Obama speech to spell out his demands for financial regulations (+ analysis); Israel snubs US and keeps building in East Jerusalem; Nigeria removed from terror list; tensions flare between government and military in South Korea; and more
Top of the Agenda: Obama to Push for Financial Reform
US President Barack Obama will deliver (NYT) a speech calling for Congress to move forward with financial reform, a signal to other global leaders as they consider financial reforms abroad. With the Senate embroiled in debate over which measures to include in the bill, Obama, speaking in New York City, will emphasize the elements he insists should be part of the package. Democratic and Republican lawmakers have been wrangling over how tough the measures should be at a time when the global economic recovery is still young. The Senate Agricultural Committee moved a bill forward that imposes tougher rules on derivatives Wednesday.
Obama will state that he won't accept compromises (WSJ) to weaken the bill, especially on derivatives, the complex financial products that played a role in the economic meltdown.
Analysis:
In the Financial Times, the heads of six major Canadian banks call for speeding up the pace of financial reform and focusing on the main problems stemming from the financial crisis: excessive leverage, a common capital standard, and better risk and liquidity management.
In the Washington Post, CFR's Sebastian Mallaby says financial reform should "harness the energies of private traders, since their roulette-like incentives encourage them to call bubbles early."
Background:
This CFR Backgrounder examines the debate over financial reform and what level of government involvement will help the economy long term.
PACIFIC RIM: South Korea Ship Probe Raises Tensions
South Korea's ship probe has exposed tensions (WSJ) between the military and South Korean President Lee Myung-bak over the threat North Korea poses to the South.
China: China finalized (MarketWatch) an anti-dumping tariff on certain types of nylon imports from four of its trading partners, with the highest duty on the United States. Meanwhile, the US Commerce Department will investigate unfair subsidization of certain aluminums made in China.
Read CFR's Asia Unbound blog, featuring timely analysis from CFR's Asia experts.
ELSEWHERE:
Israel Rejects East Jerusalem Building Halt
US Removes Nigeria from Terror List
This is an excerpt of the CFR.org Daily News Brief. The full version is available on CFR.org.