Overnight Finance: Mulvaney asks Congress to retake power over consumer agency | Backs House in fight over Dodd-Frank rollback | Why Corker thinks tax cuts could be one of his 'worst votes' ever | House panel advances IRS reform bills

View in your browser     Happy Wednesday and welcome back to Overnight Finance, where we're excited to announce our bid for Speaker of the House. 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 acting director of the Consumer Financial Protection Bureau (CFPB) asked a House committee Wednesday to rein in the agency's power to police the financial sector. Mick Mulvaney, who is also the White House budget director, urged the House Financial Services Committee to impose several new restrictions on the bureau. He said lawmakers need to take control of the agency's funding, make his successors fireable at will by the president and install an inspector general, among other things. "It's not accountable to you. It's not accountable to the public. It's not accountable to anybody but itself," Mulvaney said of the CFPB, telling lawmakers to "take back authority as the legislature of the country." Republicans showered praise on Mulvaney's efforts to pull back the CFPB, an agency they've long accused of violating the law and abusing its powers to wage a crusade against financial institutions. Democrats who long resisted GOP efforts to change the CFPB ripped Mulvaney for his efforts to ease off its historically aggressive enforcement. Some of them even refused to recognize him as the bureau's acting chief. I'll take you inside the contentious hearing right here. Reactions "It is sheer irony and great comic relief to see the wailing and gnashing of teeth of many of my Democratic colleagues who now denounce the unaccountable nature of the CFPB, but only because now a Republican is in control."  – Rep. Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee. "Mr. Mulvaney is not the acting director of the Consumer Financial Protection Bureau." -- Rep. Maxine Waters (Calif.), ranking Democrat on the House Financial Services Committee. "You are thankfully both a terrible bureaucrat but a great leader," said Rep. Blaine Luetkemeyer (R-Mo.). "The failure of Mulvaney's philosophy (groomed by years of cozying up to special interests) is his startling laziness about enforcing the law." -- Former CFPB Director Richard Cordray. "The clear implication is that the people who were enforcing before are not enforcing anymore. What the heck are they doing now?" -- Rep. Stephen Lynch (D-Mass.).   What comes next: Mulvaney will appear before the Senate Banking Committee on Thursday. Sen. Elizabeth Warren (D-Mass.), the architect of the CFPB who has emerged as the most vocal critic of Mulvaney, will have a chance to grill Mulvaney.     LEADING THE DAY Mulvaney backs Hensarling in power struggle over Dodd-Frank rollback: Mulvaney also endorsed House Republican efforts to seek changes to a bipartisan bill rolling back strict banking rules passed after the 2008 financial crisis. Mulvaney, who is also the acting director of the Consumer Financial Protection Bureau (CFPB), praised the Senate for passing a bill to loosen parts of the Dodd-Frank Act. But he urged senators to add several measures produced by the House to the bill amid a power struggle between the chambers. "I think that is the best formula for arriving to the best result," said Mulvaney, testifying before the House Financial Services Committee. "Why can't we add to the Senate bill?" The Senate last month passed a bipartisan bill to exempt dozens of banks from some of the strictest parts of Dodd-Frank. The measure from Senate Banking Committee Chairman Mike Crapo (R-Idaho) passed 67-31 and is the most sweeping change to the 2010 law to receive support from Democrats. But Speaker Paul Ryan (R-Wis.) vowed to freeze the bill until senators backing the measure agree to include bills produced by the Financial Services panel that earned wide bipartisan support in the House.   Why this matters: Mulvaney's comments are the most direct endorsement of Hensarling's efforts to amend the Senate bill from a White House official. The White House has previously said President Trump would sign the bill, and called on lawmakers to strike a deal as soon as possible. Trump himself said last week that a bill to loosen Dodd-Frank "should be done fairly quickly," but didn't weigh in on the talks between the Senate and House. Mulvaney took a different tone. "It makes complete sense to continue that debate," Mulvaney said, calling the Senate bill "a great fallback" that should target "as much of Dodd-Frank, especially the parts pertaining to the [CFPB], as you possibly can."   Corker fears long run impact of tax cuts: Retiring Tennessee Sen. Bob Corker (R) said his vote on the GOP tax law could be one of the worst of his career if estimates that it will add $1.9 trillion to deficits over a decade prove correct. "If it ends up costing what has been laid out here, it could well be one of the worst votes I've made," he said at a Senate Budget Committee hearing on the Congressional Budget Office (CBO) estimate that produced the figure. "I hope that is not the case, I hope there's other data to assist, whether it's jobs or growth or whatever," Corker added. The Hill's Niv Elis tells us why.   House panel approves bipartisan bills aimed at improving the IRS: The House Ways and Means Committee on Wednesday approved a package of bipartisan bills aimed at reforming the IRS, days before the April 17 tax filing deadline. The bills, which passed the committee by voice vote, make changes aimed at improving the IRS's taxpayer services, cybersecurity, enforcement and appeals. The Ways and Means Committee has been working on efforts to modernize the IRS for the past year and a half, and its oversight subcommittee has held several hearings on the topic. Republicans had sought to overhaul the IRS following the passage of their tax bill. The Hill's Naomi Jagoda breaks them down.  