November 3

“What you need to know to navigate today’s economic debate.”

Banks Find Consumer Protection Too Big to Fail With Congress (BLM)
Banks and their trade associations are lobbying furiously to kill Obama’s plan to create the new financial protection agency, which was approved by the House Financial Services Committee in late October

Stiglitz Says U.S. Is Paying for Failure to Nationalize Banks (BLM)
Nobel Prize-winning economist Joseph Stiglitz said the world’s biggest economy is suffering because of the U.S. government’s failure to nationalize banks during the financial crisis.

British Break Up Parts of Big Bailed-Out Banks (WP)
Downsizing of some of the nation’s largest banks comes as U.S. politicians debate whether American banks should also be required to shrink.

Fed Gives Wall Street Deadline on Pay Plan (WP)
Wall Street’s top bankers were given a Feb. 1 deadline to submit proposals for how they plan to improve their pay practices.

Pensions for Executives on Rise (WSJ)
Pensions for top executives rose an average of 19% in 2008, with more than 200 executives seeing pensions increase more than 50%.

States Are Pondering Fraud Suits Against Banks (NYT)
Unable to do much about runaway foreclosures, the states’ top lawyers are thinking of suing banks for fraudulently marketing mortgages.

Fed to Mull Recovery, Financial Stability at Policy Meeting (Reuters)
ederal Reserve officials meeting this week must weigh improving economic data against the risk, reinforced by a persistently weak job market, that a burgeoning recovery remains on shaky ground.

Bernanke Housing Gamble May Bring Pressure to Extend Fed Aid (BLM)
Bernanke is gambling that come March, he can stop the purchases of mortgage-backed securities that have propped up the U.S. housing market. Congress may have other ideas.

Credit Suisse Banker Defends ‘Dark Pools’ (DealBook)
Daniel Mathisson, a managing director at Credit Suisse, argues that dark pools are beneficial since they prevent abrupt price swings when large blocks of stock change hands.

A Free Credit Score Followed by a Monthly Bill (NYT)
The government is trying to counter what it says are ads that trick consumers into paying for credit monitoring.

Crisis Culprits Helping Lead Recovery (WP)
Two sectors that led the collapse of the economy over the past two years — manufacturing and housing — are now emerging as among the biggest drivers of growth.

Help Small Businesses Hire Again (NYT)
In order to ensure that the economic recovery becomes a lasting expansion, the government must enact policy to deal with employment, particularly for small businesses.