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December 2, 2008 Sign up Forward Archive Advertise News on the capital markets, securities and financial industry   Morning Bell    U.S. has been in recession about a year, economists say The National Bureau of Economic Research confirmed that the U.S. economy officially slid into a recession about 12 months ago. "We will rewrite the record book on length for this recession," said Allen Sinai, president of Decision Economics in Lexington, Mass. "It's still arguable whether it will set a new record on depth. I hope not, but we don't know." Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson pledged to revive the economy using all means at their disposal. ClipSyndicate/Bloomberg (12/2), International Herald Tribune (12/2), Financial Times (free content) (12/1) Paulson says Treasury developing programs to aid economy: Speaking at a Fortune 500 Forum, U.S. Treasury Secretary Henry Paulson said his department is creating programs to boost lending and stabilize the economy, although he offered few details. "We are actively engaged in developing additional programs to strengthen our financial system so that lending flows into our economy," Paulson said. "When these programs are ready for implementation, we will discuss them with the Congress and the next administration." Reuters (12/1)   Video View  10-year Treasuries fall to lowest level in 30 years Yields on 10-year Treasury bills fell to 2.719%. The drop put the 10-year notes at their lowest level in more than 30 years. Meanwhile, the two-year yield fell below the federal-funds target rate of 1%. ClipSyndicate/Bloomberg (12/1), The Wall Street Journal (tiered subscription model)/Dow Jones Newswires (12/2)   Industry News  Cost of protecting debt against default hits record high Concerns about a recession and the world economy sent the cost of protecting bonds from default to an all-time high this week. Weakening manufacturing figures throughout Europe, the U.K., China and the U.S., as well as slumping equity markets, have hit credit default swaps. The iTraxx Crossover index reached a record high of 934 basis points. Financial Times (free content) (12/1) Paulson to try to persuade China to allow greater access Treasury Secretary Henry Paulson's goal of persuading China to open its market to Wall Street is becoming more and more elusive. As the global financial crisis drags on and with the U.S. economy in recession, Paulson is expected to face resistance to the argument that U.S. financial institutions will drive economic growth. The Wall Street Journal (tiered subscription model) (12/1) Some mortgage lenders increase market share in downturn Some financial institutions are using the global financial crisis as an opportunity to increase market share. At U.S. Bancorp, for example, mortgage originations were up 35% to $25.95 billion in the first three quarters of 2008. The shift comes as big U.S. banks continue to scale back mortgage lending. The Wall Street Journal (tiered subscription model) (12/2) Shares of Deutsche Bank fall as it forgoes capital assistance Deutsche Bank executives have rejected the idea that the Germany banking giant may need a government rescue despite the falling price of its shares. "We do not know what is going to happen to the world tomorrow or the day after tomorrow," said Stefan Krause, chief financial officer of Deutsche. "And therefore we can only say that so far we have navigated through the crisis very well." NYTimes.com (12/1) Other News Washington Mutual's work force down 21% after latest cuts Reuters (12/1) GE sees profits meeting low end of forecast Financial Times (free content) (12/2) The Buzz(CORPORATE ANNOUNCEMENTS) Take a closer look at First Clearing. Clear Thinking isn't a catch phrase - it's how we approach business and relationships with clients. We offer a platform of products and services that will enable you to compete on a level playing field with any firm in the business. Call 1-800-727-0304 or visit www.firstclearing.com. Interested in learning more about advertising in SIFMA SmartBrief? Contact Abiy Bekele at 212.450.7919 or abekele@smartbrief.com.     Regulatory Roundup  Bernanke outlines steps Fed might take to boost economy As the National Bureau of Economic Research announced that the U.S. has been in a recession for about a year, Federal Reserve Chairman Ben S. Bernanke said further reductions in interest rates were "certainly feasible." However, the Fed doesn't have a lot of room to maneuver with the benchmark rate already at 1%, so Bernanke emphasized other tools available to the Fed. The Wall Street Journal (free content) (12/2), Bloomberg (12/2) Paulson calls for revamp of regulatory system Describing the U.S. regulatory structure as outmoded and outdated, Treasury Secretary Henry Paulson called for a system to oversee the entire financial sector, including traditionally regulated institutions as well as nonbanking institutions, derivatives, hedge funds and state mortgage agencies. He said the international regulatory system also needed to be overhauled. Financial Week (12/1) Governors to push Obama for infrastructure, Medicaid funding The nation's governors are expected to lobby for a $176 billion piece of the proposed economic-stimulus package when they meet with President-elect Barack Obama in Philadelphia today. About $136 billion of the request would be for infrastructure projects, with the remaining $40 billion going to boost Medicaid funding. The proposed stimulus, according to congressional Democrats, could exceed $500 billion. The Washington Post (12/2), Politico (Washington, D.C.) (12/2) Other News Japan offers lessons on heading off U.S. deflation International Herald Tribune/Reuters (12/1)   SIFMA News  SIFMA's Industry Compensation Reports Now Available For Purchase SIFMA's 2008 compensation reports, Management & Professional Earnings in the Securities Industry and Office Salaries in the Securities Industry, are now available for purchase. These reports provide 2008 base salary and 2007 base salary, bonus, other cash compensation and total compensation for 240 management and professional positions, and 96 clerical positions nationwide. Click here to buy the report on Management & Professional Earnings. Click here to buy the report on Office Salaries in the Securities Industry. For more information, please contact Nancy Cosentino. SIFMA Events: Your tickets to keeping abreast of the industry SIFMA conferences and events bring together policymakers, regulators and industry experts to examine and discuss the changing landscape of financial services. Make an investment by clicking here, in order to serve your firm and your clients better by being part of these premier industry events. SIFMA is your powerful resource regarding the securities industry and the global capital markets. SIFMA Resources SIFMA.org  |  Advocacy  |  Educational Programs/Conferences  |  Newsroom Legislative and Regulatory Activity  |  Member Committees  |  Newsletters   SmartQuote  Anything that won't sell, I don't want to invent. 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