MARKET CHECK: Stocks fell on the day with the Dow Jones Industrial Average dropping 218 points (0.9 percent), while the Nasdaq and S&P 500 fell 0.36 percent and 0.55 percent each.   GOOD TO KNOW  Concerns are mounting over a potential Facebook monopoly. The Trump administration is seeking to limit backlash to its trade policies with a relief package for farmers affected by the U.S. tariff fight with China, according to The Wall Street Journal. Federal Reserve officials at their March meeting saw strong economic growth, rising inflation and more reasons to hike interest rates. (CNBC). Economists say Trump's tariffs are the wrong way to address a valid issue. (New York Times). The Wall Street Journal explores how sanctions have soured investors on Russian markets. Bloomberg explains how Trump's tweets made Russia's top export more valuable than ever. Sen. Bernie Sanders (I-Vt.) decried a report by the Bureau of Labor Statistics showing that most workers in the U.S. have not seen their wages increase over the last year.   ODDS AND ENDS A Netflix shareholder is reportedly suing the company's board of directors, accusing them of rigging the compensation process in the past so that executives would always receive bonuses. Bernie Madoff's former beach house is on the market with an asking price of $21 million.     Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com, and nelis@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill, @NJagoda, and @NivElis.         Did a friend forward you this email? Sign up for Finance Newsletters     Forward Finance Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Overnight Defense: Trump warns missiles 'will be coming' to Syria | White House insists no decision made | California accepts federal funding for more Guard troops | Ryan to retire | Gets praise from defense hawks

View in your browser     Happy Wednesday and welcome to Overnight Defense. I'm Rebecca Kheel, and here's your nightly guide to the latest developments at the Pentagon, on Capitol Hill and beyond.   THE TOPLINE: President Trump is ratcheting up his rhetoric on Syria, as the world awaits his response to an apparent chemical weapons attack in the country. On Wednesday morning, President Trump taunted Russia with a threat that U.S. missiles will be coming to Syria. "Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and 'smart!' You shouldn't be partners with a Gas Killing Animal who kills his people and enjoys it!" Trump tweeted.   Mattis pumps the breaks: Despite Trump's tweet, Defense Secretary James Mattis said Wednesday the United States is still assessing whether the Syrian regime is behind the alleged chemical attack and still working on options to respond. "We're still assessing the intelligence, ourselves and our allies. We're still working on this," Mattis told reporters at the Pentagon prior to meeting with defense officials from the Netherlands. When asked if the U.S. military was ready to conduct retaliatory strikes against Syria, Mattis replied that officials "stand ready to provide military options if they're appropriate as the president determines."   And White House says no decision: Later in the afternoon, the White House said "all options are on the table" despite Trump's tweets threatening to send missiles. White House press secretary Sarah Huckabee Sanders said a final decision has yet to be made on the U.S. response following Trump's early morning tweet warning. "We have a number of options and all of those options are still on the table," Sanders told reporters. "The president has a number of options at his disposal and a number remain on the table." When asked if Trump's tweets represent a national security risk, Sanders said, "Not at all." She defended the tweet, claiming that it didn't give any plans away. She added that the president is still deciding on a timetable and repeating that he's leaving a number of options on the table.   Takeaway: Military action appears all but inevitable at this point -- with the outstanding questions being when it will happen, how extensive that action will be and in what capacity U.S. allies will participate.     CALIFORNIA ACCEPTS FUNDING FOR MORE GUARD TROOPS: Ending days of speculation over whether California would contribute guardsmen to the new southern border mission, Gov. Jerry Brown (D) said Wednesday he would accept federal funding to increase the California Guard's numbers. Brown wrote in a letter to Defense Secretary James Mattis and Homeland Security Secretary Kirstjen Nielsen that the California National Guard would accept federal funding to add "approximately 400 Guard members statewide to supplement the staffing of its ongoing program to combat transnational crime."   What this means: Unlike President Trump's request, not all of California's new guardsmen will go to the border. Instead, Brown said, the troops would join an existing program to combat transnational crime at the border, the coast and elsewhere in the state. The program already has 250 California Guard troops, including 55 at the border. Brown made clear the troops would not help Trump's immigration agenda. "But let's be crystal clear on the scope of this mission," Brown wrote. "This will not be a mission to build a new wall. It will not be a mission to round up women and children or detain people escaping violence and seeking a better life. And the California National Guard will not be enforcing federal immigration laws."   