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Last week we were correct to predict that the week would start off and end with Supreme Court nominee Sonia Sotomayor in the media spotlight.  We were also correct to say that foreign policy would break through the headlines with Palestinian National Authority Pres. Mahmoud Abbas visiting the White House and that although that would help push the economy off the front page, Treasury Secretary Geithner’s trip to Beijing and the drips of details coming out as to how the federal government wants to overhaul financial regulations would still garner some coverage.

So why with SCOTUS nominee Sotomayor heading to Capitol Hill to meet with Senate Judiciary Cmte. members, and Pres. Obama heading to the Middle East and then to Europe to make foreign policy headlines with each passport punch (and Fmr. VP Cheney giving his own speeches), and with Treasury Secy. Geithner in China (all of which is noted by date below) would we dare say this is Superbowl time for the financial industry?

MBA readers here’s WHY YOU CARE:  We know you’ve been following the stories on how the financial industry will be regulated in the future.  Last week the Washington Post’s Binyamin Appelbaum and Zachary Goldfarb had a terrific piece on the power play behind the scenes and what’s at stake.  Today, the New York Times’ Stephen Labaton has another solid layout.  If you look at those pieces, and then at the calendar below you will see some important items stick out, like executive compensation events, and appropriations hearings for the SEC and Commodity Futures Trading Commission (both of which stand to gain and lose power depending on what they end up regulating in the final analysis).  We’re just saying if you are putting together a plan for a new regulator, or to shuffle the deckchairs, then funding of those entities is a pretty big clue.  Additionally, today the Federal Reserve announced the rules for banks to pay back TARP funds, and revealed that the first round of banks allowed to pay back TARP funds will be showcased next week (which by no coincidence starts off on Monday, 6/8, with a deadline for TARP recipients in need of more capital to present their plan to raise some cash to the federal government).  With so much at stake, and so much going on, it does feel like the Superbowl – even if these are not front page stories each day.  So when’s the big game?  Drumbeat says new regulation game plan seems like it may come together this month.  Which makes those stories that get leaked this week and next all the more important.

MBA wannabes here’s WHY YOU CARE:  The piece you need to read is last week’s Washington Post story and today’s New York Times story – both highlighted above.  You care because this is the moment where Congress and White House really have a chance to put their stamp on preventing the next financial crisis (or run the risk of creating another).  Developing new regulations (or a regulator) is three dimensional chess warfare, which you’ll see in the two stories we’ve pointed to and in the weeks to come.  When you read about the regulation struggles remember that a) each federal agency/entity doesn’t want to give up their turf, b) many financial entities also have their preferred regulator, and c) no congressional committee ever wants to give up jurisdiction, ever.  And we mean, ever, as in never.  Why?  Staff, money, power, etc.  So don’t read “regulation” and get bored, there’s a power play here and the end result, whether rules or who plays watchdog, will impact the economy for years going forward.

Here’s your Weekly Crib Sheet… We do caution that you check back for updates on scheduling.

MONDAY 6/1
Economic Reports:  Construction Spending (for April); Personal Income (for April).

Pres. Obama:  Delivers remarks on auto industry (GM declares bankruptcy).

Treasury Secy. Geithner:  Speech in Beijing, China.

Fmr. VP Cheney:  Speaks at the National Press Club (event is for the Gerald Ford Foundation’s journalism award).

Senate: Reconvenes.

 

TUESDAY 6/2
Economic Reports:  Car/Truck Sales (for May), Pending Home Sales (for April).

Pres. Obama:  Departs for Riyadh, Saudi Arabia.

Treasury Secy. Geithner:  In China.

National Press Club:  Healthcare debate between Fmr. Senate Majority Leader Tom Daschle and former Health and Human Services Secy. Michael Leavitt.

Senate Hearing:  Senate Appropriations Cmte’s Financial Services and General Govt. Subcmte. on fiscal 2010 appropriations:  Witnesses:  SEC Chrwmn. Mary Schapiro and Commodity Futures Trading Commission Gary Gensler.

