Congress to Geithner: Where's the bailout money?; Chinese car-makers to go global; Russia looks to new European security plan; South Africa on verge of elections; and more
Top of the Agenda: TARP Questions
Fresh concerns about the U.S. bank bailout package, the Troubled Assets Relief Program, or TARP, are likely to surface today. The Financial Times reports U.S. Treasury Secretary Timothy Geithner will face questioning on Capitol Hill following the release of a new report criticizing aspects of the TARP. The report is by SIGTARP, an independent watchdog group commissioned by Congress to monitor TARP funds. The Wall Street Journal reports that the group criticizes Geithner's Treasury department for failing to sufficiently track money used in bank bailouts.
The text of the report will be posted on SIGTARP's website later today.
Geithner will likely also face questioning on stress-test results at major U.S. banks, which are due out in a few days, as well as recent discussion over whether banks should be allowed to repay bailout funds early if they so choose. In a new interview with the Journal, Geithner says the financial health of banks won't be the only determinant of whether they will be allowed to repay funds--the potential impact on the broader economy will also be a consideration.
Related Analysis:
- A new piece in the Economist looks at the interplay between politics and financial policy, noting the deleterious effect political roadblocks can have on sound economic policy.
Background:
- This Backgrounder explains some of the programs Geithner's Treasury has put in place.
- Here, for reference, is the text of the TARP.
PACIFIC RIM: Korea Talks
North and South Korea are preparing to hold their first bilateral talks in more than a year today in the Kaesong industrial complex run jointly by the countries. Yonhap reports the start of the talks has been delayed due to disagreements over format.
The Chosun Ilbo says the United States seems to have put the North Korea issue on the diplomatic backburner.
CHINA: The Global Times, a new state-run Chinese newspaper, reports on the Auto Shanghai 2009 exhibition and discusses how Chinese automobile manufacturers are preparing for global competition.
- A 2007 Backgrounder from CFR profiled China's motor vehicle and aerospace industries.
ELSEWHERE:
Final campaigning ahead of South African elections.
Medvedev suggests plan for improving Europe's energy security.
This is an excerpt of the CFR.org Daily News Brief. The full version is available on CFR.org.