WASHINGTON -- Some of the toughest questions for JPMorgan Chase CEO Jamie Dimon during Tuesday's House Financial Services Committee hearing came from lawmakers who will either not be returning to Congress next year or will face steep hurdles to reelection.
The House panel is already known on Capitol Hill as the "cash committee" due to its members' penchant for Wall Street fundraising, but it will have even fewer critics of the financial establishment next year.
Rep. Barney Frank (D-Mass.), the ranking Democrat on the committee, provided some of the harshest questioning of Dimon early in the hearing, accusing Dimon of a "filibuster" and of deliberately misconstruing Frank's questions.
"I'm disappointed," said Frank, who is retiring at the end of the year.
Rep. Brad Miller (D-N.C.) pressed Dimon on a potential securities law violation, forcing him to dodge questions and resort to legally open-ended language about his "knowledge at the time." Miller has been redistricted out of his seat.
Later in the hearing, Rep. Brad Sherman (D-Calif.) bluntly declared that Dimon's bank is "too big to fail," and criticized Dimon for sending billions to London for risky derivatives trades, instead of lending the money to companies at home.
"You put forward the idea that ... there weren't small- and medium-sized businesses in the United States that were creditworthy that wanted the money," Sherman said. "And I assure you, there isn't a member of this panel that couldn't bring you 100 small- and medium-sized businesses, creditworthy, in need of loans from you. And instead, you took the $350 billion to London."
Sherman is embroiled in a bruising campaign against Rep. Howard Berman (D-Calif.), a contest prompted by a separate redistricting plan.
Although the Dodd-Frank financial reform bill bears Frank's name, Sherman and Miller have been more critical of the Wall Street establishment during their tenure in Washington, and are almost certainly paying for that vocal opposition with their seats. Sherman has been out-fundraised by Berman, a favorite of Hollywood and the entertainment industry. Miller wrote the major consumer protection rules on mortgage lending for the 2010 Wall Street overhaul, and like Frank, was a critical legislative negotiator who shepherded the bill through Congress. That effort earned him the ire of a host of bank-affiliated business groups in North Carolina, where two of the most active subprime lenders of the past decade, Bank of America and Wells Fargo, have a major presence.
The Tuesday hearing followed Dimon's appearance before the Senate Banking Committee last week. House lawmakers were at times more aggressive than their Senate counterparts, who inspired a battery of criticism for their deferential treatment of Dimon. Freshman Rep. Sean Duffy (R-Wis.) pushed Dimon on whether his bank was "too big to manage" or "too big to regulate," while Rep. Maxine Waters (D-Calif.) hammered away at JPMorgan's reliance on flawed risk-modeling techniques.
But the committee's efforts in general this year have been overwhelmingly acquiescent to the preferences of big banks. Its official website lists nine pieces of bank deregulation that cleared the committee in 2011, plus one bill limiting debt issuance by Fannie Mae and Freddie Mac (even though, as wards of the state, Fannie and Freddie do not need to issue debt).
Historically, that deference to finance is a bipartisan phenomenon. For years, both political parties have packed the Financial Services Committee and its Senate counterpart with vulnerable lawmakers who can use their perch on the panel to leverage campaign contributions from Wall Street. And the major focus of the committees' efforts over the past three decades has been to deregulate Wall Street, with the Riegle-Neil Act of 1994, the Gramm-Leach-Bliley Act of 1999, and the Commodity Futures Modernization Act of 2000. Dodd-Frank, passed nearly two years after the financial crash of 2008, was pilloried by loopholes imposed by members of the House and Senate banking committees.
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US STOCKS SNAPSHOT-Wall St little changed ahead of Fed announcement - Reuters UK
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Stocks Showing A Lack Of Direction In Early Trading - U.S. Commentary - RTT News
6/20/2012 10:00 AM ET
(RTTNews) - With traders reluctant to make any significant moves, stocks are turning in a lackluster performance in early trading on Wednesday. The major averages are lingering near the unchanged line after ending the previous session sharply higher.
