Economic Recovery Measures
This weekend, there have been a number of editorials about fiscal and budget policy. Among them:
This week, the FDIC issued a Notice of Proposed Rulemaking (NPR) to require insured banks to prepay premiums for Q4 2009 all the way through 2012. The FDIC estimates that this change would raise around $45 billion.
Each FDIC insured institution must pay the FDIC a risk-adjusted quarterly premium for the insurance. Rates vary from 12 cents per $100 in deposits for the safest banks to 45 cents for those considered to be risky.
It would be easy to dismiss the recent G-20 Summit in Pittsburgh as just more political babble, more empty business as usual just among more countries – but you would be wrong. The Summit’s agenda was pragmatic and ambitious, perhaps one of the most ambitious in awhile. And, contrary to what some pundits cautioned, the array of possible deliverables in the next year is mind-numbing, from fiscal policy to financial sector reform to energy policy.
On Friday evening, the FDIC reported that it has taken over an additional bank (Georgian Bank) for a cost to the FDIC of around $892 million. This brings the total number of failed banks since the beginning of 2008 to 111. Total deposits of all failed banks now equal $87.08 billion for 2009 and over $321 billion since the beginning of 2008, all at an estimated cost to the FDIC of just under $48 billion.
As the G-20 Summit gets underway in Pittsburgh, what should we hope to hear from the G-20 leaders?
Following its two day meeting yesterday and today, the Fed’s monetary policy setting body (the Federal Open Market Committee or FOMC) released its concluding statement this afternoon.
Recently, Senate Majority Leader Harry Reid announced his support for the extension of the First-time Homebuyer Tax Credit by signing on as a cosponsor to a new bill that would extend the existing credit for 6 more months. “[Yesterday] we learned that new home sales have increased in Las Vegas, and that’s good news,” he explained.