The Congressional Oversight Panel released a new report assessing the overall effectiveness of the Troubled Asset Relief Program (TARP) which was introduced six months ago. The executive summary is worth a quick review particularly given that TARP is very much in the news these days with the Wall Street Journal and others reporting an expansion of the program to life insurers that were previously not eligible for assistance. Read this post for details.
Leaders of the Group of 20 nations released a communiqué today outlining a number of measures intended to help the global economy recover from the current worldwide recession. While the details of the massive $1 trillion commitment quadrupling the capacity of the IMF has dominated most headlines, I found the strong language intended to discourage protectionism to be perhaps more important.
There has been much debate in recent days regarding whether the market for Credit Default Swaps (CDS) should be more tightly regulated. Let’s take a look at the nature of credit default swaps and whether arguments for tighter regulation have merit.