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Apr 14, 2011

CBSNEWS | Political Hotsheet : National Day of Prayer ruled constitutional

The CBS News Political Hotsheet newsletter


Appeals court overturns decision finding that annual day or prayer violates separation of church and state
Read full story
National Day of Prayer ruled constitutional

House passes budget bill despite GOP divisions But 59 Republicans bucked House Speaker John Boehner and voted against the spending bill, in spite of its big cuts

Obama gears up for Chicago fundraisers Obama will host three fundraising events in Chicago on Thursday, admission for which ranges from $100 to $25,800 per guest

TSA child pat-down video spurs new legislation A Republican in the House is introducing a bill to prohibit TSA pat-downs on minors without parental consent, following a video that caused outrage

Ron Paul likely to enter 2012 race in May Libertarian-leaning Congressman forms "testing the waters" account; aide says better than 50-50 chance he will enter presidential race

CBS Evening News with Kate Courik

The CBS Evening News with Katie Couric newsletter



Hi everyone,
It shouldn't happen once. But now it's happened seven times - air traffic controllers, asleep in the tower. Today, the man who runs the nation's air traffic control system was ousted from his job. Wyatt Andrews has that story. And Armen Keteyian reports that key employees falling asleep "at the switch" is a growing concern among safety experts. The next big battle in Congress will be over raising the nation's debt ceiling. Anthony Mason explains why this really is a big deal. If the government can't borrow more money, it could default on some payments, with potentially disastrous results. This is Day 100 of the 112th Congress, which features a large number of freshman lawmakers. With one big budget fight under their belts and another looming, we'll check in to see how they're doing - and how they feel about their new jobs. The Libyan rebels say they could defeat Qaddafi, if only they had better weapons. But how are they as fighters? Allen Pizzey went to a rebel training camp, and found they're woefully lacking in discipline and skill. Katie Couric

Breaking the cycle of repeat crime offenders Pew study says about 40% of convicts end up back behind bars within 3 years of release; One prison tries to beat the odds

Community rallies around teen with brain cancer Chip's Nation helps sick teen and his family by helping with chores and raising money for medical care

Student loan debt rising among Americans Although many economists call student loans good debt, the burden affects choices of many Americans

Financial & Forex Info News | Reuters - Investor Update: Safe bets buoy Wall St as growth questioned


Safe bets buoy Wall St as growth questioned
NEW YORK (Reuters) - Stocks that outperform in a weak economy helped buoy the Dow and S&P 500 on Thursday as concerns about faltering growth and inflation prompted investors to seek out less volatile names. | Full Article

Google misses Street profit expectations
April 14, 2011 04:26 PM ET
SAN FRANCISCO (Reuters) - Google Inc fell short of Wall Street's first-quarter profit target as operating expenses surged, even though net revenue grew 29 percent year-over-year. | Full Article
Core producer prices, jobless claims rise
April 14, 2011 02:21 PM ET
WASHINGTON (Reuters) - Prices paid by U.S. factories picked up pace in March as the disruption caused by Japan's earthquake began to be felt in the auto industry and fuel prices rose strongly. | Full Article
U.S. inflation seen picking up but no grave threat: Reuters poll
April 14, 2011 10:45 AM ET
NEW YORK (Reuters) - U.S. inflation is likely to climb higher than previously thought but the recovery will not stall as interest rates will be held down until early next year, according to the latest Reuters poll of economists. | Full Article
Glencore seeks up to $12.1 billion in IPO, names chair
April 14, 2011 02:32 PM ET
HONG KONG/LONDON (Reuters) - Top commodity trader Glencore aims to raise up to $12.1 billion with a dual listing that will boost firepower for deals at the height of a resources boom and make paper fortunes for its publicity-shy partners. | Full Article

NYT: | Afternoon Business News: Resistance to Jaitapur Nuclear Plant Grows in India


Resistance to Jaitapur Nuclear Plant Grows in India

As a nuclear disaster unfolds in distant Japan, a growing number of Indian scientists, academics and others have expressed concern about plans for a coastal nuclear plant.
News Analysis

As Deficit Debate Begins in U.S., Less-Than-Promising Results in Britain

At the center of both experiences is the question of whether harsh spending cuts will save or sunder an economic recovery.