The major averages are currently turning in a mixed performance, with the Nasdaq posting a modest gain. While the Nasdaq is up 1.70 points or 0.1 percent at 2,931.46, the Dow is down 18.39 points or 0.1 percent at 12,818.94 and the S&P 500 is down 1.76 points or 0.1 percent at 1,356.22.
The choppy trading on Wall Street comes as many traders have moved to the sidelines ahead of the Federal Reserve's monetary policy announcement later this afternoon.
Stocks have moved notably higher in recent sessions amid optimism that the Fed will announce additional measures to stimulate the sluggish economy in light of a recent batch of disappointing U.S. economic data as well as the ongoing financial crisis in Europe.
Many analysts expect the Fed to announce an extension of "Operation Twist," which involves replacing short-term securities in the Fed's bond portfolio with longer-term securities in an effort to push already low long-term interest rates even lower.
Peter Boockvar, managing director at Miller Tabak, said, "Putting aside what they should do, what they will do is something, because the last thing they did is expiring."
"If twisting is all we get, if at all, stocks are a sell on the news, because I believe the only thing keeping this rally alive are the hopes and wishes for bailout/easing help," he added. "It is certainly not on the outlook for global economic growth."
Following the release of the statement, the Fed's revised economic forecasts may attract some attention along with Chairman Ben Bernanke's press conference.
Most of the major sectors are showing only modest moves, although considerable weakness has emerged among gold stocks. Reflecting the weakness in the gold sector, the NYSE Arca Gold Bugs Index has tumbled by 2.2 percent.
The weakness among gold stocks comes amid a decrease by the price of the precious metal, with gold for August delivery sliding $15.70 to $1,607.50 an ounce.
While railroad stocks are also seeing some early weakness, moderate strength is visible among semiconductor stocks.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Wednesday, benefiting from the overnight rally on Wall Street. Japan's Nikkei 225 Index surged up by 1.1 percent, while Hong Kong's Hang Seng Index rose by 0.5 percent.
Stocks Open Flat Ahead of Fed; P&G Slides - CNBC
Stocks edged lower Wednesday, with the market waiting to see whether the afternoon's Federal Reserve policy decision held any big market-making news.
Weakness in consumer stocks highlighted trading, while JPMorgan Chase moved ahead on a rare bit of good news regarding the $2 billion it lost in a much-examined trade gone wrong.
Disappointing news from Dow component and market leader Procter & Gamble [PG Loading... () ] limited gains, as consumer staples shares tumbled and pulled down the Standard & Poor's 500.
P&G forecast that annual earnings for its coming fiscal year would be either flat or up by a mid-single digit percentage amount, with underlying sales set to show a 2 to 4 percent increase.
Walgreen [WAG Loading... () ] faded as well on news that the pharmacy chain will spend $6.7 billion to purchase nearly half of Alliance Boots, a European pharmacy giant.
Utilities stocks also led the market lower, while energy and technology shares were the top performers.
The Federal Reserve concludes its two-day monthly policy meeting on Wednesday, and investors are curious whether it will restart its government asset swap program known as “Operation Twist” in order to drive down interest rates and boost risk assets.
The Fed makes its announcement at 12:30 a.m. New York time. Interest rates are unlikely to change, and there was considerable doubt over whether the Fed's announcement would contain anything groundbreaking like a third round of quantitative easing.
"We expect Fed officials to sound very dovish, lower their forecasts, and signal that they are on 'high alert.' Nonetheless, markets may still be disappointed," said Michael S. Hanson, U.S. economist at Bank of America Merrill Lynch. "The market is now pricing in roughly a 70 percent chance of QE3. We think they are right, just not for this week."
Historically speaking, Fed meetings have been positive for the market, at least since the dawn of the financial crisis in 2008.
The Standard & Poor's 500 has gained an average 0.74 percent on Fed days since the central bank began its zero interest rate policy.
JPMorgan Chase [JPM Loading... () ] led gainers on the Dow industrials, with the bank rising on a CNBC report that it had sold off up to 70 percent off the positions that helped incur the losses of the so-called London Whale trades.
Cisco [CSCO Loading... () ] also was a strong performer on the bluechip index, gaining after BMO Capital Markets raised its price target for the networking company.
