“The Obama team also steered clear of consulting Wall Street about its plan in an effort to avoid being seen as joining with a much-maligned industry, officials say. Top bank executives have been complaining in recent days of being frozen out as the administration crafted its plan.”

Wall Street Journal — Geithner at the Improv

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he Wall Street Journal editorial page remained sympathetic toward the Treasury Secretary, and points out that his performance Tuesday could have been worse. Even so, capitalism’s newspaper of record drops the hammer on Tim Geithner. “Like President Obama’s, Mr. Geithner’s rhetoric tends too much toward doom and gloom for our tastes, or to help public confidence. Americans know this mess is going to take time to work out. But there is a great deal of private capital ready to take risks again if the Obama Treasury lays out transparent, consistent rules — and if it makes clear that its goal is to restore at the earliest possible date a healthy, privately run banking system.”

Washington Post — Facing Oversight, Banks Go on Offense

Writer Amit Paley gives a useful look at the CEO bashing that’s going to take place on the Hill today as Barney Frank’ s House Financial Services Committee grills the heads of the bailout banks. While Frank was picking out his piñata stick, though, the bank bosses were hoping to appease their would-be tormenters with a raft of self-imposed regulation.

“Bank executives hope their adoption of risk management will soften the anger from lawmakers, according to Williams. He said it is similar to a move by J.P. Morgan in the early 1990s to develop a risk-management approach for the industry before the government did. ‘They were very proactive in anticipating and heading off additional regulation,’ he said. ‘They realized if they didn’t develop it then regulators would.’”

Washington Post — Obama Paints America’s Choice as His Plan or Nothing

Writers Michael Shear and Anne Kornblut look at the straw men being built by the president to sell the stimulus. They even compare his tactics to George W. Bush.

The truth is that everyone has a stimulus plan, even if Obama is casting opponents as do-nothing obstructionists. Even the libertarians are up for some stimulus.

“Even those who think that no new government spending is necessary do not advocate a stand-still approach. A newspaper ad by the Cato Institute, signed by 250 economists, argued for removing ‘impediments to work, saving, investment and production’ and said that ‘lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.’”

New York Times – “Battle Is Close in Israeli Election”

As Israelis wait to see who has the votes to form a government, Americans and their president are also waiting to see what direction peace efforts in the region will take.

Writers Ethan Bronner and Isabel Kershner look at the political intricacies of showdown between conservative Bibi Netanyahu and liberal Tzipi Livni. If it’s Netanyahu, he’ll need the help of a hard-line party to put together a ruling coalition. It’s especially significant because Iran has suddenly opened up to talking with the Obama administration. A thaw with Iran and a sharp right turn in Israel could make it hard for Obama and his foreign policy team.

“[Netanyahu] said that he had formed a good rapport with President Obama in two meetings when Mr. Obama was the Democratic candidate, and that he plans to bolster Palestinian economic and civil institutions before starting more serious political negotiations.

Ms. Livni has countered that a right-wing government led by Mr. Netanyahu would inevitably clash with Washington.”