Today’s Headlines…

Today’s Headlines…

FDIC’s Bair to Tell Congress Banks Need to Raise More Capital
Bloomberg
“It is the FDIC’s experience that most banks can and do raise capital when needed, even banks in extreme financial difficulties. The most important obstacle to raising capital is often banks’ reluctance to dilute existing shareholders.

FDIC Properly Estimating Costs of Dodd-Frank Rules, Agency Watchdog Says
Bloomberg
“We found that the FDIC assigned highly qualified subject matter experts to develop the technical aspects of the proposed rules and to conduct economic analysis, where appropriate,” the FDIC inspector general said in a report requested by Republicans

US FDIC worries EU banks may hurt financial system
Reuters
WASHINGTON, June 15 (Reuters) – A top US bank regulator said she is concerned that the European banking system had the potential to become a future source of financial instability, according to testimony obtained by Reuters on Wednesday.

US factory output rose in May after April decline
BusinessWeek
The Federal Reserve says factory production increased 0.4 percent last month. The increase follows April’s decline of 0.5 percent. A rise in business equipment and construction materials offset the second straight decline in auto production.

PIMCO’s Gross tweets Fed will curb Treasury yields
Reuters
By Jennifer Ablan NEW YORK (Reuters) – Bill Gross said the Federal Reserve next week could signal that interest rates could be capped if warranted due to soft economic growth. The world’s largest bond fund manager said on Twitter late Tuesday: “QE3

Fed’s Tarullo Urges Global Regulators to Align Risk Standards
Bloomberg
By Craig Torres and Cheyenne Hopkins – Wed Jun 15 22:31:12 GMT 2011 Federal Reserve Governor Daniel Tarullo called on global bank regulators to better align capital standards to risks in bank portfolios worldwide. Fed officials and supervisors from

Fed could soon set inflation target
CNN
By Chris Isidore @CNNMoney June 15, 2011: 2:27 PM ET NEW YORK (CNNMoney) — The Federal Reserve, long under attack by those who fear its policies are sowing the seeds of future inflation, could soon spell out the price increases it is aiming for.

TREASURIES-Bonds surge as data, Greek woes drive safety bid
Reuters
The Federal Reserve Bank of New York said its index measuring factory activity in New York State contracted for the first time since November, surprising economists, who had expected a rise. In news that further drove a safety bid for US government

The Core US CPI Surprise Overshadows Commodities Drop
IMarketnews.com
By Chris Cermak WASHINGTON (MNI) – The unexpected increase in core US inflation in May could catch the attention of senior Federal Reserve officials, who have until now cautioned against reading too much into headline inflation gains over the last few

UPI NewsTrack Business
UPI.com
A report from the New York Federal Reserve showed manufacturing activity in the Empire State contracted in June with the headline index falling 20 points to minus 7.79. The federal government said consumer prices rose 0.2 percent in May compared with

U.S. debt limit debate down to wire
USA Today
Federal Reserve Chairman Ben Bernanke says it would lead to “severe disruptions” in financial markets, lower credit ratings and damage to the dollar and Treasury securities. The centrist Democratic think tank Third Way claims the gyrations in labor,


U.S. Homeowners Build Equity Faster in Refinancing Shift to 15-Year Loans
Bloomberg
Falling home prices reduced average homeowner equity to 38 percent of property value in the first quarter, close to the lowest level since World War II, according to a June 9 report by the Federal Reserve. More than 28 percent of homeowners with

Bill for jobless to reach Corbett
Pittsburgh Post Gazette
Tom Corbett told the Associated Press the administration is working with the Legislature, but declined to say if the governor supports the revision. The potential loss of benefits arose due to the state’s improving unemployment rate.

Poll: Strong support for gas drilling in Pa.
BusinessWeek
Tom Corbett, who promised in his 2010 campaign not to increase taxes or fees, has said recently he would consider a fee that helps drilling communities cope with the impact. The Quinnipiac poll also shows that Pennsylvanians’ views of Corbett differ

Drilling impact fee bill heads to Pa. Senate floor
BusinessWeek
Tom Corbett are expected to intensify in the face of a June 30 deadline. “It needs to be part of the budget discussion,” said Sen. John T. Yudichak of Luzerne County, the ranking Democrat on the committee. Scarnati, R-Jefferson, said his goal is

Republicans seek economic analysis of DoddFrank
Reuters
Republican lawmakers, along with those affected by the 2010 DoddFrank reform law, have accused regulators of emphasizing speed over deliberation in writing new rules. They have been given ammunition by some of the regulators’ inspectors general.

Lenders Dig In on Rules
Wall Street Journal
Banks are warning that forcing them to reserve additional capital, at a time when they are already subject to numerous requirements under the Dodd Frank law, will put them at a competitive disadvantage and make them less likely to lend,

Investor ‘Say on Pay’ Is a Bust
BusinessWeek
As a result of the passage of the DoddFrank Act last July, shareholders for the first time can cast proxy votes on top executives’ compensation. Median pay of chief executives jumped 35 percent, to $8.4 million, for Standard & Poor’s 500 CEOs in 2010.

GOP sets sights on Consumer Bureau in latest approps bill
The Hill (blog)
The House Appropriations Committee on Wednesday released its fiscal 2012 appropriations bill for financial services, and it includes several efforts to curb the contentious new agency created by the DoddFrank financial reform law, as well as the law

US Business Group Tells Fed Big-Bank Rules Can Hurt Economy
Wall Street Journal
In a letter to the Fed chief dated Tuesday, the US Chamber of Commerce argued the higher capital standards for large, complex financial firms required by the DoddFrank financial regulatory law run the risk of hampering US banks’ ability to lend.

Debit Card Fee Cap Should Be Shelved During Suit, Bank Tells Appeals Court
Bloomberg
“The prices are going up while the cost of making the transactions are going down,” Miller said, explaining his support for the Durbin Amendment after years of opposing much government regulation. “The costs are much smaller than what they are charging

10 Regional Banks That Offer Earnings Hope
TheStreet.com
With the defeat in Congress of the Tester bill — meant to delay the implementation of the Durbin Amendment’s caps to the interchange fees large banks charge to merchants to process debit card purchases — analysts are likely to begin lowering earnings