The New Financial District

Is the nation’s capital a new financial center? According to today’s Washington Post, for better or for worse, it is. “As financial firms navigate a life more closely connected to government aid and oversight than ever before, they increasingly turn to Washington, closing a chasm that was previously far greater than the 228 miles separating the nation's political and financial capitals,” the paper says. No longer sidelined, D.C. has become involved in “everything from credit cards and home loans to auto manufacturing, from overseeing executive pay to shaping boards of directors.” While for years the federal government has been a key regulator of the financial markets and monetary policy, over the past year, the government has become much more of a dominant player. Even as many firms open up offices in D.C. or add staff to offices there though, the article acknowledges that as rescue programs wind down, so may the city’s newfound prominence.

In the letter to Kraft's CEO yesterday, Cadbury’s Chairman Roger Carr reaffirmed the British candy maker’s rejection of a takeover, says Reuters. "Under your proposal, Cadbury would be absorbed into Kraft's low growth, conglomerate business model, an unappealing prospect which contrasts sharply with our strategy to be a pure play confectionery company," Carr said in the letter according to the article. On Monday, Kraft (KFT) launched a bid for Cadbury for 10.2 billion pounds ($17 billion), which Cadbury has rejected in the argument that the sum undervalued the company.

Today's New York Times takes a look at those laid off a year ago at Lehman Bros. So where are they now? That depends on whom you ask. “Some of those Lehman alumni who didn’t manage to hang on to Wall Street jobs are still angry, bitter and confused,” the article says. The “luckiest” made enough money during better times to avoid having to seek out new jobs. Others are finding jobs outside of banking, while another group can’t find work and remains “fearful that Wall Street will bounce back without” them.

The Wall Street Journal reports that California financier Danny Pang has died. While the article says that foul play isn't suspected in the death, an autopsy will determine whether the death was self-inflicted. Pang had been under great pressure recently after being accused by federal regulators of “masterminding a massive international securities fraud and misappropriating millions of dollars for himself.” Before his death, Pang had been confined to his Newport Beach home with an electronic monitoring device on his ankle.

Don’t get tricked into thinking that the economic crisis is over, the head of the IMF warned yesterday. According to the AP via Business Week, he was quoted as saying, "In the minds of too many—not only regular people but also top politicians—the financial crisis is already behind us. … That way of thinking is dangerous.” He argued for continued persistence in watching unemployment and pushing stricter standards for executive compensation and capital requirements for banks.

Finally, according to the L.A. Times, yesterday Disney (DIS) unveiled plans for the largest expansion of Magic Kingdom at Walt Disney World ever. According to the paper, “Walt Disney Parks and Resorts Chairman Jay Rasulo chose the D23 Expo in Anaheim, the first-ever gathering of Disney devotees, to announce the ambitious new project in Orlando, Fla., that will nearly double the size of Fantasyland. He also confirmed speculation that Disney would update the Star Tours attraction based on George Lucas' original 'Star Wars' trilogy, adding 3-D effects to the ride at the Disneyland Resort in Anaheim and Disney's Hollywood Studios in Florida.” The paper says that these improvements mark yet another attempt to maintain attendance levels as the parks, which contribute about one-third of Disney’s revenue.