August 6

By Roosevelt Institute |

daily-digest-150What you need to know to navigate today’s economic debates.

AIG Breakup Is Fee Bonanza (WSJ)
Wall Street banks and lawyers could collect nearly $1 billion in fees from the Fed, BoA, and AIG to help manage and break apart the insurer.

U.S. Considers Remaking Mortgage Giants (WP)
‘Bad Bank’ Would Wipe the Slate Clean for Fannie Mae, Freddie Mac by Taking Their Toxic Loans.

Fed Reviews Two Programs As Markets Look More Stable (WSJ)
Fed to extend TALF or Term Asset-Backed-Securities Loan Facility aimed at reviving consumer and business lending markets.

America Needs a Single Bank Regulator (FT)
Mark Warner says competition among federal regulators makes no more sense in banking than in food safety or air traffic control.

How Japan Restored Its Financial System (WSJ)
Bank of Tokyo-Mitsubishi president Katsunori Nagayasu says the focus was on better risk controls, not higher capital reserves.

SEC Chief in Call for Funding Shake-Up (FT)
SEC chief Mary Schapiro says the organization should fund itself directly from industry fees, so that it can tackle more complex investigations and invest more in technology and skilled people.

Flash Trading Reversal at SEC May Hit Direct Edge (BLM)
The SEC will seek to stop the practice in which some brokers get a split-second advantage in viewing requests to buy and sell stock.

An Evaluation of the First 200 Days of Obama Economics (JeffFrankel)
Harvard’s Jeff Frankel reviews Obama’s economic progress.

Have the Stimulus Programs Failed? (Brookings)
Senior Economics Fellow Gary Burtless argues Obama’s stimulus program “has delivered timely and critical relief to millions of families hurt by the recession.”

Banking Bandits Get Their Reward (Nation)
Robert Scheer asks whether we bail out the banks that caused the problem or do we start with government relief for distressed mortgage holders?

Despite Bailouts, Business as Usual at Goldman (NYT)
Goldman executives are dismiss critics who argue the bank is playing a heads-we-win, tails-you-lose game with American taxpayers.

Goldman Has Record Trading Days (FT)
Goldman Sachs traders made more than $100m in revenues on each of a record 46 days during the second quarter.

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