Attention rich people (and poor people too) be very afraid – Many See the VAT Option as a Cure for Runaway Deficits – Runaway federal deficits have thrust a politically unsavory savior into the spotlight: a nationwide tax on goods and services. – (I guess this means that the 45% of people that pay no federal taxes will have to start paying) too – BC) – NY Times
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The Overstimulated Economy – Bruce Bartlett – Additional stimulus spending could do more harm than good. – Forbes
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Salary boom for federal workers – For feds, more get 6-figure salaries – Average pay $30,000 over private sector – By Dennis Cauchon – The number of federal workers earning six-figure salaries has exploded during the recession, according to a USA TODAY analysis of federal salary data. Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession’s first 18 months — and that’s before overtime pay and bonuses are counted. Federal workers are enjoying an extraordinary boom time — in pay and hiring — during a recession that has cost 7.3 million jobs in the private sector. – USA TODAY
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IRS hires “hundreds” for new wealth unit – Kim Dixon – … The IRS high wealth unit, part of a broader effort to combat international tax evasion, is focusing on “the entire web of business entities controlled by a high wealth individual,” IRS Commissioner Doug Shulman told a tax conference this week. … The U.S. House of Representatives on Thursday approved a $387 million boost for the IRS … – Reuters
U.S. Rep Frank says Fed audit may send wrong signal – … But he said a House financial regulatory overhaul bill that passed on a 223-202 vote overreached. “I think the amendment that was adopted went too far,” Frank said. “I think it could give the perception that monetary policy is not going to be independent and that would have an inflationary effect in and of itself.” – Reuters
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BARCLAY’S: TREASURY’S COME A LONG WAY IN ALTERING THE AUCTION CALENDAR – BY CHRISTINE NIELSEN – Barclay’s strategist Anshul Pradhan … Pradhan concludes that auction sizes in the front end should remain unchanged and those at the intermediate and long end should gradually increase through the 2010 fiscal year as the average maturity increases to 60 months from the current 53 months. … – JLN Interest Rates
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Kucinich To Introduce Legislation To Mirror UK Banker Bonuses – Submitted by Tyler Durden – … It will be useful to see if the vote goes once again along party lines, in which case the banana republic nature of America will truly shine, as republicans and democrats finally confirm they have terminally flip-flopped on all issues pertaining to Wall Street, even as Main Street anger over banker compensation continues rising. … – Zero Hedge
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Tullett Prebon Will Help Brokers to Move Out of U.K. – By Ambereen Choudhury and Gavin Finch – Tullett Prebon Plc, the inter-dealer broker led by Terry Smith, said it will help employees to leave the U.K. following the government’s decision to put a 50 percent tax on bankers’ bonuses. – Bloomberg
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Obama’s capital gains tax cut would create tax shelters – Howard Richman – quite interesting – Trade and Taxes Blog
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It’s Not Too Late For Congress To Fix The Derivatives Market – Mark Sunshine – The financial reform legislation that passed the House last week doesn’t fix the derivatives market but there is still time to make it right. The Senate hasn’t passed its version of the bill and all Senators need to do is include a provision stopping the Federal government from preventing enforcement of state and local criminal gaming and bucket shop laws. With this simple legislative change bookies that run illegal derivatives casinos will face criminal prosecution rather than become millionaires who benefit from government bailouts and guarantees. – The Sunshine Report
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Support Grows for Fan-Fred Plan – Proposals to Reshape Mortgage Firms Call for Retaining – By NICK TIMIRAOS – … The latest, to be released at a private meeting on Monday, is from a group assembled by the Center for American Progress, a think tank with close ties to the administration. It calls for explicit federal guarantees on certain mortgage-backed securities and robust federal regulation to ensure that mortgages offered to the public are safe. … – Wall Street Journal
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Financial Regulatory Reform Overlooks the Financial Industry Regulatory Authority
Posted by Larry Doyle – Only in Washington could the promotion and passage of a piece of legislation known as Financial Regulatory Reform overlook the Financial Industry Regulatory Authority (FINRA). – Sense on Cents
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FDIC alleges BankUnited staff hurt bank – by Brian Bandell – … The letter says the bank officials engaged in “unsafe and unsound” banking practices and breached their fiduciary duties. Its criticism centered around the bank’s payment option adjustable-rate mortgages (ARMs), … The FDIC alleged that the bank’s former officials altered its mortgage broker compensation and incentives that took away the incentive to sell any products besides option ARMs. …the FDIC alleged. … The FDIC faulted the underwriting practices at BankUnited FSB, saying that 82.6 percent of the bank’s loans were done with reduced documentation or no documentation. … – South Florida Business Journal
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Fannie Mae Losses May Exceed $200Bn: BarCap – By DIANA GOLOBAY – Eventual losses at mortgage giant Fannie Mae could exceed $200bn, posing a risk of receivership after year-end when limitations on the Treasury Department’s authority to support the agencies return, according to research Friday by Barclays Capital (BarCap) … – HousingWire