Europe's Economic Recovery Dependent On Banks

Now that most European banks have passed their stress tests, they still face a stiffer challenge in the coming months, the ability to raise billions of dollars of long-term funding to finance new lending. 

Europe’s economic recovery may be at stake if banks are not able to pull off their long-term goal. Unlike the situation in the U.S., a large majority of companies in Europe depend on banks for their finances. Unless the banks can tempt investors in the bond markets, they won’t be able to make long-term loans to allow businesses to finance investment.

Reid To Introduce Limited Energy Bill

Senate Majority Leader Harry Reid (D-Nev.) has just announced that he will be holding a press conference with Sen. John Kerry (D-Mass.) and other Senate Democrats later this afternoon. However, if you’re a supporter of comprehensive climate legislation, don’t get too excited. Reid likely will announce that he will be bringing a package that will contain a series of oil spill response proposals and moderate energy provisions that are expected to draw bipartisan support.

The Hill is reporting that the bill will not include any mandates on renewable energy production, and it is certain that the package will not feature any sort of proposal to place a cap on emissions. For now, it looks like Reid won’t be able to address broad climate legislation until after the August recess…

House To Vote On Extenders Today

The House will hold an hour of debate on a bill to extend unemployment benefits, and will then vote on it later this afternoon. The bill, which the Senate passed earlier this week, is expected to pass easily through the lower chamber. It’s expected that the President will sign the bill into law before the end of the week…

Lugar Becomes Second GOP'er To Support Kagan

The Associated Press is reporting that Sen. Dick Lugar (R-Ind.) has said he will vote to confirm Supreme Court nominee Elena Kagan.

“I have concluded that Solicitor General Elena Kagan is clearly qualified to serve on the Supreme Court and that she has demonstrated a comprehensive knowledge of court history and decisions,” Lugar said.

The Indiana Republican becomes the second member of the party to support Kagan. Earlier this week, Lindsey Graham (R-S.C.) said he would vote ‘yes’ on Kagan.

Franken Defends Not Using Stimulus Money To Fund Unemployment Extenders

Sen. Al Franken (D-Minn.) told reporters Tuesday that using unobligated Recovery Act funds to pay for an unemployement benefits extension is a bad idea, and would prevent Congress from creating economic stimulus elsewhere.

“That reduces the other money that’s there for stimulus,” he said. “Traditionally, unemployment insurance has always been not paid for.”