Picking up where FinServ left off (see Client Report REFORM77), the House Committee on Oversight and Government Reform held a hearing today on the Eurozone crisis, with Treasury Secretary Geithner and Federal Reserve Chairman Bernanke fielding a range of questions on the Fed’s dollar swap lines, U.S. funding of the IMF and American exposures to Europe. As before, Republicans are wary of or opposed to both the IMF and the swap lines, while Democrats were generally more supportive of these international agreements and the Administration’s and FRB actions to date. Despite Chairman Issa’s (R-CA) stern instruction for Committee Members to focus exclusively on Europe’s debt crisis, questions were also raised about principal reduction, fiscal sustainability and the FRB’s CCAR stress test results (see Client Report STRESS12).
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