In Financial Crisis, No Prosecutions of Top Figures

Several years after the financial crisis, no senior executives of major financial institutions have been charged, and a collective government effort has not emerged.

BP Tells Shareholders of Efforts to End Rosneft Rift

The BP chief executive, Robert W. Dudley, played down the severity of the dispute, saying the company's relationship with its TNK-BP partners was "noisy" but not "dysfunctional."
Bucks Blog

Plan Cuts Reverse-Mortgage Counseling

Federal budget deal cuts funds for reverse-mortgage counseling.

MarketWatch | Market Pulse: Dow industrials, S&P finish higher after late-day reversal; Nasdaq edges lower

By Laura Mandaro

SAN FRANCISCO (MarketWatch) -- U.S. stocks made a late-session dash higher Thursday, pushing the Dow average and S&P 500 to a higher close, helped by a rally in consumer staples shares and a gains in natural resource stocks alongside higher oil and gold prices. The Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (DJIA 12,285.15, +14.16, +0.12%) ended up 14.16 points, or 0.1%, at 12,285.15, with Kraft Foods Inc. /quotes/comstock/13*!kft/quotes/nls/kft (KFT 32.97, +0.02, +0.06%) and Coca-Cola Co. /quotes/comstock/13*!ko/quotes/nls/ko (KO 68.31, -0.03, -0.04%) leading advancers. The S&P 500 /quotes/comstock/21z!i1:in\x (SPX 1,314.52, +0.11, +0.01%) edged up 0.11 point, or 0.01%, to 1,314.52. Shares of supermarket chain Supervalu /quotes/comstock/13*!svu/quotes/nls/svu (SVU 10.51, -0.10, -0.97%) surged 17% after it issued a rosy forecast. An earlier drop in the S&P 500 to 1,302 likely pulled in investors looking to buy the index near its support level of 1,300, said Elliot Spar, options/markets strategist at Stifel Nicolaus. The Nasdaq Composite /quotes/comstock/10y!i:comp (COMP 2,760.22, -1.30, -0.05%) ended down 1.3 point, or 0.1%, at 2,760.22.

The Washington Post | Breaking News: House passes 2011 funding deal that would keep government running through late September

Breaking News Alert: House passes 2011 funding deal that would keep government running through late September
April 14, 2011 3:09:05 PM

The House on Thursday passed a budget deal that will keep the government running through late September while cutting $38.5 billion in federal spending. The deal passed the House on a bipartisan 260-to-167 vote, with 179 Republicans and 81 Democrats voting in favor; 59 Republicans and 108 Democrats opposed the measure. The deal now goes to the Senate, which is expected to approve it later Thursday. President Obama must sign the measure into law by midnight Friday in order to avert a government shutdown.

The Economist | Business This Week: Highlights of New Coverage from April 9th - 15th 2011

Business This Week

» An independent commission looking at reforms to Britain's banking industry produced its interim report. The Vickers commission recommended that systemically important banks should set aside 10% of capital as a buffer against hard times and ring-fence their retail operations. It also proposed that Lloyds Banking Group, Britain's biggest retail bank, should dispose of more branches. The outlines were generally welcomed, though critics grumbled that the commission had retreated from advocating a more drastic shake-up of the industry. See article

