Happy Tuesday and welcome back to Overnight Finance, a systemically important financial newsletter. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line. See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N. THE BIG DEAL: The Senate on Tuesday took its first step toward passing a major bipartisan rollback of the tough banking rules enacted by former President Obama after the 2008 financial crisis. Senators voted 67 to 32 to take up a motion to start debating a bipartisan bill to exempt dozens of banks from parts of the Dodd-Frank Act, passed in 2010 to make the financial system safer and stronger. Republicans and a coalition of moderate Democrats voted to move ahead with the bill they call an overdue fix to Dodd-Frank that would help smaller firms boost rural and struggling economies. The bill has stoked deep divisions among Democrats. Moderates backing the measure say it's a major bipartisan achievement that can help restore the American people's faith in Congress. Liberals have panned any talk of bipartisanship, pledging to make the process as painful as they can for supporters. Reactions - "A bank worth a quarter-trillion dollars is not a community bank and shouldn't be regulated like a community bank." -- Sen. Elizabeth Warren (D-Mass.)
- "I am not going to let this legislative history get papered with misstatements about this bill." -- Sen. Heidi Heitkamp (D-N.D.).
- "Why should we have to roll back rules for the largest banks in Switzerland in order to help out community banks or credit unions in Ohio?" -- Sen. Sherrod Brown (D-Ohio).
- "If we miss the opportunity, it has dramatic, negative impacts on rural Americans." -- Sen. Jon Tester (D-Mont.)
Where Senate Republicans are: Sitting pretty for now. They get to watch Democrats bloody themselves over a huge issue within their party while passing the biggest changes to Dodd-Frank since its 2010 passage. The bill is almost certain to pass the Senate, and by then the damage to Democrats will already be done. Where House Republicans are: Mulling their options. The lower chamber already passed the CHOICE Act in 2017, a much more conservative bill revamping Dodd-Frank that had no chance of making it through the Senate. The Crapo bill lacks many of the provisions House Republicans say are essential to rolling back Dodd-Frank. It does nothing to the Consumer Financial Protection Bureau, maintains a hard threshold for enhanced Federal Reserve oversight, and maintains a key backstop for failing banks -- all loathed by Republicans. But several House Republicans told The Hill on Tuesday that they could soften their stance in order to pass the last, best chance to roll back Dodd-Frank. We'll have more on that tomorrow. What comes next: The bipartisan Senate coalition backing the bill is negotiating with House Financial Services Committee Chairman Jeb Hensarling (R-Texas) on adding measures that passed both chambers with near-unanimous support. Those measures are intended to add more Republican votes in the House without upsetting the tenuous balance in the Senate. Senate Democrats were clear Tuesday that overzealous changes from the House would stop the bill from passing the upper chamber again. ALSO A BIG DEAL: Gary Cohn, the director of the White House National Economic Council, is resigning over Trump's plan to impose tariffs on steel and aluminum. Cohn, Trump's top economic adviser and the former COO of Goldman Sachs, was rumored to have been broken with the president over the tariffs. He is expected to stay in the job for several more weeks. Follow the breaking story here. In Cohn's words: "It has been an honor to serve my country and enact pro-growth economic policies to benefit the American people, in particular the passage of historic tax reform," he said in a statement. "I am grateful to the president for giving me this opportunity and wish him and the administration great success in the future," he said. Trump on Cohn's exit: "Gary has been my chief economic advisor and did a superb job in driving our agenda, helping to deliver historic tax cuts and reforms and unleashing the American economy once again," Trump said in a statement. "He is a rare talent, and I thank him for his dedicated service to the American people." More reaction: Goldman Sachs CEO Lloyd Blankfein praised Cohn and said he was "disappointed" to see him leave the White House. And a Democratic lawmaker trolled Trump after the news, citing the president's claim that everyone wants to work in his White House. And there's already speculation about a replacement: From CNBC Washington correspondent Eamon Javers on Twitter: "Administration source tells me top two candidates to replace Cohn will be Peter Navarro and Larry Kudlow - two men with VERY different views on trade." |
沒有留言:
張貼留言