Recently, a small but positive step was made toward possible ratification of the long-overdue United States-Korea Free Trade Agreement (KORUS FTA) as U.S. Trade Representative Ron Kirk announced that the United States is preparing for talks with South Korea Trade Minister Kim Jong-Hoon. Ratification of the agreement, which was signed by the United States and the Republic of Korea on June, 30, 2007, is critical for the United States for both economic and geopolitical reasons.

At his Monday meeting with the CEO’s of 12 of the country’s largest banks, President Obama challenged the bankers to explore every responsible way to increase lending.  “I urged these institutions here today to go back and take a third and fourth look at how they are operating when it comes to small business and medium-sized business lending,” he said.

This week, the House of Representatives will consider The Wall Street Reform and Consumer Protection Act (press release), the first major piece of financial regulatory reform legislation in a decade.  The bill includes provisions to address a number of critical issues, such as the stability of the U.S. financial system, ending “too big to fail” by establishing resolution authority for complex financial institutions, the regulation of over-the-counter derivatives, and enhanced consumer protections.

Federal Reserve Chairman Ben Bernanke, who faces what will most likely be a contentious re-confirmation hearing this morning, will no doubt be confronted with questions regarding the recent financial crisis, and what role the Fed, in its capacity as supervisor of large financial institutions, played in that crisis.