How it all happened
» A Senate committee produced an investigative report, assembling thousands of e-mails and other correspondence, into events and practices on Wall Street leading up to the banking collapse of 2008. It reserved some of its heaviest criticism for Goldman Sachs. The committee had bipartisan support, unlike the Financial Crisis Inquiry Commission, which reported in January.
» Federal bank regulators issued a cease-and-desist order against America's largest mortgage providers, including Bank of America and JPMorgan Chase, requiring them to overhaul their foreclosure practices and intensify efforts to mitigate losses for borrowers. Talks over a separate settlement between the banks, state attorneys-general and the Justice Department remain bogged down.
» NYSE Euronext said it would stick with a merger bid proposed by Deutsche Börse, rejecting a rival, and higher, offer made jointly by NASDAQ OMX and IntercontinentalExchange. The owner of the New York Stock Exchange insists that a tie-up with the German bourse would be of greater benefit.
» Jean-Claude Trichet defended the decision of the European Central Bank to raise interest rates for the first time in three years. The ECB lifted its main rate from 1% to 1.25% on April 7th to tackle inflation in the euro zone.
» Inflation in Britain unexpectedly fell in March, to 4%, as retailers slashed prices to entice reluctant consumers. The news will affect the Bank of England's thinking on whether and when to raise interest rates this year.
» The IMF released its twice-yearly projection of world economic growth, forecasting that global GDP will increase by 4.4% this year. The fund said that concerns were fading over a "double-dip" recession, though the recovery could be threatened by higher commodity prices, especially oil. Regarding Japan, the IMF recognised that the "immediate fiscal priority is to support reconstruction" after last month's earthquake, but urged the country to link such spending to a clear strategy for reducing public debt.
» Glencore's announcement that it plans to list up to 20% of its shares in an initial public offering excited the markets. For months investors have been waiting for the world's biggest commodities-trading company to confirm rumours that it would float on the stockmarket. Swiss-based Glencore's IPO is expected to raise up to $11 billion. See article

Paying for wrong decisions Click Here!
» Renault's chief operating officer stepped down over a scandal surrounding wrongful accusations of corporate espionage. The carmaker's head legal counsel, boss of human resources, general secretary and security chief also resigned. In January Renault sacked three executives for allegedly selling company secrets, but it soon emerged that it had been duped by fraudsters. The government made clear it expected heads to roll. Carlos Ghosn, Renault's chief executive, managed to hold on to his.
» In Detroit a Chinese engineer who worked for Ford was sentenced to six years in prison for copying sensitive company documents on engine systems before he left to join a Chinese carmaker.
» Mark Zuckerberg, Facebook's boss, had a mixed week. An appeals court threw out a claim by the Winklevoss twins that they were misled over the true value of Facebook in a settlement that noted their input as Harvard students into creating the social-networking site (as portrayed in the film "The Social Network"). But after their case was dismissed, new evidence was submitted in a separate dispute over the ownership of Facebook—Paul Ceglia, another former acquaintance of Mr Zuckerberg, says a development deal between the pair entitles him to a large chunk of the company. See article

Flip flops
» Cisco decided to stop making the popular Flip video camera as part of its strategy to rein in its troubled consumer-products division and refocus on its core businesses. Cisco bought Flip in 2009 for $590m. The small device spurred many copycat gadgets, but smartphones now incorporate better video technology.

The Economist | Politics This Week: Highlights of New Coverage from 9th - 15 April 2011

Politics This Week

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» Barack Obama called for a reduction of $4 trillion over 12 years in the budget deficit, to be paid for by a mixture of spending cuts and tax rises on the rich. Although Mr Obama only unveiled his budget in February, he has been forced to lay out new proposals in response to an alternative document put forward by Paul Ryan, the Republican chairman of the House Budget Committee, that calls for a radical overhaul of Medicare and Medicaid, among other things. Mr Obama said that his blueprint offered a more "balanced" approach to reducing the deficit.
» With just minutes remaining to a deadline that would have shut down the federal government, Republicans in Congress reached an agreement with the White House to fund services in return for more extensive spending cuts. See article
» Many Democrats reacted furiously to the deal to avoid a shutdown. Vincent Gray, the mayor of Washington, DC, was arrested along with 40 other people at a protest. Republicans included a measure in the deal that bans the city from using local revenues to fund abortions. See article
» While the theatrics over the deficit played out in Washington, Mitt Romney quietly entered stage right to declare officially his intention to run for president by setting up an exploratory committee. He is the Republican Party's putative front-runner; he announced his entry to the race from New Hampshire, which holds the first primary in 2012. See article

