NPR 2010-02-12

From NPR News in Washington, I'm Lakshmi Singh.

A new report from the panel overseeing the Troubled Asset Relief Program warns that some 3,000 small and mid-sized banks may be forced to cut back their lending because of commercial real estate loans gone bad. NPR's Tamara Keith reports.

Nearly 1.5 trillion dollars worth of commercial real estate loans will need to be refinanced in the next four years. These are loans that helped build and buy strip malls, office space, hotels and apartments. The Congressional Oversight 1 Panel's report says nearly half of those loans are "underwater", meaning the borrowers owe more than the properties are worth. That spells trouble for small and mid-sized banks which are even more exposed to these kinds of loans than their larger counterparts. The panel says it can't predict how many loans will fall into foreclosure, but the report says in a worst-case scenario 2, hundreds more community banks could fail. Those same banks play a critical role in financing the small businesses that are needed to help the economy recover. Tamara Keith, NPR News, Washington.

A new bipartisan jobs bill has been unveiled by the top Democratic and Republican senators on the Senate Finance Committee. It includes a tax break for companies that hire workers this year, more money for highway construction and extensions on unemployment payments and COBRA healthcare subsidies 3.

New unemployment claims are down again reversing its upward trend from recent weeks. The Labor 4 Department is reporting applications dropped by 43,000 last week to a seasonally 6 adjusted 440,000.

Today, South Africa is commemorating 7 the 20th anniversary of Nelson Mandela's release from prison. Mandela, who will be 92 in July, was incarcerated 8 for nearly three decades before being elected to lead the country. Vicky O'Hara reports from Johannesburg.

Thousands gathered just outside Cape 9 Town to re-enact Mandela's release from the Victor Verster Prison. He had spent 27 years behind bars, until the nation's white-ruled government gave way to internal and external pressure and gave up power. The country's long-oppressed black majority had great hopes for the future. Mandela was elected South Africa's first black president. Under his leadership, the nation embarked 10 on a policy of racial reconciliation 11. Mandela's dream was that all races living and working together in harmony. Twenty years later, blacks have made great strides. Nonetheless, South Africa faces widespread unemployment, corruption 12, criminality, and the gap between rich and poor is even greater than during the days of apartheid. For NPR News, I'm Vicky O'Hara in Johannesburg.

U.S. stocks continue to gain ground. At last check, the Dow was up more than 100 points at 10,141, and the NASDAQ was up 27 at 2,175.

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In the Iranian capital, more clashes broke out today between police and anti-government protesters. Security personnel fired tear gas to disperse 13 the crowds. They also fired a tear gas at protesters to identify them; rather they fired paintballs at the protesters to identify them for arrest. This, as hundreds of thousands of government supporters gathered in Teheran to mark the anniversary of Iran's Islamic Revolution.

The World Health Organization is considering whether to declare that the worst of the flu pandemic is over. The WHO is planning for a return to regular seasonal 5 flu epidemics 14. NPR's Richard Knox has more.

Flu activity is declining throughout the Northern Hemisphere. The WHO is seeing no evidence of a third wave of pandemic flu following surges last spring and fall, but the agency expects local outbreaks and upsurges. One new outbreak is occurring now in the West African country of Senegal. Later this month, the WHO will convene 15 an advisory 16 committee to help decide that the pandemic is in transition back to normal seasonal flu outbreaks. Next week, the agency will decide what flu strains to include in the next fall’s seasonal vaccine 17. It's a good bet that will include the pandemic H1N1 virus, but it will probably include an H3N2 virus now circulating in China and an influenza-B type virus that's currently causing three quarters of China's flu cases. Richard Knox, NPR News.

Security forces in northwest Pakistan reeling today from a second attack in as many days. At least 15 people have died. In Bannu, more than 20 people were also injured from two explosions at a security complex. The second blast came as people were responding to the first deadly strike.

I'm Lakshmi Singh, NPR News.