new life. These companies are now refinancing their balance sheets with new debt, pushing out maturities on existing loans or using distressed-debt exchanges to avoid a bankruptcy filing. But the paper said many analysts worry the refinancing wave is just "kicking the can" down the road, without…
Morning Scan
Friday, November 13, 2009
Receiving Wide Coverage ... FHA's Low Blow: An independent audit confirmed that the FHA's cash reserves have fallen to a level below what is required by law. The Journal said the projected capital losses in 2009 "were worse than the most pessimistic assumptions from last year's review, and some housing analysts and economists say it is increasingly likely the agency will need to ask Congress for money in the years ahead." The Times said the FHA…
Morning Scan
Thursday, November 12, 2009
Receiving Wide Coverage ... Benmosche Backpedals: The papers, citing people familiar with the matter, said AIG CEO Robert Benmosche told employees Wednesday he remains "totally committed to leading AIG through its challenges" while acknowledging frustrations with the government's stance on compensation at the company. The Journal, which broke the news this week that Benmosche had threatened to resign, partly due to the government's curbs on pay at AIG, said some members of AIG's board discussed the…
Morning Scan
Wednesday, November 11, 2009
Receiving Wide Coverage ... Fed Under Fire: Sen. Banking Committee Chairman Christopher Dodd proposed a financial overhaul that would create a single banking regulator and a consumer financial protection agency. The papers focused on the fact that it would bypass the Federal Reserve as a systemic risk authority and strip the central bank's power to regulate banks. The Journal said the plan posed "the biggest legislative challenge to the central bank in decades" and illustrates "how…
Morning Scan
Tuesday, November 10, 2009
Receiving Wide Coverage ... Card Watch: A front-page article in the Times' "Card Game" series looked at the credit card industry's "squeeze on customers" ahead of the new card law's implementation deadline, in the midst of Congressional efforts to speed up that implementation. "The higher rates and fees reflect the grim new realities of the credit card industry — the percentage of uncollectible balances has hit a record even as a new law may further limit…
Morning Scan
Monday, November 9, 2009
Receiving Wide Coverage ... GSEs: The Treasury blocked Fannie Mae's proposed sale of nearly $3 billion in low-income housing tax credits to Goldman Sachs and Berkshire Hathaway on Friday after concluding that the deal was too costly for taxpayers. The Journal said, "The extraordinary move was the latest sign of tensions within the Obama administration over how to balance political and financial pressures resulting from the housing crisis." Wall Street Journal, New York Times …
Morning Scan
Friday, November 6, 2009
Housing Aid: Fannie Mae reported a $19.8 billion loss for the third quarter and announced yesterday it would draw a fresh $15 billion from the Treasury Department. The Journal and the FT focused on a separate announcement that Fannie has reached an agreement to sell about $2.6 billion in unused low-income-housing tax credits to unnamed buyers. The Journal noted that Fannie has received approval for the deal from the FHFA, but said the Treasury Department…
Morning Scan
Thursday, November 5, 2009
Receiving Wide Coverage ... Regulatory Overhaul Update: The Journal said Senate Banking Committee Chairman Christopher Dodd is readying legislation that would "dramatically redraw how the financial system is regulated, setting the chamber on a collision course with both the House of Representatives and the Obama administration, which have championed markedly different approaches." Another article pointed out that pending legislation aimed at tightening regulation of financial services would give state authorities significant clout in overseeing hedge funds,…
Morning Scan
Wednesday, November 4, 2009
Receiving Wide Coverage ... British Breakup: The U.K. finalized plans to inject aid into Lloyds Banking Group and Royal Bank of Scotland on the condition that they sell off major assets. The Journal said the announcement "shows how much has changed among European regulators now that worries about systemic risk are in the rearview mirror. Earlier in the banking crisis, the prevailing view was that regulators had to tolerate torrents of aid showered on banks by…
Morning Scan
Tuesday, November 3, 2009
Receiving Wide Coverage ... Pay Curbs: Federal Reserve officials told top bankers Monday they should start overhauling their employees' pay packages as soon as possible, even before the Fed finalizes its proposed compensation rules. The Journal said people familiar with the meetings didn't describe them as confrontational or combative. Many of the banks aren't expected to push back aggressively against the proposal, in part because it stops short of direct caps on pay. The FT said…
Morning Scan
Monday, November 2, 2009
Receiving Wide Coverage ... CIT Update: CIT Group finally bit the bullet and filed for Chapter 11 bankruptcy protection. The papers looked at the impact for various stakeholders. The Journal said, "Now, the lender to nearly a million small and midsize businesses must maintain its customer base as it tries to rehabilitate." It noted that the plan "is among the first attempts to restructure a financial firm in bankruptcy court and have it emerge relatively intact."…