In addition to P&G, Caterpillar [CAT Loading... () ], which has helped lead the market rally, was off sharply in early trade.
Research in Motion [RIMM Loading... () ] also continued its precipitous decline, losing another 5 percent as the BlackBerry maker begins laying off employees as part of a broad restructuring to cut costs.
In other markets, commodity prices were under pressure, with gold and oil posting drops as crude hit session lows following a report showing a gain in inventories.
Government debt prices dropped sharply, with the 30-year bond losing more than a point in price as its yield rose to 2.79 percent. Benchmark 10-year notes carried a 1.67 percent yield.
Elsewhere in corporate news, Indenix Pharmaceuticals [IDIX Loading... () ] shares surged 12 percent on positive testing news for its hepatitis C drug IDX184.
Tesla Motors [TSLA Loading... () ] jumped 5 percent on an upgrade from Goldman Sachs.
Adobe Systems [ADBE Loading... () ] fell 5 percent after it cut its full-year revenue outlook, suggesting that weak demand in Europe could affect sales of recently launched versions of its popular design software.
FSI International [FSII Loading... () ] forecast a weak fourth quarter as customers delay spending amid the global economic slowdown, sending the company's shares down 15 percent in after-hours trading on Tuesday.
Jabil Circuit [JBL Loading... () ] forecast fourth-quarter results below analysts' estimates on Tuesday, blaming stagnating sales, but the electronics maker's shares rose on expectations that it retained a key mobile phone customer.
Earnings released on Wednesday include Bed Bath & Beyond [BBBY Loading... () ]and Red Hat, [RHT Loading... () ] both coming after the closing bell.
Coming Up This Week:
THURSDAY: Jobless claims, PMI manufacturing index flash, existing home sales, Philadelphia Fed survey, FHFA home price index, leading indicators, Best Buy shareholders mtg, Google shareholders mtg; Earnings from ConAgra, Rite Aid
FRIDAY: Earnings from Darden Restaurants
Nine in 10 primary care trusts restricting treatment due to financial pressures - Daily Telegraph
“The NHS medical director has written to trusts to tell them the only criteria of decision must be clinical and not financial.
"The Department of Health will look into any cases where they are using financial conditions."
Rationing treatments across the NHS is leaving patients with the "agonising" decision whether to pay for treatments which are available for free in other parts of the country, the shadow health secretary has warned.
Earlier shadow health secretary Andy Burnham said rationing by health bodies has led to 125 previously free treatments being restricted or even stopped in the last two years.
Patients in some parts of England are being forced to pay for operations such as or knee and hip replacements.
He called on ministers to launch a review into "crude and random" rationing in the NHS.
He said a number of the treatments which have been restricted seriously affect the quality of life of patients.
"Right now, a postcode lottery is running riot through the NHS in England," said Mr Burnham.
"We have identified 125 separate treatments which have been restricted or stopped altogether by at least one PCT (Primary Care Trust) in England.
"Thousands of patients across England are left in pain, discomfort or unable to live their lives facing the agonising choice of paying to go private or going without.
"There is a growing gap between ministers' complacent statements about the NHS and peoples' real experience of it. Ministers now need to act without delay."
Shadow health minister Jamie Reed said some of the restricted treatments are of "real clinical importance to patients".
Labour questioned all PCTs and Clinical Commissioning Groups (CCGs). Of the two-thirds of trusts that responded to the survey, 46% said they had restricted or decommissioned services in the last two years.
A quarter of trusts said they had rationed tonsil removal and 21 said they had restricted varicose veins treatment.
Knee surgery or replacement and hip operations were restricted by 21 and 18 trusts or CCGs respectively.
Cataracts treatment was restricted to patients in 16 different trusts across England.
Mr Burnham said Labour launched the NHS Check website to investigate reports of maltreatment of patients.
The site was launched after the party received reports of patients being denied treatments which were previously free.
He spoke about a female patient in Cheshire who was denied wart removal at her GP practice where she had previously had the treatment done free of charge. She was subsequently informed that a private clinic had opened in the same building offering the treatment at a cost.
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