Tales from the Trail

Washington Extra – Chicken and ducks

USA-HEALTHCARE/The wrangling continues over the Bush-era tax cuts. President Barack Obama said he was confident Democrats and Republicans could break the deadlock and reach a deal soon. But with time running out, there is something of a game of chicken being played by the two sides. Each is watching to see who blinks first, and with the economy still struggling, both know the stakes are high.

 

Texas Republican Congressman Jeb Hensarling warned of the risks of failure:  “In a lame duck session, a lame duck Congress should not turn our economy into a dead duck economy.”

 

Let’s just hope they don’t duck the issue.

 

Here are our top stories from Washington today…

 

White House memo outlines new anti-leak measures

The White House has set up a special anti-WikiLeaks panel after the embarrassing flood of State Department cables leaked by the website, and its proposals include teams of inspectors who would prowl government agencies looking for ways to tighten security. A four-page draft memo circulated by the White House says President Obama’s national security staff has created an “Interagency Policy Committee for WikiLeaks.”

 

For more of this story, read here.

 

Geithner, lawmakers debate Bush-era tax cuts

President Obama’s top economic advisers and key leaders in Congress haggled over how to extend low Bush-era tax rates on Wednesday, seeking to break a political deadlock and prevent taxes from rising next year. Treasury Secretary Timothy Geithner, who is leading negotiations for the White House with budget director Jack Lew, said participants had a “civil, constructive discussion” but he would not talk about where those talks were heading.

 

For more of this story by Kim Dixon, read here.

 

U.S. sees big costs for banks to fix foreclosures

Banks will have to cope with big costs to clean up their foreclosure practices, with some lenders also facing “significant exposure” to investor demands that they buy back faulty mortgages, a top official said. Fed Governor Daniel Tarullo was hesitant to put a number on the potential costs and told a Senate hearing regulators are trying to get a handle on the threat to the financial system.

Think brussels sprouts and cauliflower are agricultural commodities? Think again.

While the financial bailouts tossed to automakers, banks and other groups during the recent economic crisis left a funny taste in the mouth of some Americans, one former U.S. regulator hopes efforts to prevent another panic doesn’t go rotten.

The U.S. Commodity Futures Trading Commission is immersed in drafting dozens of rules to assist it in increasing oversight of the once opaque over-the-counter derivatives market, widely blamed for exacerbating the recent financial crisis. USA/

Among the rules it must craft is what the definition of an agricultural commodity is? Of course, corn, cotton, soybeans and livestock, among other items, fall into this realm.

Washington Extra – Ducking the issue

U.S. Treasury Secretary Timothy Geithner testifies before a Senate Banking, Housing and Urban Affairs Committee hearing on The Treasury Department's Report on International Economic and Exchange Rate Policies on Capitol Hill in Washington September 16, 2010.

We were all primed for the release of the Treasury’s global currency report this afternoon, which would have included a ruling on whether China was a currency manipulator. But a decision was taken to delay the report until after the Group of 20 summit in Seoul in mid-November.

Pressure from lawmakers and business had been mounting on President Barack Obama to act, but the delay shouldn’t come as a big surprise. After all, Treasury Secretary Tim Geithner told Congress last month he wanted to rally the G20 around the issue and take a multilateral approach. Perhaps more importantly, the administration is conveniently ducking the issue until after the Nov. 2 congressional elections.

Some Democrats, who have made China’s currency practices an issue in their campaigns, are disappointed today. Our Breakingviews columnist James Pethokoukis says Obama should be given credit for resisting populist pressures for the second time this week, after also declining to heed appeals to impose a national moratorium on home foreclosures.