According to U.S. Treasury Secretary Timothy Geithner, the leaders of the G-20 nations now assembled in Pittsburgh are close to agreement on a set of international limits to be imposed on bonus compensation for bank executives. According to Geithner, limits on executive compensation for bankers allegedly responsible for the global financial meltdown will be in place by year’s end, and will be enforced by the Financial Stability Board, an international group of central bankers and regulators.
As world leaders gather today in Pittsburgh, Pennsylvania, for the latest G-20 meeting, expectations are running high among global elites that this, the latest international economic summit in a time of almost unprecedented world economic turmoil, will be the occasion when the world’s leading economic powers will finally achieve consensus on a range of issues that have been on the table for almost 70 years.
The U.S. central bank has once again refused to open itself up to even the slightest amount of transparency. According to Bloomberg news, the Federal Reserve (Fed) Board of Governors is essentially snubbing a request by the Treasury Department for a public review of its structure and governance, even though the review was supposed to be led by the Fed itself.
Ben Bernanke, Federal Reserve Chairman, expressed confidence that the worst recession since the 1930s is almost over. In a speech before a Brookings Institution audience Tuesday morning Bernanke made the guardedly optimistic assessment that the economy likely had begun to grow again. He added that growth would be too slow to prevent unemployment from continuing to rise.
Item: The National Public Radio news blog, “The Two-Way,” reported on August 7: “The relatively good news that the unemployment rate dropped slightly to 9.4 percent in July had President Barack Obama claiming credit for his administration for stabilizing the economy.” The president was quoted saying, in part: “Today, we’re pointed in the right direction…. We’ve rescued our economy from catastrophe.”
At a town hall meeting held in his Massachusetts district, House Financial Services Committee Chairman Barney Frank provided a surprising response to a constituent’s inquiry about H.R. 1207, Rep. Ron Paul's bill calling for an audit of the Federal Reserve.
News stories on August 19 reported that Neil Barofsky, Special Inspector General (SIG) of the U.S. treasury Department’s $700 billion Troubled Asset Relief Program (TARP), had agreed to audit the $301 billion of federal asset guarantees extended to Citigroup Inc. since last November.
The Obama administration is expected to release a report soon estimating that the 10-year budget deficit for the United States will be roughly $9 trillion, up approximately $2 trillion from the previous projection of $7.108 trillion, Reuters reported on August 21.
Item: President Barack Obama, reported the Bloomberg news agency for July 11, “said his $787 billion stimulus bill ‘has worked as intended’ as he pushed back against Republican criticism that his recovery program has failed to rescue the economy.”