OVERNIGHT MONEY: Global leaders head to Camp David for heady talks

British Prime Minister Winston Churchill and President Franklin Delano Roosevelt met there in 1943 and discussed plans to invade Normandy. That went pretty well for the Allies. 

During President Carter's administration Egypt and Israel signed off on a peace treaty.

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So maybe Camp David has some magic that will help leaders forge ahead on the European debt crisis and even give Obama what he wants: a clearer path to reelection, led by a more robust economic recovery. 

The president’s reelection chances are linked to the pace of the economic recovery as presumptive GOP nominee Mitt Romney zeroes in on Obama's record.

But before the meetings at Camp David, the president will begin his day delivering the keynote address at the Chicago Council on Global Affairs' Global Agricultural Development Initiative in Washington as foreign leaders make their way to Washington.

The European debt crisis has remained a thorn in the side of the U.S. economic recovery for more than a year — causing major problems last summer on growth — and recent tumultuous elections haven't exactly lent a hand. 

France's new president, François Hollande, will make his first trip to Washington not long after his victory over Nicolas Sarkozy, while Greece weighs whether to stay in the European Union or go back to the drachma.

“The economic situation in the eurozone is going to be at the top of the agenda,” said Thomas Donilon, the president’s national security adviser, on the summit. “This comes at a very delicate time with respect to the European economy.”

Earlier this month, Greek voters threw their support behind parties that opposed the tough bailout agreement hammered out by the two parties that previously ran the coalition government. 

Now, with the government in disarray, a fresh election has been called for June 17, with many viewing Greece’s existence in the EU at stake.

On Thursday, Fitch Ratings downgraded Greece, citing the “heightened risk” that the nation might not be able to remain a member of Europe’s monetary union. 

If the new elections fail to produce a government that can meet the austerity plan mandated by European officials and the International Monetary Fund, Greece’s exit is “probable,” according to the credit rater.

Greece's departure could throw financial markets into turmoil.

Christine Lagarde, managing director of the IMF, told a Dutch public television station that a Greek departure would be “extremely expensive, and not just in Greece.”

Greece’s exit would throw into question the overall stability of the eurozone. 

Donilon said the United States has an “extraordinarily significant stake” in Europe’s management of the economic crisis, and that Obama looks forward to “leading the discussion” with global leaders at the weekend’s meeting.

“It’s important for them to agree on the common goal, which has to be, has to be to preserve the foundation of the eurozone,” he said.

Following the G-8 meeting, the president next moves on to Chicago, where he will meet with global leaders at a NATO summit, which is likely to focus on the end of the war in Afghanistan.

Donilon said the Obama administration has estimated it will cost $4 billion a year to fund the Afghan security force, so the United States wants a little help from its global partners to cover the cost. 

Obama and Afghan President Hamid Karzai are planning to meet on Sunday ahead of the NATO summit.

Maybe those quiet paths of Camp David can spur a solution.


WHAT ELSE TO WATCH FOR

Digging into Dodd-Frank: A House Financial Services subcommittee will spend Friday morning discussing the Wall Street overhaul known as Dodd-Frank. The particular piece of the law set for dissection is how heightened capital requirements for financial institutions function in the real world. A bank executive and regulator are slated to testify.

Farm bill considerations: The House Agriculture subcommittee on Conservation, Energy and Forestry will hold a hearing on energy and forestry programs that include a broad range of industry representatives from biotechnology, biodiesel, loggers and foresters. 

Spending time: The House Appropriations Committee will mark up legislation on Friday that would cut $34 million from Legislative Branch agencies for fiscal 2013. The proposal is the latest belt-tightening move by House Republicans, who have looked to trim costs around the Capitol since assuming the majority. Appropriators said spending on House operations has dropped 10.5 percent since January 2011.

More Korean trade: The Korean Cultural Center will hold a discussion on Friday about South Korea opening up to free trade with Y.J. Choi, Republic of Korea Ambassador to the United States. 


LOOSE CHANGE

Owning a stake: Personal financial disclosure forms filed by all members of Congress for 2010 show that 15 Democrats and 23 Republicans owned shares in JPMorgan Chase worth a total of between $2.1 million and $3.8 million, according to OpenSecrets.org. 

When Wall Street giant JPMorgan Chase announced this week that it had lost an estimated $2 billion, now upped to $3 billion, on risky trades, Republican and Democratic members of Congress rushed to make their political cases: either this was something that more regulation couldn't have prevented, or this was exactly what stronger government rules could have thwarted.

None of them, however, mentioned whether they had a financial stake in JPMorgan Chase.

The single biggest congressional shareholder in the company at that point was Sen. Frank Lautenberg (D-N.J.), who reported owning at least $1 million in JPMorgan stock. Of course, for Lautenberg, who is listed as the fifth-richest senator with an estimated personal net worth of between $55 million and $116 million, the bank was just one of 190 assets he listed.


BREAKING NEWS 

Blocked shot: Senate Majority Leader Harry Reid (D-Nev.) took a shot at passing an Iran sanctions bill by unanimous consent on Thursday but Republicans blocked its package, saying they want stronger language in the bill. 

Several Republicans argued on the floor that adding a "use of force" provision reflects President Obama's policy that all options are on the table when it comes to Iran exploring nuclear weapons capability, and a provision must be included along with the economic sanctions.

Sen. Lindsey Graham (R-S.C.) said adding the language would "send an appropriate" signal to Iran but would not be intended to green-light military action — only to restate U.S. policy. 

Time to testify: JPMorgan Chase Chairman Jamie Dimon will testify before the Senate Banking Committee on his bank's multibillion-dollar trading loss ... soonish. The hearing is yet to be scheduled, but the head of the nation's largest bank agreed to testify after Senate Banking Committee Chairman Tim Johnson (D-S.D.) said he planned to invite him to Capitol Hill to discuss the firm's bad bet.

Here come the tariffs: The Obama administration will impose hefty tariffs on Chinese solar imports after determining Thursday that the country is flooding the market with underpriced panels. The Commerce Department, in a preliminary determination, ordered U.S. Customs and Border Protection to impose tariffs of between 31 and 250 percent on solar imports from various Chinese companies.


ECONOMIC INDICATORS

Employment Statistics: The Labor Department will release its April figures on regional and state employment and unemployment.


WHAT YOU MIGHT HAVE MISSED

— Senate confirms nominees to Federal Reserve Board
— House panel OKs $608B defense bill
— US pledges additional $70M for Israel's Iron Dome missile defense
— GOP senator calls on Boehner to do what the Senate won't on debt
— Boehner says Dems are only ones talking about brinkmanship on debt
Pelosi says Boehner’s stance on debt-ceiling hike ‘immature’ and ‘irresponsible’
— GOP tax-writer could settle on tax reform process by August
— House panel approves State funding bill with anti-abortion language
Energy bills stalled until fiscal ‘grand bargain’ is struck
— First-time jobless claims unchanged last week

USPS to close processing centers this summer

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