November 2

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

US Senate to Introduce Draft Financial Bill (FT)
Proposed legislation at odds with Obama’s plan.

New Tack on Fund to Dissolve Failed Firms (WP)
Rep. Barney Frank, chairman of the House Financial Services Committee, indicated his willingness to change gears and support a provision that would require financial companies to pay ahead of time into a fund that the government could use to wind down large, troubled financial firms.

Summers to Lead High-Level Meeting on Economy, Job Creation (Reuters)
White House economic adviser Lawrence Summers will lead a high-level meeting on Monday to discuss the state of the economy, job creation and ways to achieve sustainable growth.

Frank Says Overdraft Protection Should Be ‘Opt-In’ (WP)
Bank overdraft fees as high as $39 on debit card transactions aren’t “favors” for consumers if they haven’t asked for them, House Financial Services Committee Chairman Barney Frank said.

Did the Stimulus Work? (RoomDebate)
Top economist weigh-in: How sustainable is this growth? Is there less need of government intervention going forward?

The Court and Your Savings (NYT)
Congress wisely put limits on the ability of mutual funds to overcharge investors. The Supreme Court needs to give the law the power that Congress intended.

Congress Misses the Point of Reform (FT)
When it comes to improving financial regulation, the crux of the matter, there has been a lot of talk – usually about the wrong things – and next to no action, writes Clive Crook.

Bank Failures Buffeting FDIC Efforts to Bolster Insurance Fund (BLM)
The FDIC replenishing funds after the worst financial crisis since the Great Depression, faces additional strains on its resources after spending $2.5 billion to shut nine banks last week.

Too Little of a Good Thing (NYT)
The Obama stimulus plan is helping, but it not nearly enough. Unless something changes, high unemployment will continue for years to come.

CIT Files for Bankruptcy (WSJ)
CIT filed for bankruptcy Sunday afternoon, in a high-stakes restructuring intended to keep the doors open at one of the U.S.’s largest small-business lenders.

U.S. Turns Screws on GMAC (WSJ)
Since getting rescued by the government, GMAC has wrangled with the FDIC over its turnaround plans, and is locked in debate with regulators about its capital levels.

Small Banks Move In as Giants Falter (NYT)
Small independent banks are joining together with a simple message: You can trust us — we didn’t cause the crisis and didn’t need bailouts.