Understanding Capitol Hill and the TARP Votes

Once the House votes on House Financial Services Cmte. Chairman Rep. Barney Frank's (D-MA) TARP, you'll see lots of headlines about how it will modify TARP. There'll be new reporting requirements, executive compensation provisions, etc. What we want to note is that, just because it passes the House, doesn't mean it is going to pass the Senate. We hear that Republican Senators are already cautioning that they want further assurances on how the second half of the TARP funds ($350 billion) will get spent.

Here's why you care: This means a longer process than just a green light from the House. In other words, there's still miles to go before we're done. It makes less likely President-elect Obama has something to sign on Tuesday when he gets sworn in. We suspect the financial markets would like to see something sooner rather than later, but we also know the financial markets really want clarity.

Editor's Note: You've likely read that Treasury Secy. Nominee Geithner's confirmation hearing has been pushed back from this Friday, 1/16. We wanted to make sure you kept your calendars current. Additionally, we note that JP Morgan Chase will report earnings tomorrow, Thursday 1/15, and not next Wednesday 1/21. Lastly, Citi will report earnings early this Friday, 1/16.