Extra Credit, Wednesday Edition

Geithner to Propose Vast Expansion Of U.S. Oversight of Financial System: The Fed and the FDIC would seem to be the biggest winners here.

Gilt auction fails for the first time since 2002: A worrying datapoint, it'll become scary if this happens more often.

Dear A.I.G., I Quit! An AIGFP executive's resignation letter. Since he wasn't directly involved in the CDS game, he reckons he's being unfairly attacked.

Tough-Talking BofA Analyst Yesterday, Gone Today: Merrill's Richard Bernstein didn't last long at Bank of America.

Watch those baskets: Why Citigroup should be allowed to merge with Wells Fargo: Hempton wants to give all banks a license to print money. Maybe he should look at Scotland, where they literally have that right.

Modeling an FDIC Robbery: A wonderfully clear-yet-geeky post on the bank bailout plan, with charts. Says Mike: "the Greenspan put was always a metaphor - the Geithner Put is an actual put option." From the excellent Rortybomb blog, which I can't believe I haven't seen until now. Thanks to Nemo for the pointer.

Geithner Affirms Dollar After Remarks Send It Tumbling: It's like a rite of passage for any new Treasury secretary: the inadvertent remark which sends the forex markets aflutter. Now, repeat after me: "A strong dollar is in the national interest".

U.S. Exchanges Propose Rule to Restrict Short Selling: I like the idea of banning shorting of any stock down more than 10% on the day.