Thursday, May 07 2009

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Thursday, May 07, 2009

On the Trail of the TARP

Try to imagine tracking $700 billion dollars as it moves out the doors of the United States Treasury Department and into the coffers of America's biggest banks. That's essentially the charge of our guest, Elizabeth Warren. Warren, the Gottlieb Professor of Law at Harvard University, is the Chairwoman of the Congressional Oversight Panel, which watches where the TARP money goes. When President Obama talks about transparency, she's the one who helps make it happen. She joins The Takeaway in advance of a new TARP report due out today.

For more from Elizabeth Warren, click here for her interview on personal finance

Which banks will need more money? See our report card

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Squeezed for Credit

Elizabeth Warren, Chairwoman of the Congressional Oversight Panel on TARP and professor at Harvard Law School, continues her conversation with The Takeaway. Before she was monitoring government expenditure, she wrote several books on personal finance including, All Your Worth: The Ultimate Lifetime Money Plan. So before she left we wanted to get her take on personal finance and how the nation's families are affected by tight credit markets.
"At the end of the day, today's two-income family has less money left over after those five basic expenses than the one-income family had a generation ago."
—Congressional oversight panel Chairwoman Elizabeth Warren on the economic state of American families

Click here to hear Elizabeth Warren's discussion of TARP and her role overseeing the multi-trillion dollar fund.

To read an excerpt from Elizabeth Warren's book, All Your Worth: The Ultimate Lifetime Money Plan, click here.

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A Refugee Crisis Unfolds in Pakistan

The Pakistani government began a large air and ground assault yesterday, launching attacks against close to 7,000 Taliban militants in the Swat Valley. The fighting came just hours ahead of meetings between President Barack Obama and Pakistani President Asif Ali Zardari in Washington to explore ways to boost Islamabad's fight against terror. Now, close to 40,000 Pakistanis are fleeing the battles unfolding in Pakistan's Swat Valley and areas surrounding the Pakistani capital. The mass exodus may spark the biggest refugee crisis Pakistan has ever seen, particularly as reports come in saying the Taliban is blocking exits routes to try to keep civilians in place. Joining The Takeaway from Islamabad is Mark Dummet of the BBC who is covering the refugee situation. Also joining the conversation is Ron Redmond, the chief spokesperson for the UN High Commissioner for Refugees in Geneva, Switzerland.

For more, read Dexter Filkins' article, Pakistan Strife Fills a Hospital With Refugees, in today's New York Times.

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Stress-Test Results: How Did the Big Banks Do?

Report cards on the nation's 19 biggest banks will be released later today, but not all of the banks will be getting gold stars. While the results of the government-ordered stress tests are still to be released, early news of the results have been trickling out for days. The early leaks suggest that Bank of America will need $33.9 billion in additional capital. In fact, many of the banks tested need more money. But, this doesn't mean another multi-billion dollar bailout is looming. So if the additional funds don't come from the government, where will they come from? Eric Dash is following this story for our partners the New York Times and he joins The Takeaway with a report.

For more, read Eric Dash's and Louise Story's article, As Stress Tests Are Revealed, Markets Sense a Turning Point, in the New York Times.

Which banks will need more money? See our report card

Want to keep an eye on your stocks? Watch the market here.

Want to watch how the big 19 are doing in the market?
J.P. Morgan Chase & Co.
Citigroup Inc.
Bank of America Corporation
Wells Fargo & Co.
Goldman Sachs Group, Inc.
Morgan Stanley
Metlife, Inc.
PNC Financial Services
U.S. Bancorp
The Bank of New York Mellon Corporation
SunTrust Banks, Inc.
State Street Corporation
Capital One Financial Corp.
BB&T Corp.
Regions Financial Corp.
American Express Co.
Fifth Third Bancorp
Keycorp
GMAC LLC
Still want more? Here is related coverage from The Takeaway.
And here is Pro Publica's investigation into the stress tests.

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Pakistan Takes on the Taliban

Yesterday, Pakistan's President Asif Ali Zardari met with President Barack Obama and Afghani President Hamid Karzai at the White House, determined to convey his commitment to fighting the Taliban and terrorism. Today President Zardari appeared to deliver on his promise. Pakistan began large-scale attacks against Taliban militants in the Swat Valley and the area surrounding Islamabad. Tens of thousands of people are fleeing the region to escape the conflict.

To discuss the implications of Zardari's stand, joining The Takeaway is Sherry Rehman, the former Information Minister under Pakistan's President Asif Ali Zardari and Mira Kamdar, Senior Fellow at the World Policy Institute, Associate Fellow of the Asia Society, and author of Planet India: the Turbulent Rise of The Largest Democracy and the Future of Our World.

In case you missed President Obama's remarks after his meeting with Afghan President Hamid Karzai and Pakistani President Asif Ali Zardari, here they are:

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Warp Speed Ahead!

Geek alert! The new Star Trek film opens this weekend. So we're wondering: are we even close to developing the technology we see in films like Star Trek? Are we ever going to be able to travel at warp speed or beam ourselves to work or, better, Hawaii? And if the Cylons attack, are we going to be able to live in space? From Jules Verne's novels inspiring the development of submarines and the Starship Enterprise spurring the development of the flip phone, science fiction has offered ideas for new technologies. Marc Millis is the former head of NASA’s Breakthrough Propulsion Physics Project, and is the closest we could find to our own Scotty. He joins The Takeaway with a look at the science of the future.

Watch the trailer here:

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India: Voting in the World's Biggest Democracy

Polling stations are open today in India's marathon five-phase election where millions of voters in 85 constituencies across seven states and in Delhi are expected to cast their ballots today to help elect a new government. The main political fight is between the ruling Congress coalition and BJP-led parties. Neither party is expected to win by a clear margin (and the votes won't be counted until May 16), so the jockeying is just beginning. To help us understand the importance of this complicated election is Mira Kamdar, Senior Fellow at the World Policy Institute, Associate Fellow of the Asia Society, and author of Planet India: the Turbulent Rise of The Largest Democracy and the Future of Our World.
"The poorer you are, the more likely you are to vote. And for the poor in India, 46 percent are still living, according to the World Bank, on less than $1.25 a day, it's about food, it's about jobs, it's about housing, it's about education for their children."
—Mira Kamdar of the World Policy Institute on elections in India

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In Britain, a Fight Over DNA and Civil Rights

Criminal justice systems in a number of countries are expanding advanced DNA databases to keep track not only of convicted criminals, but also of people only accused of crimes. But Britain announced today that it plans to scale back its national DNA database. This move follows a ruling by the European Court of Human Rights last year criticizing Britain’s practice of keeping on file the DNA anyone who’d been arrested, even if they weren’t charged with a crime. For more we turn to Naomi Grimley, the BBC's political affairs correspondent.

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A Very Public Affair: Elizabeth Edwards Talks

There's a discussion that’s happening around a lot of watercoolers in America today: Elizabeth Edwards is finally going public about her husband's infidelity. In advance of her new book, Resilience, the wife of former Senator and former presidential candidate John Edwards sits down with Oprah Winfrey today to discuss her husband’s affair. Are politicians more likely to cheat than other men? And why do their wives stay with them? The Takeaway talks to Gail Sheehy, author of Hillary’s Choice and contributing editor of Vanity Fair, about the enduring fascination with political scandal and public marriages.

Oprah's interview with Elizabeth Edwards airs today, but here's an AP report to tide you over:

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