Small Business & Entrepreneurship Council President and CEO Karen Kerrigan on Tuesday urged Democratic leaders to stop pushing for passage of the small-business lending bill because it does not address the underlying reasons for why small-business expansion has stalled.

New York-based Citigroup expects to hire upwards of 12,000 people in China over the next three years, where banks provided a record $1.4 trillion in new loans in 2009. 

Citigroup is nearly tripling its workforce to compete with two other banking giants — HSBC Holdings and Standard Chartered Bank — in the world's fastest-growing economy, according to a Bloomberg story on Tuesday. 

Citigroup has 4,500 employees in China and 50,000 throughout Asia. 

The company saw a 46 percent increase in revenue in 2008 in China, posting a profit of $191 million. The country hasn't released 2009 earnings for the country. 

An overwhelming majority of likely voters (75 percent) say Congress should cut its own pay until the federal budget is balanced, according to a new Rasmussen Reports survey. 

President Obama is expected to use his speech on Iraq for just that — Iraq. 

Despite the economy looking as if it could backslide into a recession, Obama will use tonight's address to mark the end of U.S. combat missions in Iraq. 

Jason Furman, the deputy director of President Obama's National Economic Council, on Tuesday warned that a one-year extension of Bush-era tax cuts benefiting the wealthy could be the first step in making them permanent. 

The conservative Hudson Institute on Tuesday released a report condemning some union-back pensions as being "Ponzi schemes" because a dwindling number of union members are paying into the plans while a growing number of retirees rely on the funds to meet everyday expenses. 

Consumer confidence increased more than expected in August, making a modest improvement that reflects broad concern about the lack of job growth in the economy. 

The Conference Board, a private research group, released a report Tuesday showing the index rose to 53.5 in August from a revised 51 in July, a five-month low, on par with expectations a year ago. 

Confidence in present conditions dropped to 24.9, from 26.4 last month, the lowest level since February. Meanwhile, consumers showed more positive expectations for the next six months with the gauge increasing to 72.5 in August from 67.5 in July. 

"Consumers’ expectations improved moderately in August, but overall, they remain pessimistic," the report said. 

Bank earnings roared back in the second quarter of this year, posting a $26 billion gain over the same period last year.

The Federal Deposit Insurance Corporation (FDIC) reported Tuesday that banks posted $21.6 billion in earnings in the second quarter of 2010 compared with a net loss of $4.4 billion in the same period last year.

"This is the best quarterly profit for the banking sector in almost three years," said FDIC Chairman Sheila Bair in a statement. "Nearly two out of every three banks are reporting better year-over-year earnings. As long as economic conditions remain supportive, most institutions should maintain profitability and increase their capacity to lend."

Earnings are at their highest since the third quarter of 2007, although they remain below historical standards.

Still, the number of banks on the "problem list" grew from 775 to 829. 

The boost in earnings for the banking industry comes amid strong signs that the broader economy is weakening. Unemployment remains at near double-digit levels. The Commerce Department said last week that the economy grew at a 1.6 percent annual rate in the second quarter, which was slower than the 2.4 percent rate that was initially estimated.

The housing market remains weak, with steep declines in the sale of existing and new homes. Housing and Urban Development Secretary Shaun Donovan said Sunday on CNN that the administration is "concerned" about the industry and is looking at ways to boost the housing market.

Genzyme Corp. this week snubbed an $18.5 billion buyout bid by Sanofi-Aventis, arguing that the offer grossly undervalues the Cambridge, Mass.-based biotech company — one of the largest in the world.

“The Genzyme board is not prepared to engage in merger negotiations with Sanofi based upon an opportunistic proposal with an unrealistic starting price that dramatically undervalues our company," Genzyme CEO Henri Termeer wrote to Sanofi Monday.

The $18.5 billion offer breaks down to about $69 per share. Citibank analysts estimate that Sanofi-Aventis would have to hike its offer to as high as $77 per share to entice Genzyme shareholders to support the deal, Bloomberg reported Tuesday. 

—Cross-posted from Healthwatch.