Editor's Note: This is a monthly publication on economic trends and financial policy issues. In this publication you can read "The Longbrake Letter", an analysis of economic trends and conditions written by Bill Longbrake, as well as commentary on financial regulation and policy written by members of the law firm Barnett, Sivon & Natter, P.C., a Washington, DC based law firm that specializes in financial services law.

ISSUE: #03, July 2010

The Longbrake Letter
- Bill Longbrake
Hopes for a strong economic recovery are souring. Resistance to additional federal budget stimulus is building. In this month's letter Bill gives an update on key economic indicators, discusses the short-run and long-run consequences of government monetary, fiscal and regulatory policy decisions, and explores the problems plaguing the European Monetary Union and its future prospects.

What Happened to the FDIC?
- Bob Barnett
Through legislative changes and the agency's aggressive interpretation of the limits of its statutory authority, the environment around the FDIC has changed dramatically in the last few years. This is a quick review of those major changes and some questions they raise.

A Lawyer in Europe: A Review of the State of Financial Reform in the EU and UK
- Jim Sivon
Having attended meetings in Brussels and London with a delegation of bank and insurance executives, Jim Sivon provides a review of the status of financial reform in the EU and UK.

Risk Retention and Supply and Demand
- Bob Barnett
The risk retention requirements in Dodd-Frank will increase the cost of mortgages that are not exempt from the requirements. The immovable laws of supply and demand will result in loans being channeled into the exempted categories, leaving borrowers who cannot meet the qualifications for exemption to be left with higher priced loans or no loans at all.