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Last week we were spot on in our assessment that although SCOTUS nominee Sotomayor’s appearances on Capitol Hill, and Pres. Obama’s trip abroad, as well as Treasury Secy. Geithner’s visit to China would dominate the headlines that there would also still be drips and drabs peaking through the din on who will be the watchdog agencies to oversee the struggling financial industry and news on paying back TARP. 

MBA readers HERE’S WHY YOU CARE:  We point out that the Federal Reserve has already said it expects to announce the first round of banks able to payback the federal government and escape TARP this week (hence the Washington Post’s Binyamin Appelbaum’s and David Cho’s solid reporting today).  Additionally, we still think that although Capitol Hill is buzzing that Treasury will unveil the financial industry regulatory reform plan next week, that you’ll still get more reported details by Sunday.  The New York Times’ Louise Story and Eric Dash report today that Secy. Geithner is testifying next week (6/18) and that just might be when he pulls back the curtain (we think next week is right).  However, with Secy. Geithner having a couple events on Tuesday (6/9) as well as Elizabeth Warren of the TARP focused Congressional Oversight Panel – we think you’ll get two headlines this week:  1) More detailed reporting on regulatory reform and 2) a closer look at the health of the TARP banks – even though some will rightly brag they are paying the government back.

MBA wannabes HERE’S WHY YOU CARE:  When we point out above that the two headlines to look for are regulatory reform and the health of the TARP banks, resist the cringe factor when reading or hearing “regulatory reform.”  Instead, every time you hear “regulatory reform” think policing the financial industry regarding things like the oft-reported-on credit default swaps or bundled mortgages on the balance books.  It really is at the heart of how the next financial challenge will be created or avoid.  As for the health of the TARP banks, look for pieces examining what paying back the federal government now means long term for the banks and the economy.

 

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

MONDAY 6/8

Deadline today:  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.  [Update:  Federal Reserve has announced 10 banks have submitted their capital buffer plans.  The implementation deadline is 11/9/09 for the plans.]

 

TUESDAY 6/9

Geithner Hearing:  Senate Appropriations Cmte’s Financial Services and General Govt. Subcmte. on 2010 appropriations.   Witness:  Treasury Secy. Geithner.  [Update on 6/9: Treasury announces 10 banks to payback $68 billion of TARP funds].

Geithner News Conference (at Treasury):  Previews upcoming G-8 finance ministers meeting in Leece, Italy.

Gates:  Senate Appropriations Cmte’s Defense Subcmte. on 2010 appropriations.  Witness:  Defense Secy. Gates.

Hearing: Joint Economic Cmte. on June TARP report.  Witness: Congressional Oversight Panel Chwmn. Elizabeth Warren.  [Update on 6/9:  Warren additionally tells CNBC (as reported here by Wall Street Journal's blog Deal Journal) that she'd like to see the Stress Tests given again]. 

Hearing:  House Financial Services Cmte’s Capital Markets, Insurance and Govt. Sponsored Enterprises Subcmte. on regulating over-the-counter derivatives.

News Conference:  House Financial Service Cmte’s member Rep. Jeb Hensarling (R-TX) on his proposed new TARP legislation.

Brookings Institution:  Forum on “Implementing Comparative Effectiveness Research: Priorities, Methods and Impact.”  Speakers:  Senate Finance Cmte. Chmn. Max Baucus (D-MT) and OMB Dir. Peter  Orszag.

 

WEDNESDAY 6/10

Economic Reports:  Federal Reserve’s Beige Book.; Mortgage Bankers Assoc. weekly data on mortgage applications.

Executive Compensation:  [Update 6/10 - Treasury's two announcements:  1) For TARP recipients a Special Master and new executive pay rules; and 2) for publicly traded companies a set of executive pay "principles" that Treasury has linked to risk taking.  NOTE:  Each link takes you to the applicable Treasury press release which contains links to the supporting guidance documents].

Hearing:  Senate Banking, Housing and Urban Affairs Cmte. on the federal auto task force and restructuring the auto industry.

Hearing:  House Small Business Cmte. on the Small Business Administration’s role in helping small businesses with capital.

 

THURSDAY 6/11

Economic Report:  Retail Sales (for May); Initial Unemployment Claims (for 6/6).

Hearing:  House Oversight and Government Reform Cmte. and its Domestic Policy Subcmte. on “Bank of America and Merrill Lynch: How Did a Private Deal Turn Into a Federal Bailout.”  Witness “Invitee”:  Bank of America CEO Kenneth Lewis

Hearing:  House Financial Services Cmte. on compensation, risk taking and the financial collapse. Witness:  Treasury Secy. Counselor Gene Sperling.

 

FRIDAY 6/12

Hearing:  House Energy and Commerce Cmte’s Oversight and Investigations Subcmte. on GM and Chrysler dealership closures.  [Update on 6/9: Witnesses:  General Motors CEO Fritz Henderson, Chrysler Pres. James Press, and Natl. Automobile Dealers Assoc. Chmn. John McEleney].

 

SATURDAY 6/13

Geithner:  Press conference post G-8 Finance Ministers meeting in Lecce, Italy. [Updated 6/11].

 

LOOK AHEAD:

Next week:  New regulations for the financial industry?

June 23-24: Two day Federal Open Market Committee (FOMC) meeting.