Sotomayor:  Senate Judiciary Chmn. Patrick Leahy (D-VT) discusses SCOTUS nominee Sonia Sotomayor after meeting her.

U.S. Chamber of Commerce:  Hosts NASDAQ CEO Robert Greifeld on the recession’s impact on global trading.

House: Reconvenes.

Executive Compensation Speech:  Financial Services Cmte’s Capital Markets, Insurance and Govt. Sponsored Enterprises Subcmte. Chmn., Rep. Paul Kajorski (D-PA) speaks to the American Constitution Society on “Can Exec. Compensation Be Reclaimed by ‘Clawback’ Lawsuits?”

U.S. Chamber of Commerce:  Hosts NASDAQ CEO Robert Greifeld on the recession’s impact on global trading.

 

WEDNESDAY 6/3
Economic Report:  Mortgage Bankers Assoc’s Weekly Mortgage Application data.

President Obama:  Meets with King Abdullah in Saudi Arabia.

House Hearing:  House Budget Cmte. on “Challenges Facing the Economy: The View of the Federal Reserve.”  Witness:  Federal Reserve Board Chmn. Ben Bernanke.

House Hearing:  House Financial Services Cmte’s Capital Markets, Insurance and Govt. Sponsored Enterprises Subcmte. on the future of Fannie Mae and Freddie Mac.  Witness list includes:  Federal Housing Finance Agency Dir. James Lockhart.

Senate Hearing:  Senate Commerce, Science and Transportation Cmte. on “GM And Chrysler Dealership Closures: Protecting Dealers And Consumers.”  Witnesses:  Chrysler Pres. James Press and GM CEO Fritz Henderson.

 

THURSDAY 6/4
Economic Report:  Initial Unemployment Claims (for 5/30).

Pres. Obama:  Delivers speech in Cairo, Egypt.

Fed Chmn. Bernanke:  Gives opening remarks at the “Journal on Money, Credit, and Banking Conference on Financial Markets and Monetary Policy, Federal Reserve Board, Washington, D.C.”

Senate Hearing:  Senate Appropriations Cmte’s  Commerce, Justice and Science, and Related Agencies Subcmte. on fiscal 2010 appropriations.  Witness:  FBI Dir. Robert Mueller.

Senate Hearing:  Senate Banking, Housing and Urban Affairs Cmte.’s confirmation hearing for Herbert Allison’s nomination as Asst. Treasury Secy. for financial stability.

Senate Hearing:  Senate Agriculture, Nutrition and Forestry Cmte. on derivative market regulation.

House Hearing:  House Appropriations Cmte’s Transportation, Housing and Urban Development, and Related Agencies Subcmte. on fiscal 2010 appropriations.  Witness:  Transportation Secy. Ray LaHood.

House Hearing:  House Financial Services Cmte’s Housing and Community Opportunity Subcmte. on Section 8 Housing Voucher Program (focusing on draft legislation).

 

FRIDAY 6/5
Economic Reports:  Consumer Credit (measuring consumer debt for April); Hourly Earnings (for May), Unemployment Rate (for May).

Pres. Obama:  Visits concentration camp in Germany.

Senate Hearing:  Senate Finance Cmte. on Miriam Sapiro’s nomination as Deputy U.S. Trade Representative.

 

SATURDAY 6/6
Pres. Obama:  Takes part in events commemorating 65th anniversary of D-Day in Normandy, France.

 

SUNDAY 6/7
Pres. Obama:  Leaves Paris for Washington, D.C.

 

LOOK AHEAD

Monday (6/8):  Deadline for banks (technically bank holding companies) that were put through those much reported on “stress tests” (known as the Supervisory Capital Assessment Program in legal/banking circles) which were deemed in need of more money (referred to as a capital buffer) to come up with a plan raise money.  On Monday (6/1) the Federal Reserve announced that next week it will release the initial round of banks allowed to payback the federal government and get out of TARP (Federal Reserve release).