Receiving Wide Coverage ...
A Deal to Be Had? Finally? All eyes remain fixed on Washington this week, as patience wears thin and lawmakers try to come up with an agreement to end the government shutdown and avert the looming debt ceiling. Democrats and Republicans have so far refused to negotiate with one another, but signs of a deal may be starting to emerge. (The game of chicken can only go on so long before the cars actually crash.) GOP Rep. Paul Ryan of Wisconsin shared a plan with fellow conservatives on Wednesday that would raise the debt ceiling temporarily, buying lawmakers more time to come up with a comprehensive deficit-reduction agreement. House Republicans are set to meet with President Obama on Thursday for the first time since the shutdown began on Oct. 1. Wall Street Journal, New York Times, Financial Times
Meanwhile, the Fallout Continues: With no congressional deal in sight yet, the Journal reports that investor anxiety has spread to the short-term debt markets, especially for Treasury bills set to mature on or around Oct. 17 the day the wheels really fall off the wagon and the Treasury Department must start paying U.S. bills with cash on hand. Still, the Times and ProPublica's Jesse Eisinger warn that the financial markets haven't sufficiently priced in the threat of a U.S. default, cautioning that "any plunge now would be a good thing. Plunges in markets now could help prevent greater turmoil later." The Times also chronicles the difficulties facing small business owners during the shutdown, which bars their access to Small Business Administration-guaranteed loans. (You'll recall American Banker provided its own comprehensive look at what the shutdown means for banks, including the impact to SBA, last week.)
Yellen Gets The Nod: Obama officially nominated Janet Yellen to chair the Federal Reserve Board, though the Journal reports that her first key test will come at a confirmation hearing later this fall. Still, many economists surveyed predicted her monetary policy decisions would not prove all that different from those of her predecessor, Ben Bernanke. The Times, meanwhile, provides a nice overview of Yellen's life, including a look at her move from the world of academia to the Fed. Wall Street Journal, New York Times
Greener Pastures For Meredith Whitney: The analyst, once hailed as an early forecaster of the financial crisis, is said to be shuttering the doors of the research division at her namesake firm and is planning to open a hedge fund next month. The news was first reported by Bloomberg. Wall Street Journal, New York Times, Financial Times
Wall Street Journal
The Securities and Exchange Commission never brought charges against 20% of people warned they violated securities laws between 2010 and 2012, according to data obtained by a Freedom of Information Act request. The agency uses a so-called Wells notice to give some parties a heads up about potential enforcement actions it then has 180 days to act or drop the case.
Several banks are responding to investigations by European regulators over possible foreign-exchange market manipulation.
JPMorgan has initiated the sale of its physical commodities business, which has attracted many potential suitors since the bank announced in July its decision to sell the unit.
Somalia is warning that its citizens will be in dire straits if Barclays, the last major bank offering banking services to money transfer companies in the war-ravaged country, stops the practice. Around 5 million people, reliant on the wire transfer services to receive money from relatives to pay for basics needs, would be affected if the bank stops the service, which it said it would do as a result of regulatory pressure "to ensure appropriate checks and controls were in place to avoid potential money laundering."