DiscussionDIVAS

The stress test

You’re going to be hearing a lot about “the stress tests” during the next week, so we’re explaining why.

First off, the stress tests are an analysis conducted by the government on how healthy the nation’s 19 largest banks would be if the economy worsened. The banks under review received TARP (Troubled Asset Relief Program) funds last year, in some cases up to $45 billion.

 

What’s happening?
On Friday the government will release details of the test methods used, and will reveal preliminary findings to each bank privately. Final, public results are expected on May 4.

Why are the stress tests so important?

The government says the stress tests will help determine: 1) if it’s ok for the banks to pay back the TARP money, or, 2) which banks may need more money to stay afloat. The banks will have until Tuesday to dispute the results.

The test results are important to the banks, some of whom would like to unload their TARP funds. Holding on to government money subjects them to potential restrictions on compensation and bonuses—something most banks want control of themselves. If the results reveal weakness, some worry that the government, which has shown a willingness to take shares in the banks, could require management changes like they did at General Motors.

The results will also likely be important to the markets, which are looking for signs of recovery in the financial sector.

How are the banks doing?

In the last two weeks several major banks reported that they made money in the first quarter of this year, giving some reason to feel encouraged that the industry is making headway toward stabilizing and pulling itself out of this quagmire.

The big picture

The stress tests are cause for stress between Washington and Wall Street. Banks want their autonomy and the government wants to ensure that the economy doesn’t collapse. Washington wants to know that there’s enough money at banks to keep loans flowing and avoid another freeze-up. But by refusing to take back TARP funds they maintain some power over the banks. You can bank on a battle once the results are released.

So..........we're twittering! We're posting links to interesting stories everyday on Twitter so you can keep up with us and the news through the week: www.twitter.com/discussiondivas

Women at risk

Like President Obama, we've been minding domestic affairs at the WeeklyDIVA while checking in on different parts of the world. Of course outside of the new dog Bo at the White House, the big domestic news this week was again mainly focused on the economy. 

Otherwise, much of Obama's focus lately has been on international affairs, to include handling the recent hostage situation with modern-day pirates on the seas off of Somalia, while also making appearances around the world. 

This week he traveled to Mexico where he urged the U.S. Senate to pass a stalled gun-trafficking treatythat could help stem border violence, and then headed to the Summit of the Americas, where 34 Western states (largely in North and South America) will meet to talk about global and economic issues on the tiny island of Trinidad and Tobago off the coast of Venezuela. U.S.-Cuba relations are expected to be a center focus at this meeting. (Keep up with the meeting here.)

Staying on foreign affairs, there are a number of recent happenings affecting women in the Middle East, and that's where we're focusing this DIVA. 

“We want our rights!”

We'll start in Afghanistan, where women marched this week demanding their rights and denouncing a new law that was signed recently by President Hamid Karzai that made it illegal for Shiite women to deny sex to her husband at least once every four days, or leave the house without his permission, among other things. The UN called it legalized rape and after much international pressures, good news: Karzai says thelaw will be repealed. 

Sharia law

Meanwhile, in neighboring Pakistan, the video of apublic flogging of a 17-year-old girl by the Taliban has brought to light the horrific treatment women often face there and ignited public outrage over the situation. The Supreme Court there is investigating the incident, which took place in a region where the nation's president recently agreed to allow Sharia law, or traditional Islamic law, to exist in an effort to bring peace with the Taliban—a decision he’s been criticized for.

You can read more about Sharia law here, but it is essentially a strict legal code that provides for harsh repercussions for breaking the law (i.e., adultery), and women must be accompanied by a male relative at all times, fully covered, and aren't treated equally to men in many ways.

Another female journalist in jail

Finally, in a very different situation, but in a country where women's rights are also limited, a female Iranian-American journalist has been charged and tried with espionage. She's 31 years old, grew up in North Dakota, and worked for the BBC and NPR among other news organizations. She was originally picked up for buying wine earlier this year. 

While a verdict is still to come, her trial comes during a key point in U.S.-Iran relations and there’s concern because she's being held at Evin prison where several detained journalists and bloggers have died, including a Canadian woman who was beaten to death in the prison.

And lastly, as we've written about before, North Korea is still holding two female Current TV journalists and plans to try them.

We'll wrap it up there for this week. See you next Friday.

 

Coming soon! We'll be debuting our first book reviews in the next week or so--we have two great summer reads for you!

New beginnings: Obamas mark Passover and Easter

On Thursday night the non-Jewish Obamas hosted what is thought to be the first Passover Seder dinner ever held at the White House. On Monday they will host the traditional White House Easter egg roll, one day after celebrating Easter. Between the two events they will have marked two very important holidays for two different religions, very publicly. Religion and the public life of politicians is always at issue, and seemingly much more intertwined in the United States than it is in Western Europe and many other developed nations. It’s no different for President Obama, who fought off whispers on the campaign trail that he is Muslim, who offended many supporters with his choice of the evangelical minister Rick Warren to deliver the prayer at his inauguration, and whose religious and non-religious beliefs are cause for headlines today.