Presidential prerogative Click Here!
» In Côte d'Ivoire Laurent Gbagbo was detained by troops loyal to Alassane Ouattara. Mr Gbagbo lost to Mr Ouattara in a presidential election last year but had refused to leave office, plunging the country into strife. Mr Ouattara's troops were backed by France, the former colonial power, and the UN. See article
» The British and French governments criticised NATO for failing to destroy enough heavy weaponry used by Muammar Qaddafi's forces in Libya to allow rebels to break an ongoing stalemate. See article
» Demonstrations escalated in Syria as the government cracked down hard, arresting 100 people in a single day. See article
» Hosni Mubarak, the former Egyptian president, was detained for up to 15 days for questioning about charges of corruption and abuse of office. See article

One man's terrorist…
» A jury in Texas acquitted Luis Posada Carriles, an alleged anti-communist terrorist, of perjury and obstruction of justice. Cuba and Venezuela condemned the verdict and accused the United States of sheltering him. See article
» Uruguay's Senate voted to annul a law that had given military officers immunity from prosecution for crimes committed during the country's 1973-85 military dictatorship (it must be approved by the lower house of Congress to take effect). The immunity law was upheld in two referendums, in 1989 and 2009.
» Daniel Ortega, Nicaragua's president, issued a decree moving three municipalities with large numbers of opposition voters from one electoral department to another. The unconstitutional gerrymandering should help Mr Ortega's party win more seats in an election this November.
» Ollanta Humala and Keiko Fujimori, two populist candidates, finished first and second in the first round of Peru's presidential election. A run-off will be held in June. See article
» A Guatemalan court granted a divorce to the country's president and first lady, Álvaro Colom and Sandra Torres. The divorce will enable Ms Torres, who has already declared her candidacy for president, to circumvent a constitutional ban on close relatives of the incumbent from running to succeed him.

Disaster scenarios
» Japan raised the severity level at the Fukushima nuclear-power plant to seven, the highest on the accepted international scale. Only the Chernobyl accident 25 years ago ranked as high. The government said the new assessment reflected the accumulated radiation that has escaped the plant, not a sudden deterioration. Total radiation emissions have been a tenth of Chernobyl's so far, with no radiation-linked deaths.
» Following Myanmar's first parliamentary elections in 20 years and the release from house arrest of Aung San Suu Kyi late last year, the European Union eased long-held travel and financial restrictions on four ministers in the repressive regime.
» The government in Sri Lanka rejected out of hand a UN report on human-rights violations in the bloody ending of the long civil war in 2008-09. The army's crushing of the rebels at the time also killed, injured or displaced tens of thousands of Tamil civilians. See article
» The Pentagon said it would investigate what apparently is the first case of American fatalities from missiles fired by a drone in Afghanistan. Two men were killed in the incident.

Mayhem in Minsk
» A bomb exploded on the metro in Minsk, the capital of Belarus, killing 12 people and injuring more than 200. Two men were arrested on suspicion of planting the device. President Alyaksandr Lukashenka later said they had "confessed". See article
» Italy's lower house passed a bill that would in effect end a bribery case against Silvio Berlusconi. Separately, Mr Berlusconi said he planned to step down as prime minister in 2013.
» For the second time, Icelanders voted against a deal to reimburse the British and Dutch governments for €4 billion ($5.8 billion) in the bankruptcy of Landsbanki. When the bank's online arm collapsed in 2008, savers in Britain and the Netherlands had their deposits guaranteed by their governments. See article
» Poland marked the first anniversary of the plane crash in western Russia that killed its president and 95 others. The late president's brother, who is also leader of the opposition, boycotted the official commemoration, accusing the government of not standing up to Russian claims that the crash was solely the fault of the Polish crew. See article
» A ban on wearing the Islamic face-covering veil in public came into force in France. There were several arrests following protests, and one woman was fined €150 for sporting the garment. See article

