Free Republic

Summary: Over 100 cities have pledged to create bold climate action plans as President Obama & Secretary Kerry travel to Paris to negotiate an international climate agreement. In August, as part of an ambitious plan to expand renewable energy to households across America, President Obama called on all U.S. mayors to publicly commit to a local climate action plan. The President set a goal of at least 100 U.S. cities signing the Compact of Mayors prior to the Paris UN climate change meeting (“COP”). Today, that goal has not only been met, but surpassed. Why are U.S. cities so important...

Congress passed a two-month unemployment extension bill for those who were facing the possibility of losing their unemployment insurance benefits. The unemployment benefits extension program is set to go into February 2010, but there has been a great deal of confusion as to what the unemployment extension means and who qualifies. Originally, a six-month extension was wanted, however, the bill passed a two-month extension, which does the following: To begin, the extension will allow the continuation of Emergency Unemployment Continuation Program, which provides unemployment benefits in relation to a specific state’s unemployment rate. Secondly, the unemployment benefits extension continues the...

(snip) I am concerned, however, that a number of the legislative proposals being circulated would significantly reduce the capacity of the Federal Reserve to perform its core functions. Notably, some leading proposals in the Senate would strip the Fed of all its bank regulatory powers. And a House committee recently voted to repeal a 1978 provision that was intended to protect monetary policy from short-term political influence. These measures are very much out of step with the global consensus on the appropriate role of central banks, and they would seriously impair the prospects for economic and financial stability in the...

(snip) "We participated in things that were clearly wrong and have reason to regret," said Goldman Sachs’ Lloyd Blankfein. "We apologize." Blankfein had told a British newspaper the other day that Goldman was doing “God’s work”. That caused a firestorm online. (snip)

Regulators have shut Warren Bank in Warren, Mich., and two small banks in Colorado and Minnesota, boosting the number of failed U.S. banks this year to 98 as loan defaults rise in the worst financial climate in decades. The Federal Deposit Insurance Corp. took over Warren Bank, with about $538 million in assets and $501 million in deposits as of July 31. The Huntington National Bank, based in Columbus, Ohio, agreed to assume the deposits and about $83 million of the assets of the failed bank. The FDIC will retain the remaining assets for later disposition. Warren Bank's six branches...

The International Monetary Fund is open to a plan that would see banks contribute to an insurance policy against a future economic collapse, the agency revealed on Friday. "Considering that the financial sector is creating a lot of systemic risk for the global economy," said the fund's managing director Dominique Strauss-Kahn, "it is just fair that such a sector would pay some part of its resources to help mitigate the risks that they are creating."

My mother would have understood the implications of the Federal Deposit Insurance Corp.'s recent announcement that it is requiring U.S. banks to collectively remit advance payment of some $45 billion in future deposit insurance premiums. As a grade-schooler, I had to clear big purchases with her, even if the cash came from my own piggy bank. "I'll pay for it with my own money," I'd plead when she vetoed some imprudent outlay. "It's still all gotta come out of this one old farm," she would reply. Banks may write the checks for FDIC premiums, but the money really has to...

WASHINGTON – Big job losses and a spike in early retirement claims from laid-off seniors will force Social Security to pay out more in benefits than it collects in taxes the next two years, the first time that's happened since the 1980s. The deficits — $10 billion in 2010 and $9 billion in 2011 — won't affect payments to retirees because Social Security has accumulated surpluses from previous years totaling $2.5 trillion. But they will add to the overall federal deficit.

After years of selling cheap goods to debt-fuelled Western consumers, China now has $2 trillion dollars of foreign exchange reserves. That's 2,000 billion – a reserve haul no less 25 times bigger than that of the UK. BY LIAM HALLIGAN (snip) The entire non-Western world rightly sees serious inflationary pressures down the track in the US, UK and other nations where political cowardice has resulted in irresponsible money printing. (snip) ...to send the dollar into freefall. US inflation would then soar and interest rates would have to be jacked up. Even if a fast-collapsing dollar is avoided, Fed rates may...

As the recession and bailout have pushed this year's federal budget deficit to an unheard-of $1.6 trillion, an unpleasant reality has dawned: Taxes are going up. The only questions are when, how much, and for whom? The answers depend on the shifting sands of wealth politics and the scope of health-care revision. "But everybody thinks that by 2011 tax rates will be higher, at least for those with higher incomes," says Thomas Ochsenschlager, a tax official at the American Institute of Certified Public Accountants.