A sampling of latest headlines on Obama and religion
Beyond following where the Obamas will celebrate Easter and hosting the Seder dinner, news networks are monitoring the Obamas search for a permanent church to worship in while living in Washington. They are said to have friends trying out different churches in the city.

Meanwhile, his pro-choice stance on abortion and support of stem-cell research is rattling some at the University of Notre Dame, where he is to give the commencement speech this spring. The Catholic Bishop whose territory includes Notre Dame won’t attend graduation in protest, some students are holding rallies on campus to show their disapproval of the invitation, and some alums have been critical. At the same time, he also has supporters on the campus and around the country.

Separately, speaking in Turkey earlier this week, Obama made it clear that the U.S. seeks a new and different relationship with the Muslim world, one based “upon mutual interest and mutual respect,” he said. In an important moment, he reminded the Turkish Parliament that some of his relatives are Muslim, drawing applause.

The big picture
Religion is one of those topics where it’s difficult to win—nobody will ever agree. And because religious life is so public with politicians in America, it often drives a lot of headlines. Interestingly, a recent survey says many Americans are feeling less religious. The number of people claiming no religion almost doubled to 15% between 1990 and 2008. Regardless, what Obama’s message seems to be is that it’s important to keep the dialogue open despite differences. By celebrating both the recent holidays, he seems again to underscore that message.

Have a good week!

Worldly thoughts: G20, climate talks, Arab Summit

From talks about climate change to the global financial crisis, there was a world of big events this week, quite literally. Here’s a quick wrap of the big ones and the key takeaways from each:

Climate Change Talks in Bonn, Germany

About 2,000 representatives from around the world gathered in Bonn, Germany to discuss global climate talks. Think of this as the meeting before the meeting before the meeting to decide how much is too much when it comes to global emissions. It’s a preparation meeting for another one at the end of the year—the United Nations Climate Change Conference in Copenhagen, Denmark, where the international community aims to establish a global climate treaty.

 

Key takeaway: This meeting marks the return of the United States to the negotiating table on global emissions. The existing agreement—the Kyoto Protocol—was signed in 1997 but the U.S. ultimately refused to accept its terms because of a lack of mandatory emission levels placed on developing countries like China and India, among other issues, which essentially stalled talks.

The Obama team is now full steam ahead on reaching an agreement with the international community, and later this month will host talks with the top 17 economies that produce 80% of the world’s emissions. Their hope is to breathe new life into the negotiations and ultimately craft a new treaty at Copenhagen that reaches beyond emission levels and trading to increase the supply of clean energy, create financial incentives, and help fund technologies for developing countries.

Arab League Summit in Doha, Qatar

Keeping track of who's who and what's what at the Arab Summit in Doha, Qatar this week proved complicated: Iran's President was kept away so that Saudi Arabia would attend; Egypt’s president did not attend because of differences over Qatar's stance in the latest Israeli/Palestinian conflict (Qatar sided with the Palestinians, Egypt sided with Israel); and Syria's president talked of wanting peace with Israel while at the same time urging militants to keep up the resistance.

Key takeaway: The meeting of these oil-rich nations yielded little news as it was cut short from three days to one. The main outcome was a vote of solidarity for Sudanese President Omar al-Bashir who is wanted by the International War Crimes court for crimes against humanity in Darfur. Basically, the vote is a message to the global community that they consider the ICC to be meddling in affairs. Sudan has kicked out all aid groups from the country since the warrant was issued.

The G20 in London, England

Aside from all the protests against capitalism ahead of the G20 meeting, and the hubub surrounding Michelle Obama’s fashion choices and touching the Queen, the main ideas from the Group of 20 meeting addressed the global economic crisis.

Key takeaways:

1. More money for loans for poorer countries

Group of 20 members will make contributions to bring the International Monetary Fund’s coffers to over $1 trillion, giving it more room to lend money to countries suffering in the downturn. (Background: The IMF was created in 1944 as an international financial facilitator, helping to stabilize currency exchanges and to serve as a lender of last resort for countries needing money. Its 185 members fund it.)

With many of the world’s bigger economies suffering, their decreased buying power is taking a toll on smaller economies that rely heavily on them. The hope is that the IMF can fill in some holes.

2. More money to promote global trade

An additional $250 billion was set aside to finance trade around the world.

3. More regulations on financial institutions

The G20 came together on new rules for regulating hedge funds and lifting the veil of secrecy around tax shelters. 

And that’s a wrap! We’ll see you next week.