Sovereign Risk a Growing Threat to Financial System - The sharp rise in government debt during the economic crisis from already elevated levels is creating what the IMF says is the newest threat to the financial system: growing sovereign risk.  Highlights from the IMF’s latest Global Financial Stability Report: (has 4) … The report cut its estimates of writedowns … that banks … will have to take during the period 2007 to 2010 from $2.8 trillion last October to $2.3 trillion (see table). Banks already have written off about $1.5 trillion of the $2.3 trillion, the IMF estimates. ... - Research Recap
————

Morgenson: This Bailout Is a Bargain? Think Again - (what the numbers DON’T show) - NY Times

Lehman Examiner to Testify That S.E.C. Sat on Its Hands - By SEWELL CHAN - The court-appointed examiner who dissected the Lehman Brothers bankruptcy is expected to criticize the Securities and Exchange Commission on Tuesday for its decision to “stand by idly” as the investment bank veered toward collapse.  The S.E.C. knew that Lehman did not have adequate liquidity but in essence did nothing, the examiner, Anton R. Valukas, says in prepared testimony released in advance by the House Financial Services Committee. - NY Times

————

The Era of Light Touch Is Over: Rep. Frank- By: Barbara Stcherbatcheff - The societal benefits of obscure financial products are negligible, and regulation of the financial industry won’t hamper US competitiveness, House Banking Committee Chairman Barney Frank told CNBC Monday.  … Democratic leaders want to bring a massive financial reform bill to the Senate floor for a vote as early as this week. To put further force behind the measure, President Barack Obama will be traveling to New York on Thursday to discuss financial reform. … - CNBC

————

Obama and Democrats challenge GOP on Wall Street - Jim Puzzanghera and Janet Hook - ‘Whose side are you on?’ Sen. Christopher Dodd says as Democrats try to frame the vote on financial rules as a choice between Wall Street and Main Street. - LA Times Business

————

Fox Business Expands Suit Against Federal Reserve - By Adam Shapiro - FOX Business Network has expanded its quest for documents from the Federal Reserve in order to shed light on which financial firms borrowed funds during the financial crisis.  - Fox Business