–Fed Chairman To Testify To Joint Economic Panel Wednesday At 10 ET
–Senate Banking Chief Dodd To Work Quietly To Firm Up Reg Bill
–Senate Banking Panel To Hear From HUD Secretary on Housing Thursday
–House Financial Services Panel To Hold Hearing On Housing Finance

By John Shaw

WASHINGTON (MNI) – Congress is returning from its spring recess
Monday with lawmakers intently focused on economic growth and
employment.

Federal Reserve Board Chairman Ben Bernanke will testify Wednesday
at 10 a.m. before the Joint Economic Committee on the U.S.’s economic
outlook.

The Fed chairman is likely to be asked about the strength of the
emerging recovery, future prospects for job growth, steps needed to
bring down the budget deficit and the impact of China’s undervalued
currency.

While Bernanke testifies in public, Senate Banking Committee
Chairman Chris Dodd is expected to spend the week quietly trying to
expand support in the Senate for his financial regulatory reform bill.

The Senate Banking panel approved Dodd’s bill several weeks ago on
a party-line 13 to 10 vote. All Democrats supported the bill and all
Republicans opposed it.

Sen. Richard Shelby, the ranking Republican on the Banking
Committee, said he has “a number of serious concerns” about Dodd’s bill.
But he vowed to work with Dodd and others as the bill moved to the
Senate floor in hopes of reaching a “broad consensus.”

Dodd has said that he is gearing up for a “full throated” Senate
debate on regulatory reform in April, but that debate is probably a week
or two away.

A spokeswoman for Dodd said the discussions at the staff level took
place over the two week spring recess.

Dodd’s legislation establishes a new independent Consumer
Protection Bureau at the Federal Reserve Board, creates a process to
liquidate failed financial firms,” sets up a council of regulators to
oversee systemic risk in the economy, establishes a regulatory structure
for over-the-counter derivatives, requires hedge funds that manage over
$100 million to register with the SEC and creates a new office within
Treasury to monitor the insurance industry.

Under Dodd’s bill, the Federal Reserve would oversee bank holding
companies with assets over $50 billion. Dodd’s bill also would require
the president of the New York Federal Reserve Board to be appointed by
the President of the U.S. and confirmed by the Senate.

Senate Majority Leader Harry Reid has said he wants the Senate to
pass a regulatory reform bill by the end of May.

President Obama has said that financial regulatory reform is one of
his chief goals for the rest of this legislative session.

Dodd’s Banking panel will hold a hearing Thursday at 9:30 a.m. on
housing issues with Shaun Donovan, the secretary of the Department of
Housing and Urban Development.

The House Financial Services Committee will hold a hearing on
housing finance issues on Wednesday at 9:30 a.m. No witnesses have been
announced yet for this hearing.

The Senate Finance Committee will hold a hearing on unemployment
insurance at 10 a.m. Wednesday.

The Senate is expected to spend most of this week working on
legislation to extend unemployment insurance benefits, national flood
insurance, COBRA health insurance subsidies and various other safety net
programs.

The Senate will vote Monday evening to end debate on the package,
but a final vote is not expected until later in the week.

The House is expected to take up a host of non-controversial bills
this week.

Senate Budget Committee Chairman Kent Conrad and House Budget
Committee Chairman John Spratt are expected to intensify work this week
on drafting a budget resolution for fiscal year 2011. That resolution
would set broad spending and revenue goals and make deficit estimates.

Budget law requires that Congress pass budget resolutions by April
15, but this often does not happen.

** Market News International Washington Bureau: 202-371-2121 **

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