Big Ben speaks "TODAY TUESDAY" at 3:45pm est. Right before the closing bell.


Tuesday Look Ahead: Anxious Investors Will Watch Bernanke for Clues on Economy, Fed Moves

Fed Chairman Ben Bernanke weighs in on the economy Tuesday, and he is expected to acknowledge the recent slowdown but may withhold a view on the duration.

Bernanke speaks to markets that will be hypersensitive to any sign that the slowdown in growth could be more than just a short-term stall out. His comments also come just several weeks before the Fed is to scheduled to end its quantitative easing program, and investors will be looking for any sign of where the Fed stands on its extraordinary easing policies.

Bernanke speaks ahead of the market close, at 3:45 p.m. ET, at the International Monetary Conference in Atlanta.

"If I'm at the Fed, I'm very much in a wait and see mode. I don't want to seem too sanguine, and look like an idiot two months later if things do turn down. I also don't want to be complicit in talking the economy down. Definitely if I'm Bernanke, I want to take an agnostic stance. These latest numbers have not been very good," said Stephen Stanley, chief economist at Pierpont Securities.

Boston Fed President Eric Rosengren told CNBC's Steve Liesman Monday that it's too soon to know whether the slowdown is more than temporary and that it's too early for the Fed to consider any further bond purchases. Many Wall Street economists believe the softness in the second quarter will be short-lived and was brought on by Japanese supply chain disruptions and higher oil prices.

Rosengren said the slowdown does have the potential to change the timing of the Fed's exit from its other easing programs. The quantitative easing program finishes at the end of June and involves the purchase of $600 billion in Treasury securities. But the Fed will continue a separate program to reinvest proceeds from its mortgage portfolio in Treasurys, plus it is undetermined when the Fed may make moves to reduce the size of its balance sheet.

Brown Brothers Harriman Chief Currency Strategist Marc Chandler does not see Bernanke setting off any alarms on the economy when he speaks. "My sense is he's going to be cautiously optimistic still, mentioning that some of the head winds are temporary, like the bad weather and the Japanese supply stuff. Bottom line, he'll recognize the weakness of the economy without endorsing" it's going to stall forever, he said.

http://www.cnbc.com/id/43303175

Geithner warns on light-touch oversight
By Tom Braithwaite in Washington and Nikki Tait in Brussels

Published: June 6 2011 16:47 | Last updated: June 6 2011 19:28

Tim Geithner, US Treasury secretary, warned overseas markets against undercutting American financial regulations, urging them to avoid following the “tragic” example that the UK set in light-touch oversight.

In outspoken remarks that outlined the US position on a range of international regulatory issues, Mr Geithner called for a global deal on derivatives and endorsed forcing the largest banks to hold more equity capital. But such a surcharge need not be “excessive”.

EDITOR’S CHOICE
In depth: US financial regulation - May-18Video: Derivatives view from Washington - Jun-06Economists’ Forum - Feb-25US defends its banking reforms - Jun-02EU warns US to speed up bank reform - Jun-01Regulation’s impact on global markets - May-29Mr Geithner said it was essential for Asia to fall into line in imposing tough restrictions on derivatives trading. Officials said there was concern that Singapore and Hong Kong could try to lure business with softer rules.

Alluding to the painful fallout from the financial crisis, Mr Geithner held up the UK’s past policies as a negative example.

“The United Kingdom’s experiment in a strategy of light-touch regulation to attract business to London away from New York and Frankfurt ended tragically,” he said. “That should be a cautionary note for other countries deciding whether to try to take advantage of the rise in standards in the United States.”

“As we act to contain risk in the US, we want to minimise the chances that it simply moves to other markets around the world,” Mr Geithner says. He says the US is going to “bring the world with us”.

Mr Geithner called for global agreement on how much collateral, or “margin”, to impose on uncleared derivative transactions. The Group of 20 nations has agreed that standardised over-the-counter derivatives should use clearing houses by the end of 2012 in an effort to improve transparency and safety of financial instruments blamed for exacerbating the financial crisis.

But there remain differences on what to do with uncleared transactions, with the US proposing to force counterparties to stump up more cash or safe securities against trade – a move fiercely opposed by banks and some large non-financial derivatives users.

Mr Geithner’s call for a common standard for margin – in the same way, he said, as the Basel committee agrees international bank capital rules – comes after warnings from Wall Street banks that business is set to migrate to Asia.

“Risk in derivatives will become concentrated in those jurisdictions with the least oversight. This is a recipe for another crisis,” Mr Geithner said. On bank capital rules, he said “a simple common equity surcharge should be applied internationally”.

Mr Geithner’s warning about a race to the bottom came as the International Monetary Fund backed the UK in a European fight over bank capital rules. The IMF said European Union members should be allowed to “gold-plate” capital requirements with higher minimums when national circumstances warranted.

There remain other transatlantic differences on financial reform, highlighted by letter sent last month to Mr Geithner from Michel Barnier, the European commissioner responsible for financial markets, where he argued that Brussels was ahead of the US in several areas – including capital requirements for banks and limits on bonuses for financial executives. “The level playing field must be a reality, not an empty slogan,” he wrote.


Yet Europe, too, is also most concerned by developments in other regions. Concerns that the imposition of tougher regulatory standards within the 27-country European Union bloc will simply push business into markets where standards are less onerous have been raised repeatedly in Europe.

