05.13.2010
|
Updates
European Bailouts:
On Wednesday, May 5, 2010, Congressman Mike Pence (R-IN), Chairman of the House Republican Conference, and Conference Vice-Chair Cathy McMorris Rodgers (R-WA) sent a letter to Vice President Joe Biden, opposing an International Monetary Fund (IMF) bailout for Spain. This letter comes amid speculation of forthcoming requests for bailouts, similar to that for Greece, in which the IMF agreed to contribute €30 billion.
On Sunday, May 9, 2010, the European Union's Economic and Financial Affairs Council (ECOFIN Council) adopted a number of measures "to preserve financial stability in Europe." The measures agreed to in Brussels provide for the establishment of a €500 billion "European Financial Stabilisation mechanism" including the availability of loan funds from the European Union's budget with assistance from the IMF.
On Monday, May 10, 2010, the European Central Bank announced that it will "conduct interventions in the euro area public and private debt securities markets … to ensure depth and liquidity in those market segments which are dysfunctional."
Read the European Central Bank's press release.
Regulatory Reform:
On Thursday, May 6, 2010, Federal Reserve Chairman Ben Bernanke and former Federal Reserve Chairman Paul Volcker sent letters to Senator Christopher Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, opposing proposed amendments to the Senate financial regulatory reform bill permitting the Government Accountability Office to audit the Federal Reserve. Both Bernanke and Volcker stressed that such an audit would threaten monetary policy independence.
Read the letter from Chairman Bernanke.
Read the letter from former Chairman Volcker.
U.S. Exchange Rules:
On Monday, May 10, 2010, the SEC issued a press release indicating that the stock exchanges would be devising a plan to stop or slow trading in stocks that are falling rapidly. SEC Chair Mary Schapiro met with the heads of six U.S. exchanges on Monday in order to structure such a plan.
