EU-DIGEST

Feb 12, 2010

Financial regulation in America: Another fine mess - with Republicans blocking every proposal to protect consumers

With health-care reform stalled, the White House would dearly love to see Congress approve an overhaul of financial regulation. But as Washington, DC, struggles with snowstorms, a chill has descended on relations between Democrats and Republicans on the Senate Banking Committee, which has the job of shepherding through a mega-bill on financial reform, a version of which passed the House of Representatives in December. On February 5th Christopher Dodd (pictured left), the committee’s Democratic chairman, said he was giving up on two-month-old bilateral talks with its top Republican, Richard Shelby (pictured right), after reaching an “impasse”. Mr Dodd apparently called it a day after making several concessions but receiving little in return.

The window for reaching a cross-party consensus is closing fast. As winter turns to spring, senators will begin to focus more on the November mid-term elections than on outstanding legislation. Mr Dodd may have little more than a month to get a deal before attention turns elsewhere. There is a “real chance” of the bill still being stuck in the Senate this time next year, thinks Tom Pax at Clifford Chance, a law firm. If it is, Mr Dodd’s successor on the committee—he retires this year—may try to break it into more digestible pieces.

The main sticking-point is a new consumer-protection agency, which would write rules for products such as credit cards and mortgages. A key part of Barack Obama’s reform agenda (and of the House bill), this is opposed by banks and many Republicans.

For more go to: Financial regulation in America: Another fine mess | The Economist

Labels: Financial Regulation, Republicans, US Consumer, US Economy

4:53 PM | Permalink | | links to this post

Nov 26, 2009

US Economy- U.S. retailers expect weak holiday sales again - by Kevin G.Hall

For the complete report from the KansasCity.com click on this link

Most economists agree the nation's deep recession is over, but that isn't bringing much cheer to retailers. For the second consecutive holiday season, they're bracing for declining sales. "We're expecting (holiday) sales to be down 1 percent this year, which, believe it or not, represents a stabilizing of the (retail) industry," said Scott Krugman, a spokesman for the National Retail Federation, the trade group for major retail chains. Many retailers suffered through a year-over-year drop in sales of at least 3 percent last holiday season, so this year isn't expected to be as bad. That's a sign of how bad the U.S. economy has been: Less bad now passes as good news for retailers.

Labels: EU, US Consumer

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Oct 29, 2009

Daily Reckoning: US Consumer Confidence Falls Again, the Shoppers Remain Scared

For the complete report from the Daily Reckoning click on this link

The Conference Board’s Consumer Confidence Index fell again in October, the second month in a row, as shoppers still see plenty of reasons to cut back. The gloomy outlook hasn’t changed much since September and here is a pair of reasons why… The Present Situation Index – The Conference Board’s Present Situation Index measures how consumers feel about business and labor conditions. This month it has dropped to 20.7, its worst reading in 26 years. It shows that consumers are not hopeful about future business earnings or this holiday shopping season. Less Buying Power – In addition to unemployment strains, a lack of confidence in the economy is also causing buyers to put off major purchases like cars, homes, and appliances over the next six months.

Labels: US Consumer