3 on Gov. & the Economy

White House to Seek Power to Seize
Non-Bank Financial Companies
http://www.truthout.org/032409K
Binyamin Appelbaum and David Cho, The Washington Post:
"The Obama administration plans to send legislation to
Congress this week granting the government new powers
to seize troubled non-bank financial companies whose
collapse would threaten the broader economy, according
to three sources familiar with the matter. Treasury
Secretary Timothy F. Geithner is expected to argue for
the new powers at a hearing on Capitol Hill tomorrow
about the furor over bonuses paid to executives at
American International Group, which the government has
propped up with $170 billion in federal aid.
Administration officials have said that the proposed
authority would have allowed them to seize AIG last
fall and wind down its operations at less cost to
taxpayers."


US Housing Rescue Threatened by Banks
http://www.truthout.org/032409L
Patrick Rucker and David Lawder, Reuters:
"The US Treasury Department's effort to help 5 million
homeowners win reworked mortgages, part of a plan to
stabilize housing, could fall flat if Wall Street does
not relax its interest in the properties. While the
initiative empowers Fannie Mae and Freddie Mac to
refinance borrowers whose homes have lost value
in recent years, big banks own a small stake in many
of those loans and could effectively block the plan."


Geithner's Last Shot: If This Doesn't Work,
Is Nationalization Next?
http://www.truthout.org/032409N
Kevin G. Hall, McClatchy Newspapers:
"The Obama administration's long-awaited plan to help
banks dispose of so-called 'toxic assets' so they can
resume lending was greeted Monday with a huge rally on
Wall Street, but its longer-term success remains far
from certain. The Dow Jones Industrial Average closed up
497.48 points, or 6.8 percent, at 7775.86. The S&P 500
finished up 54.38 points, or 7.1 percent, at 822.92.
The Nasdaq rallied 98.50 points, or 6.8 percent, to
close at 1555.77. As the past 14 months of recession have
made painfully clear, however, a one-day stock
rally doesn't mean the worst is over. Treasury Secretary
Timothy Geithner's plan remains fraught with uncertainty
over whether it'll work."