U.S., Banks Agree on Foreclosure Pact – The Wall Street Journal

Government officials finalized a $26 billion agreement with five of the nation’s largest banks that could provide relief to nearly two million current and former American homeowners harmed by the bursting of the housing bubble. Covering Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co, this deal marks the largest government-industry settlement since a multistate deal with the tobacco industry in 1998. The deal is expected to help provide immediate benefits to around one million homeowners, as well as raise accountability for banks working with borrowers facing foreclosure. This agreement comes at a time when Congress doesn’t appear likely to approve new spending measures to tackle the current issues facing housing markets.

In This Congress, Even the Easy Bills Get Stuck – POLITICO

Gallup’s latest poll released on Wednesday revealed a new low congressional approval rating at 10%. This is no surprise as Congress is having a hard time agreeing on issues it already agrees on. Rep. Tom Rooney (R-FL) said, “The 112th Congress, we got some trade bills out, and that’s it. That’s going to be it until the election. Traditionally, people don’t like Congress, but like their congressman. Now we could lose the latter. We just look dumb when we can’t agree on simple things.” The partisan gridlock is increasingly apparent as new legislation is on the line, including the payroll tax holiday, the highway bill, and the insider-trading bill.

In 254-173 Vote, House Passes 'Expedited Line-Item Veto' Bill to Curb Spending – The Hill

The House approved the Expedited Legislative Line-Item Veto and Rescissions Act on Wednesday. The bill would allow Congress to quickly consider budget rescission recommendations made by the president. This bill split both parties with some Republicans saying the line-item veto would give too much power to the executive branch, while others said this will aid in Congress’ unwillingness to use its authority to cut spending. Though, members from both sides of the aisle agreed this bill could help reduce the budget deficit.

U.S. Solar Needs Innovation, Not Protection: Gerard Wynn – Reuters

A group of clean energy manufacturers asked the Commerce Department to impose duties on solar cells imported from China, citing subsidies from the Chinese government that allow Chinese manufacturers to sell below cost. Yet, tariffs will not necessarily help western companies out-compete Chinese manufacturers, and a better policy is to focus resources on fostering American innovation.

The Health of the Venture Capital Industry – Forbes

The venture capital industry is not doing as well as it did 15 to 20 years ago. Many people measure the industry’s health by the raw number of initial public offerings, but the number of positive exits is more telling of how the industry is doing. All venture capitalists would like the companies they invest in to have a positive exit, but the exits as a share of investments made five years earlier is still not at the levels from the 1990s. However, the industry has been consistent over the past few years with exits being about 15% of investments made five years earlier.

House Lawmakers Push for Additional Small Business Contracting Reforms – The Washington Post

House legislators introduced three bipartisan bills Wednesday to reform small business contracting. The Small Business Opportunity Act brings business advocates into procurement and acquisition planning earlier in the process; the Small Business Protection Act delivers more federal funding to small companies; and the Building Better Business Partnerships Act assists small businesses in connecting with mentors to help them secure government contracts.

In other news…

Greek Leaders Agree to New Cuts – AP News

Momentum Growing for Sales Taxes on Online Purchases – USA Today

North Dakota Oil Production Sets Another Record in December, Will Likely Pass CA and AK In Months – Carpe Diem

U.S. Futures Slightly Down – The Wall Street Journal

Study Finds Lack of Mobility Not Holding Back Employment – The Wall Street Journal

Congress Rating Drops to New Low – POLITICO

China January Exports Probably Fell, Commerce Minister Says - Bloomberg

M&T Rated Best in U.S. for Small Businesses – Buffalo News

The Next Wave In Renewable Energy From the Ocean - Forbes

Federally Backed Car Maker Hits Bump – The Wall Street Journal