November 13

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

New Rules Would Restrict Overdraft Fees on Debit Cards (NYT)
The Federal Reserve announced new rules on Thursday that would sharply restrict banks and others that issue debit cards from charging overdraft fees without the express permission of the cardholder.

TARP: One Year Later (NW)
Hank Paulson’s plan was supposed to save the economy. But did it end up merely enriching bankers?

Banks to Prepay FDIC for Failures (WP)
Agency will collect $45B from the banking industry to cover the rising cost of bank failures, an unprecedented assessment that reflects projections that the current round of failures will not peak until next year.

US Federal Reserve: An Eclectic Aviary (FT)
As the Fed seeks to guide America’s recovery, the policy hawks and doves must make nuanced judgments – and the two species are not as distinct as some think.

When Banks Use Capital Made of Sand (Reuters)
Banks need genuine capital available to absorb losses, not giant lumps of deferred tax assets, writes columnist Rolfe Winkler.

SEC Expects to Proceed with Bear Stearns Case (Reuters)
U.S. securities regulators intend to proceed with their civil case against two former Bear Stearns fund managers who were acquitted of related criminal charges earlier this week.

Robin Hood Says ‘Hell Yeah’ to Recovery Led by Goldman Bonuses (BLM)
David Saltzman, executive director of the Robin Hood Foundation, may be one of the few people who refuses to demonize a Wall Street recovering from record losses with earnings that may include record bonuses.

No More ‘Too Big to Fail’ (WP)
The chairman of J.P. Morgan Chase, Jamie Dimon , says the term must be excised from our vocabulary.

Free to Lose (NYT)
Paul Krugman writes, with long-term unemployment at its highest levels since the 1930s and on the rise, the U.S. should consider policies that address job growth directly.

Obama Calls Summit on Job Creation (WP)
Forum is an attempt to signal president’s concern about the growing ranks of the unemployed and to build consensus on future action to stoke the economy.

Housing Agency’s Cash Reserves Down Sharply (NYT)
The FHA released an audit that spelled out the rapid deterioration of its finances, but is reluctant to clamp down so much that it snuffs out the tentative recovery in housing.

Where Credit Isn’t Due (NYT)
The unintended consequences of proposals like credit card rate freezes and tax credits for home buyers may wind up creating even worse problems.

Geithner Lauds Stance on Exchange Rates (FT)
Confrontation avoided with China over ending peg to dollar.

Euro-Zone Economy Returns to Growth (WSJ)
The economy for the 16 countries that use the euro grew for the first time in a year and a half, but growth was slower than expected.