Today, Geithner is likely to be grilled on the handling of the AIG bonuses and the new Public Private Investment Program (PPIP). Congress is certain to be in a tizzy about the plan's loan structure, particularly the granting of non-recourse loans to participating hedge funds.
Given the strong positive reaction in the stock market, the House of Representatives Financial Services Committee is likely to take a less adversarial tone then it might have last week.
On Thursday, Geithner will appear in front of the same House of Representatives Financial Services Committee. The hot scheduled topics is "systemic risk". Sure to be a hot potato in today's environment.
The discussion and debate about systemic risk will include ideas and plans about how large financial institutions should be regulated in the future. This is sure to develop into a turf war. The remedy could be as simple as giving additional authority to existing agencies. Or, given congresses penchant for creating new entities, spending money, and creating jobs to help keep themselves in office a new kind of super agency could be on the table.
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 Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments. |
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