The US Federal Reserve's policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy. BY AMBROSE EVANS-PRITCHARD Cernobbio, Italy. Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing". "We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on...

The rate at which jobs were cut slowed in August, but the gap to be filled will be with us for a while. With 14.9 million people looking for jobs according to Moody's Economy.com, the unemployment rate won't hit 5% -- considered "normal" -- until 2014. To put this in perspective, we still have one presidential election and two mid-term contests between now and a full employment recovery.

A large Spanish bank has won the bidding for Austin-based Guaranty Financial Group, according to the Wall Street Journal and Bloomberg News. Federal regulators who have essentially been running Guaranty in recent months have chosen Banco Bilbao Vizcaya Argentaria as the buyer. The Wall Street Journal and Bloomberg News both said that regulators had chosen BBVA, citing unnamed sources close to the negotiations. The Federal Deposit Insurance Corp. is expected to make the announcement Friday. Under the expected scenario, the FDIC will seize Guaranty, then sell most or all of it to BBVA. Guaranty’s financial condition has been deteriorating for...

NEW YORK — Regulators on Friday shut down two banks in Florida, bringing to 71 the number of federally insured banks to fail this year under the weight of the weak economy and rising loan losses. The Federal Deposit Insurance Corp. was appointed receiver of the banks: First State Bank of Sarasota, Fla., and Venice, Fla.-based Community National Bank of Sarasota County. First State Bank had total assets of $463 million and deposits totaling $387 million. Community National Bank had $97 million of assets and $93 million in deposits.

NEW YORK (Fortune) -- Guaranty Bank is hardly a household name. But the Austin, Texas-based thrift's looming failure is shaping up as a big headache for bank supervisors -- not to mention a black eye for Carl Icahn and others in the smart money set. Guaranty (GFG) could be soon seized by the government in what would be the biggest bank failure in a year that has already had 64 of them. Last week, the bank warned investors to expect a federal takeover after regulators forced a writedown of its risky mortgage investments and a bid to raise new capital...

US State Dept has advised embassies worldwide to stock up on a year's worth of the local currency in anticipation of collapse of the US dollar. Look for a temporary banking shutdown timed for around September 2009. As under Roosevelt, some banks won't reopen. 96% of bank reserves are currently held with the Federal Reserve who tells the banks not to loan the money, but rather to save it for further banking acquisition and consolidation. Chapman foresees a bank holiday lasting 4-5 days. Chapman thinks this first bank holiday presages a much more significant bank holiday months to years later...

HOLLAND, Ohio (Reuters) - "Joe the Plumber," who came to symbolize U.S. taxpayer frustration during last year's election, sounds even angrier now at what he sees as excessive government spending on the economy and healthcare reform. "The politicians in Washington are spending trillions of dollars of our money. When are Americans going to stand up and say enough is enough?" said Joe Wurzelbacher, 35, in an interview on Friday at his modest suburban Ohio home. "Instead of spending more of our money, they should cut back like ordinary Americans are having to. Why do they think they can spend their...

AUSTIN, Texas -- Bank holding company Guaranty Financial Group Inc. said it is "probable it will not be able to continue as a going concern" as it restated results that include an additional $1.45 billion in write-downs. The moves, disclosed in a securities filing Thursday, set the stage for the Federal Deposit Insurance Corp. to take over operations of the company, including more than 160 branches in Texas and California. With about $15 billion in assets, Guaranty could become the biggest federally insured financial firm to fail this year. In May, the banking operations of BankUnited FSB in Coral Gables,...

U.S. regulators closed seven small banks on Friday, a pace matching a one-day total seen earlier in July and bringing the number of failures so far this year to 64. Six of the banks were in Georgia and were subsidiaries of Security Bank Corp, having a total of 20 branches, $2.8 billion in assets and about $2.4 billion in deposits, the Federal Deposit Insurance Corp said. State Bank and Trust Co of Pinehurst, Georgia, agreed to assume all of the deposits at the six banks, whose branches will reopen under State Bank's name. State Bank will also purchase $2.4 billion...

Michigan's unemployment rate could hit as high as 20 percent with the Obama administrationto blame, one Michigan congressman warned Friday. Rep. Thaddeus McCotter (R-Mich.) said that Michigan's unemployment — already the highest in the country at 14.1 percent — could go even higher as General Motors and Chrysler continue to shed jobs after their government-financed bankruptcies. "Sadly, we've seen estimates, because of the radical restructuring that the auto task force demanded, that this year, Michigan wind up over 20 percent