The argument was made forcefully during the battle over new EU hedge fund rules, with claims that funds would move to Switzerland or Singapore – and resurfaced in the effort to cap bank bonuses.





The response of EU policymakers has been to publicly downplay the likely loss of business – but to also urge global compliance tougher regulatory guidelines. Mr Barnier has warned financial groups not to make a “bad calculation” for short-term profits.

Banks risk crisis trying to 'starve' reform: Geithner

WASHINGTON (CNNMoney) -- Treasury Secretary Tim Geithner called out Wall Street and lawmakers on Monday for trying to undermine last year's landmark financial reform law.

In a speech to bankers in Atlanta, Geithner singled out congressional efforts to block presidential appointees to agencies as well as efforts to "starve" regulators of funding they need to hire top-flight staffers.

"Over time these efforts will make it less likely there will be enough capable people to ensure the rules will work," Geithner warned.

Geithner wagged his finger at the largest banks, which play a big role in influencing policymaking in Washington.

This year alone, financial firms have spent $116 million lobbying Congress and federal agencies, according to the nonpartisan Center for Responsive Politics.

"Those of you who run major U.S. institutions, you should be champions, and not opponents, of getting stronger persons into these positions over time," Geithner said.

Geithner's comments come the same day that Nobel prize winner Peter Diamond withdrew his nomination to the Federal Reserve Board, citing Republican opposition.

Additionally, Senate Republicans have threatened to block any presidential nominee to run the Consumer Financial Protection Bureau unless the bureau's powers are weakened.

In the House, Republicans have called for drastic budget cuts to regulatory agencies charged with implementing the 2010 Dodd-Frank financial reform law.

The Securities and Exchange Commission says it has delayed implementation of some rules, like those cracking down on credit rating agencies, "due to budget uncertainty."

The SEC has also had to nix a move to bigger office space, which they thought they'd need to hire some 800 new staffers.

The issue of pay at regulatory agencies came up at tense congressional hearing last month about the new consumer bureau.

Lawmakers blasted Treasury official Elizabeth Warren, who is working to set up the bureau, for advertising jobs at the bureau that paid 60% to 90% more than equivalent positions in other parts of the federal government.

Warren defended the salaries, saying the consumer bureau is competing for talent and "we'll never be able to pay like the financial services industry pays."

In the first three months of 2011, some of the largest banks spent more than a $1 million apiece on lobbying Congress and federal agencies. The big spenders were Goldman Sachs (GS, Fortune 500), Wells Fargo (WFC, Fortune 500), JPMorgan Chase & Co. (JPM, Fortune 500), Barclays (BCS) and Citigroup (C, Fortune 500).

Right behind were Bank of America (BAC, Fortune 500), which spent $930,000, and Morgan Stanley (MS, Fortune 500), which spent $740,000 in the same period.

Geithner said that firms supporting efforts to block resources and appointments to federal agencies are "looking for leverage over the rules still being written."

He warned that the lobbying could have grave consequences and "create the conditions again" for a dynamic where "poorly-managed risk" causes another financial crisis.

The American Bankers Association didn't return a request for comment.

Timothy Geithner tells banks to accept new rules Mr Geithner was speaking at a conference in Atlanta, Georgia US Treasury Secretary Timothy Geithner has told US banks to accept new financial regulations instead of asking Congress to weaken them.

He criticised banking executives who are supporting Republican attempts stop the new laws being implemented.

He argued that big US banks should support the rules because it would be their foreign competitors who would benefit from any new loopholes.

Mr Geithner also criticised the UK's old "soft-touch" system of regulation.




Speaking at a banking conference in Atlanta, Georgia, he said: "The United Kingdom's experiment in a strategy of 'light touch' regulation to attract business to London from New York and Frankfurt ended tragically."

"That should be a cautionary note for other countries deciding whether to try to take advantage of the rise in standards in the United States."

The new banking regulations were passed last year, when the Democrats controlled both houses of Congress, in response to the banking crisis.

But recently Republicans and banking groups have been trying to find ways to delay or scale back the measures.

The reforms include tougher regulation of derivatives markets, forcing banks to hold more capital, and new rules for bankers' pay.

Mr Geithner also called for new global rules to govern the derivatives market.

Treasury Secretary Geithner and Fed Chairman Bernanke to Address International Monetary Conference in Atlanta
by Alex Ferreras on May 31, 2011 in Government News

(source: IMC) - WHO: International Monetary Conference

WHAT: Luncheon address, The Honorable Timothy F. Geithner, Secretary of the Treasury, June 6, 1:15 p.m. (Eastern Time)Address, The Honorable Ben Bernanke, Chairman, Board of Governors of The Federal Reserve System, June 7, 3:45 p.m. (Eastern Time)

WHERE: The Ritz-Carlton, Buckhead, Atlanta, Georgia

MANDATORY ON-SITE REGISTRATION: All media, including camera crews, must present press credentials at the IMC press room in the hotel–Envoy Room—to receive a press badge. Media without badges will not be admitted, with no exceptions.

NOTE FOR CAMERA CREWS ON SITE: Camera space is very limited, so please arrive early. For the Geithner address, camera crews will need to set up from 10:00-11:45, depart and return at 1:10 p.m. For the Bernanke address, camera crews will set up from 1:00-2:00.

CALL-IN INFORMATION FOR LISTEN-ONLY CONFERENCE CALLS:

Okay so any news on this it is past 3:45pm EST.