MarketWatch | Personal Finance Daily: US Mortgage Rates Rise for The Fourth Consecutive Weekk

Personal Finance Daily
APRIL 14, 2011

Thursday's Personal Finance Stories

By MarketWatch

Don't miss these top stories:

There are several useful smartphone apps for when you're doing your taxes — including one that will actually let you file for return right from the phone. MarketWatch's Stacey Delo reports in a segment of the Digits show about apps that will provide tax tips, answer questions, track your refund and help you find the nearest H&R Block office. She also takes a close look at the SnapTax app from TurboTax, which can process the information from your W-2 form, help you fill out the 1040EZ form and even file your federal and state returns. There are pros and cons to these apps, bu t at least the process of filing your return may be getting a little easier. Now if you actually owe Uncle Sam some money, Andrea Coombes has a TaxWatch column today with tips on how to send in your payment, get an extension or set up an installment plan. Planning to send that check at the last possible moment? We don't blame you. But, as the column points out, many post offices no longer stay open until midnight on tax day — which is Monday, April 18, this year. Check out the U.S. Post Office website for info on where to drop off that return and make the postmark deadline.

Anne Stanley , Managing Editor, Personal Finance


Smartphone app lets you file your taxes on your phone

A new app allows you to file your taxes on your smartphone — including iPhones and phones running Google's Android system — but the convenience may cost you.
Watch the video: Smartphone app lets you file your taxes.

What to do if you owe the IRS money

April 18 is almost here, and for some Americans a big tax bill is coming due. There are a slew of ways to make that payment or, if you don't have the money right now, to work out a payment plan with the IRS.
Read more: What to do if you owe the IRS money.

Wealth is what you save, not what you spend

We all may not be millionaires but there are plenty of financial and life-planning secrets we can learn from the well-heeled.
Read more: Wealth is what you save, not what you spend.


Mortgage rates rise for fourth week: Freddie Mac

Mortgage rates crept up for a fourth week, but the 30-year fixed-rate mortgage held below 5%, according to Freddie Mac's weekly survey of conforming mortgage rates, released on Thursday.
Read more: Mortgage rates rise for fourth week.

Foreclosure filings up 7% in March: RealtyTrac

Foreclosure filings rose 7% in March, compared with February, according to RealtyTrac, as more lenders and servicers began working through a backlog of foreclosures that had been delayed as the industry dealt with paperwork issues.
Read more: Foreclosure filings up 7% in March.


U.S. jobless claims surge above 400,000

Initial claims for state benefits climbed by 27,000 to a seasonally adjusted 412,000 in the week ended April 9, the Labor Department says.
Read more: U.S. jobless claims surge.

U.S. wholesale prices rise 0.7% in March

Higher gasoline costs again spur the increase, but food costs fall for the first time in seven months.
Read more: U.S. wholesale prices rise.

Geithner says Congress will lift debt ceiling

Treasury secretary voices confidence that, partisan politicking aside, lawmakers won't risk crisis.
Read more: Geithner says Congress will lift debt ceiling.


Arcos Dorados shares soar after IPO

Newly public shares of Buenos Aires-based McDonald's franchisee Arcos Dorados soar in the NYSE trading debut.
Read more: Arcos Dorados shares soar after IPO.

Radical gold bugs keep confidence

Was that it for gold? Assorted gold bugs and others think not, reports Peter Brimelow.
Read more: Radical gold bugs remain confident.

Consumers may be too down on jobs

Companies are posting more job openings, but surveys show consumers are still very pessimistic about job growth, writes Kathleen Madigan.
Read more: Consumers may be too down on jobs.

