(Reuters) – The U.S. Federal Deposit Insurance Corp is questioning the positive conclusions given to Citigroup Inc’s management team in a government-mandated review in the aftermath of the financial crisis, the Wall Street Journal said, citing people familiar with the situation. The report said some FDIC officials were questioning the rigor of the report, based partly on interviews of Citi’s executives who rated the effectiveness of their colleagues.

Reporting from Washington – In the wake of the mortgage meltdown, the Federal Housing Administration has emerged as a pillar of the still wobbly housing market — providing vital insurance that enables borrowers to qualify for loans with as little as 3.5% down. This year alone the agency has backed nearly 2 million mortgages worth at least $328 billion.

Legislation by Representative Barney Frank to tighten derivatives regulation contains an exemption that may let most financial firms escape new collateral and disclosure rules, the head of the Commodity Futures Trading Commission said. Bloomberg News It’s time to watch Wall Street flex its political muscle. The financial magicians do not want the government to regulate the fantasy finance securities that were instrumental in our crash – specialty derivatives

Earmark watchdog Taxpayers for Common Sense is barking : The 18 members of the Senate Appropriations Subcommittee on Defense will bring home 60 percent of the $2.7 billion worth of earmarks in their version of the 2010 spending bill. The takeaway: campaign contributions pay off.

WASHINGTON — The Obama administration’s effort to help homeowners avoid foreclosure may not achieve its goal of helping 3 million to 4 million borrowers and may simply delay mortgage defaults for many, a government watchdog group says. The Congressional Oversight Panel, charged with making regular assessments of the $700 billion financial rescue fund enacted last year, said the Treasury Department should consider whether to improve the current $50 billion program or adopt new programs to meet an expected rise in foreclosures fed by increased unemployment. The panel’s report is scheduled to be made public Friday.

The worst recession since the Great Depression has left a scorched landscape that will weigh on the labor market and the broader economy for years to come, according to economists in the latest Wall Street Journal forecasting survey.

A top U.S. labor group on Thursday asked the Obama administration’s “pay czar” to stop any retirement payments to Bank of America Chief Executive Ken Lewis.