The merger of Smithfield and Shuanghui must still be cleared by Smithfield shareholders and U.S. regulators, including the Committee on Foreign Investment in the United States.(Photo: 2009 AP photo by Steve Helber)Story HighlightsCommittee on Foreign Investment in the United States will review impact of deal on national securityPanel includes several federal agencies and is notorious for operating in secretSeveral members of Congress are already expressing concern about the dealWASHINGTON — The fate of a Chinese company's controversial $4.7 billion purchase of U.S. pork giant Smithfield Foods could rest in the hands of a secretive and powerful government panel little known outside of the nation's capital.The proposed takeover announced last month[1] of Virginia-based Smithfield, the world's largest pork processor and hog producer, by China's Shuanghui International Holdings has thrust the government's Committee on Foreign Investment in the United States (CFIUS) into the spotlight, highlighting the growing concern about U.S. companies being purchased by foreign entities.The committee "only raises its head during controversy but the truth is it operates all the time even when people aren't hearing about it," said Josh Zive, a senior counsel at Bracewell & Giuliani who has represented several companies involved in the CFIUS process for more than a decade."The fact that (this merger) is being talked about in the context of CFIUS is indicative of how sensitive investors are with China in that you would want to get the review and approval of this out of the way, up front," he said.The committee was given the authority in 1988 to review the impact that foreign purchases of American companies have on national security. CFIUS, which is headed by the Treasury secretary, includes members from the departments of Justice, Homeland Security and Energy along with five other agencies.The government panel is notorious for operating in secret and is…

Acting IRS Commissioner Danny Werfel prepares to testify on Capitol Hill in Washington on Monday before the House Appropriations Subcommittee on Financial Services and General Government regarding a report that the IRS spent about $50 million to hold at least 220 conferences for employees from 2010 to 2012.(Photo: Charles Dharapak AP)Story HighlightsDanny Werfel was appointed as interim chief of the IRS after the scandal brokeAgency targeted Tea Party groups for added reviewCongress debates IRS budget as administration promises overhaulWASHINGTON — The new acting commissioner of the Internal Revenue Service said Monday he's looking at the "broad spectrum" of the agency's activities in an effort to restore public confidence, and he promised "absolute transparency" in what he finds.Danny Werfel told a House subcommittee Monday that he has appointed two career IRS officials to oversee the unit that improperly targeted Tea Party groups for additional scrutiny. They are Ken Corbin, who takes over for the suspended Lois Lerner as head of the Exempt Organizations office, and Michael Julianelle, who will be acting commissioner for the Tax Exempt and Government Entities Division. While the FBI, the inspector general and several congressional committees probe how the IRS decided to flag Tea Party groups, Werfel said he's already come to an "inescapable" conclusion: The targeting was inappropriate, and there was a "fundamental failure" by IRS management to prevent the affair and to halt it once it was discovered.President Obama tapped Werfel to lead the agency last month after the scandal broke and two top IRS officials resigned. Werfel, a former controller at the Office of Management and Budget, will remain on through September. The hearing revealed few details of who ordered the targeting and what motivated it. "During our audit, we did pose that question, and no one would acknowledge who gave that direction," testified…

People look for post-Christmas sales at a shopping mall in Los Angeles, California on December 26, 2012.(Photo: ROBYN BECK AFP/Getty Images)Story HighlightsGovernment's second estimate of Q1 GDP shows slightly slower growthEconomic growth restrained by federal spending cutsEconomists forecast even slower growth pace for Q2The economy grew at a 2.4% annual rate during the first quarter, slightly less than the 2.5% originally estimated, the government said Thursday.The biggest changes in estimated growth came from smaller accumulation of inventories by businesses and fewer exports, partly offset by fewer imports, the Bureau of Economic Analysis reported. JOBS: Claims for unemployment benefits rise modestly[1]The news appears to confirm economists' views that the federal spending cuts that took effect in June are slowing the economy, which grew at a 3.1% annual clip in the middle of last year before cuts in defense and other spending began showing up in the fourth quarter. For that quarter, the annualized growth rate was 0.4%. The economy is on track to slow further: Data released so far about the second quarter suggest that gross domestic product will grow at a 1.9% annual rate, according to Moody's Analytics."The general picture of overall economic activity is not greatly changed,'' the BEA's announcement said.Consumer spending, which accounts for 70% of the economy, grew at a relatively brisk 3.4% annual rate, almost twice as fast as in late 2012. Acceleration in purchases of non-durable goods and services drove the gains, an important sign that the recovery is spreading beyond sectors such as housing and automobile sales.On the other hand, growth in private investment was a tepid 2.2%, with growth in non-residential real estate development dropping to 2.2% from 13.2% late last year. And federal government spending dropped 8.7%, as defense cuts mandated by the 2011 deal to raise the debt ceiling began to…