Seven stocks to sell

While every investor knows it's important to make the right buys, making the right sells is equally important when it comes to protecting your nest egg, writes Jeff Reeves.
Read more: Seven stocks to sell

Statement of Arthur J. Murton, Director, FDIC Division of Insurance and Research on Oversight of the Financial Stability Oversight Council

Statement of Arthur J. Murton, Director, Division of Insurance and Research, Federal Deposit Insurance Corporation on Oversight of the Financial Stability Oversight Council before the Subcommittee on Oversight and Investigations, House Financial Services Committee; 2128 Rayburn House Office Building
April 14, 2011

Chairman Neugebauer, Ranking Member Capuano, and members of the Subcommittee, thank you for the opportunity to testify today on behalf of the Federal Deposit Insurance Corporation on issues related to the Financial Stability Oversight Council (FSOC).
The recent financial crisis exposed shortcomings in our regulatory framework for monitoring risk and supervising the financial system. Insufficient capital at many financial institutions, misaligned incentives in securitization markets and the rise of a largely unregulated shadow banking system permitted excess and instability to build up in the U.S. financial system. These conditions led directly to the liquidity crisis of September 2008 that froze our system of intercompany finance and contributed to the most severe economic downturn since the Great Depression.
At the same time, the pre-2010 regulatory framework focused regulators narrowly on individual institutions and markets within their jurisdiction. No one had a firm grasp of the big picture of overall risk in the financial system. This allowed supervisory gaps to grow and created an incentive for companies to engage in regulatory arbitrage to find the weakest oversight or, worse, move to parts of the system that were virtually unregulated. In addition to these regulatory gaps, the absence of a resolution process for systemically important non-bank financial companies left financial regulators with limited options for addressing problems facing such firms, creating a no-win dilemma for policy-makers: bail out these companies or expose the financial system to destabilizing liquidations through the normal bankruptcy process.
The landmark Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) creates a comprehensive new regulatory and resolution regime that is designed to avoid the severe economic consequences of economic instability. The Dodd-Frank Act gives regulators new tools to limit risk in individual financial institutions and transactions, enhances the supervision of large non-bank financial companies, and facilitates the orderly closing and liquidation of large banking organizations and non-bank financial companies in the event of failure.
The FSOC is one of the most important new tools created by the Dodd-Frank Act and is designed to fill the gaps in regulatory oversight. For the first time, one entity has the collective accountability for identifying and constraining risks to the financial system as a whole. My testimony will review the FDIC's participation on the FSOC, identify FSOC-related issues that are of particular importance to the FDIC, and discuss actions of the FSOC to date.
Background and FDIC's Participation in the FSOC
Among other things, the Dodd-Frank Act directs the FSOC to facilitate regulatory coordination and information sharing among its members regarding policy development, rulemaking, supervisory information, and reporting requirements. The FSOC is also responsible for determining whether a nonbank financial company should be supervised by the Board of Governors of the Federal Reserve System (Federal Reserve) and subject to prudential standards, and for designating financial market utilities (FMUs) and payment, clearing, or settlement activities that are, or are likely to become, systemically important.1 The term systemically important financial institution, or SIFI, is used to describe nonbank financial companies that the Council has determined should be supervised by the Federal Reserve and subject to prudential standards. The FSOC has the authority to recommend more stringent risk management standards for SIFIs and large, interconnected bank holding companies, and can ultimately determine to break up firms that pose a "grave threat" to financial stability. The Dodd-Frank Act also directs the FSOC to issue specialized reports and conduct various studies.
In order to complete its day-to-day work, the FSOC has established a committee structure. The Deputies Committee, which is comprised of senior officials from each member agency, coordinates and oversees staff assigned to FSOC-related issues. Among other things, the Deputies Committee is responsible for sharing information on proposed policies and rules among member agencies.
Since the FSOC's main responsibilities revolve around systemic risk monitoring and mitigation, the FSOC created a Systemic Risk Committee and two subcommittees on which the FDIC and other members serve – "Financial Institutions" and "Financial Markets." The Systemic Risk Committee is primarily responsible for making recommendations to the FSOC regarding significant financial market and regulatory developments and potential emerging threats to the financial stability of the U.S. The Systemic Risk Committee also will help the FSOC carry out its responsibilities to report on its progress to Congress. The Dodd-Frank Act requires that the FSOC produce annual financial stability reports and that each voting member submit a signed statement stating whether the member believes that the FSOC is taking all reasonable actions to mitigate systemic risk.
The FSOC also has five standing functional committees, with each committee focusing on one of the following key issues: 1) designation of nonbank financial companies for supervision by the Federal Reserve; 2) designation of FMUs as systemically important; 3) recommendation to the Federal Reserve of heightened prudential standards applicable to SIFIs and large, interconnected bank holding companies; 4) orderly liquidation authority and resolution plans; and 5) data. There are also ad hoc groups for special issues and reports, such as a group currently working on the Volcker Rule, which under the Dodd-Frank Act prohibits proprietary trading and acquisition of an interest in hedge or private equity funds by insured depository institutions.
The FDIC has representatives on these five standing functional committees. In addition to participating on FSOC committees, the FDIC has a number of internal work streams, which focus on specific risk issues, policies, studies, and regulations. A particular area of interest for the FDIC – and a source of a significant number of the FDIC's Dodd-Frank Act-related rulemakings – stems from the Act's mandate to end "Too Big to Fail." This includes our Orderly Liquidation Authority under Title II of the Act, our joint rulemaking with the Federal Reserve on requirements for resolution plans (or "living wills") that will apply to SIFIs and bank holding companies with total consolidated assets of $50 billion or more, and the development of criteria for determining which firms will be designated as SIFIs by the FSOC.
SIFI Designation
An important responsibility of the FSOC is to develop criteria for identifying nonbank financial companies that will be subject to enhanced Federal Reserve supervision and therefore, subject to the resolution plan requirements. To protect the U.S. financial system, it is essential that SIFIs are identified promptly and receive the proper supervision so we do not find ourselves with a troubled firm that is placed into Title II liquidation without having a resolution plan in place.
The Dodd-Frank Act specifies a number of factors that can be considered when designating a nonbank financial company for enhanced supervision by the Federal Reserve, including: leverage; off-balance-sheet exposures; and the nature, scope, size, scale, concentration, interconnectedness and mix of activities. The FSOC will develop a combination of qualitative and quantitative measures of potential risks to U.S. financial stability posed by an individual nonbank institution. Once these measures are agreed upon, the FSOC may need to request data or information that is not currently collected or otherwise available in public filings.
Recognizing the need for accurate, clear, and high quality information, Congress granted the FSOC the authority to gather and review financial data and reports from nonbank financial companies and bank holding companies, and if appropriate, request that the Federal Reserve conduct an exam of the company for purposes of making a systemic designation. By collecting information in advance of a designation, the FSOC can be much more judicious in determining which firms it designates as SIFIs. This will minimize both the threat of an unexpected systemic failure and the number of firms that will be subject to additional regulatory requirements under Title I of the Act.
Last October, the FSOC issued an Advance Notice of Proposed Rulemaking regarding the criteria that should inform the FSOC's designation of nonbank financial companies. The FSOC received approximately 50 comments from industry trade associations, individual firms, and individuals. On January 26, 2011, the FSOC issued a Notice of Proposed Rulemaking describing the criteria that will inform the FSOC's designation of nonbank financial companies and the processes and procedures established under the Dodd-Frank Act.
The comment period closed on February 25, 2011, and the FSOC received 43 comments. Many commenters requested that specific metrics be made available for public comment and included in the text of the rule.
The FSOC is committed to adopting a final rule as expeditiously as possible, with the first designations to occur shortly thereafter. The FDIC believes the final rule should be more descriptive as to the metrics that the Council will be considering.
The FDIC believes that the FSOC members are committed to the success of the Council, and we have been impressed with the quality of staff work in preparation for the meetings as well as the rigor and candor of the discussions. We also believe that the FSOC has provided a useful means for agencies to jointly write rules required by the Dodd-Frank Act and to seek input from other agencies on independent rules. The FDIC strongly supports the FSOC's collective approach to identifying and responding to risks.
The FSOC is an important new tool for financial regulators to close supervisory gaps and to maintain financial stability by identifying and dealing with risks before they pose a serious threat to the financial system. The FDIC is actively involved in many aspects of the FSOC, but is particularly focused with ending the chaos and costs associated with "Too Big to Fail." Working within the FSOC framework, the FDIC intends to expeditiously complete rulemakings and exercise its new authorities related to orderly liquidation authority and resolution plans so market participants will know the rules, and so that as stewards of the financial system, we will prevent a repeat of the recent financial crisis.
Thank you again for the opportunity to testify and I would be pleased to answer any questions.

Financial & Forex Info | Reuters Deals Today

Glencore is looking to raise up to $12.1 billion for its initial public offering in a duel listing that will boost firepower for deals at the height of the resource boom. The long-awaited details of the offer, set to be the largest ever in London, were outlined in an intention-to-float that confirmed an earlier Reuters story. However, the company did not name a new non-executive chairman, a requirement for its listing.

NYSE Euronext and Deutsche Boerse are looking at several options to win support for their $10.2 billion deal, including paying special dividends to shareholders, according to sources briefed on the matter. The idea of paying the special dividends is to win shareholders support over an unsolicited higher offer from Nasdaq OMX and IntercontinentalExchange Inc (ICE). While NYSE Euronext and Deutsche Boerse currently pay dividends, Nasdaq and ICE do not.

BP and Rosneft agreed to extend the deadline for their swap agreement by one month as the British oil producer tries to salvage the $7.8 billion deal. BP’s tie-up with Rosneft is already blocked by a court injunction secured by the company’s Russian partners in its TNK-BP venture.

Car-sharing service ZipCar is expected to go public later this week. In this interview, a reporter asked what ZipCar's IPO would mean for the burgeoning car-sharing industry.

Financial & Forex Info | Reuters - Before The Bell: Futures dip on China inflation worries; data eyed.


Futures dip on China inflation worries; data eyed
NEW YORK (Reuters) - Stock index futures fell on Thursday as investors awaited data to assess the impact of rising commodity prices amid growing concerns over Chinese inflation. | Full Article

Glencore seeks up to $12.1 billion in IPO, no chair yet
April 14, 2011 07:57 AM ET
HONG KONG/LONDON (Reuters) - Top commodity trader Glencore aims to raise up to $12.1 billion with a dual listing that will boost firepower for deals at the height of a resources boom and make paper fortunes for its publicity-shy partners. | Full Article
Regulators probe whether banks colluded in Libor: report
April 14, 2011 07:15 AM ET
(Reuters) - U.S. regulators are probing whether some major banks colluded to manipulate a global benchmark interest rate before and during the financial crisis, the Wall Street Journal reported, citing people familiar with the situation. | Full Article
Senate panel slams Goldman in scathing crisis report
April 13, 2011 08:49 PM ET
WASHINGTON (Reuters) - In the most damning official U.S. report yet produced on Wall Street's role in the financial crisis, a Senate panel accused powerhouse Goldman Sachs of misleading clients and manipulating markets, while also condemning greed, weak regulation and conflicts of interest throughout the financial system. | Full Article
Google first-quarter report to kick off era under new CEO
April 14, 2011 01:41 AM ET
SAN FRANCISCO (Reuters) - Management changes, spending plans and regulatory risks will be in the spotlight when Google Inc reports its first-quarter financial results after the market closes on Thursday. | Full Article