By the numbers: California's 400 guardsmen will join the 1,600 already pledged by the Republican governors of Arizona, New Mexico and Texas. Mattis's memo last week authorized up to 4,000 Guard troops.   COAST GUARD WEIGHS IN ON WALL: The Coast Guard's top admiral said Wednesday it would be "shortsighted" to think building a wall along the U.S.-Mexico border will stem illegal immigration on its own. "I think we'd be shortsighted to think that if we build a wall that will end all the drivers for illegal migration," Adm. Paul Zukunft, commandant of the Coast Guard, said at an event in Washington when asked if he's expecting an increase of illegal immigration via the ocean. "If you can't come across a terrestrial border between Mexico and the United States, then go around it," he continued. "We keep a very close eye on what those trends are. Hasn't happened, but that would probably be several years [away]." Zukunft, who has announced his retirement for June, was speaking to the Defense Writers Group.   RYAN ANNOUNCES RETIREMENT: While the big story in defense remains Syria, the biggest story on Capitol Hill Wednesday was House Speaker Paul Ryan (R-Wis.) announcing his retirement at the end of this Congress. One of the accomplishments Ryan touted in his announcement was bulking up military spending. Defense hawks had kind words for the speaker Wednesday. "One of Speaker Ryan's most important legacies will be his central role in beginning to rebuild our military and repair that damage that has been inflicted on it in recent years," House Armed Services Committee Chairman Mac Thornberry (R-Texas) said in a statement. "There is more work to do in that regard this year, and I know that Paul will continue his unwavering support for the men and women who serve our nation in the armed services."   THIRD NATIONAL SECURITY ADVISER LEAVES WHITE HOUSE: Deputy national security adviser Nadia Schadlow has resigned, as new national security adviser John Bolton seeks to reshape his team. Schadlow is the third high-ranking national security official to exit or be pushed out of the White House since Bolton took over on Monday. National Security Council spokesman Michael Anton and homeland security adviser Tom Bossert are the other two officials who have left following Bolton's start. Expect more staff changes from Bolton in the coming days.   ON TAP FOR TOMORROW: The Senate Foreign Relations Committee will hold a confirmation hearing for Mike Pompeo to be secretary of State at 9:30 a.m. at the Senate Dirksen Office Building, room 419. https://bit.ly/2qgKvaZ Army Secretary Mark Esper and Chief of Staff Gen. Mark Milley will testify before the Senate Armed Services Committee at 9:30 a.m. at Dirksen G-50. https://bit.ly/2I6zfVh Defense Secretary James Mattis and Joint Chiefs Chairman Gen. Joseph Dunford will testify before the House Armed Services Committee at 10 a.m. at the Rayburn House Office Building, room 2118. https://bit.ly/2GRrGBD The House Appropriations defense subcommittee will hold a hearing on the fiscal year 2019 budget request for the National Guard and the reserves. https://bit.ly/2qkkqrn A House Armed Services subcommittee will hold a hearing on the fiscal 2019 budget request for combat aviation programs at 2 p.m. at Rayburn 2212. https://bit.ly/2v4Dm2c Another House Armed Services subcommittee will hold a hearing on having the right capabilities in a 355-ship Navy at 3:30 p.m. at Rayburn 2118. https://bit.ly/2qlhpXR    ICYMI: -- The Hill: Pentagon stops accepting F-35 deliveries from Lockheed: report -- The Hill: Third top national security aide to leave White House -- The Hill: Trump nominates new commanders for military operations in Asia-Pacific, North America -- The Hill: Opinion: In Syria, President Trump must strike and stay -- The Hill: Opinion: The Haspel nomination: The delicate balance of the process -- Associated Press: Yemeni rebel missiles, drones target Saudi capital, south -- Military Times: Vets groups and lawmakers say they're against it -- but what does 'privatization' of Veterans Affairs really mean?     Please send tips and comments to Rebecca Kheel, rkheel@thehill.com, and Ellen Mitchell, emitchell@thehill.com. Follow us on Twitter: @thehill, @Rebecca_H_K, @EllenMitchell23         Did a friend forward you this email? Sign up for Defense Newsletters     Forward Defense Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

Overnight Cybersecurity: Highlights from Zuckerberg, round two | Senate panel to consider bill protecting Mueller | Pentagon could roll out cyber posture by August

View in your browser       Welcome to OVERNIGHT CYBERSECURITY, your daily rundown of the biggest news in the world of hacking and data privacy. We're here to connect the dots as leaders in government, policy and industry try to counter the rise in cyber threats. What lies ahead for Congress, the administration and the latest company under siege? Whether you're a consumer, a techie or a D.C. lifer, we're here to give you ...   THE BIG STORY:  --ANOTHER DAY OF ZUCKERBERG: Facebook CEO Mark Zuckerberg appeared for another marathon hearing before House lawmakers on Wednesday, after holding his own before members of the Senate Commerce and Judiciary Committees Tuesday.  Zuckerberg spent roughly five hours being grilled by the House Commerce Committee on Wednesday -- bringing him to a grand total of 10 hours of congressional testimony (!) in just two days. Some of the key moments from the latest hearing:   --MORE CALLS FOR PRIVACY LEGISLATION: Wednesday's hearing brought more calls for privacy legislation in the wake of the Cambridge Analytica data leak that impacted tens of millions of Facebook users. Rep. Frank Pallone Jr. (D-N.J.), the committee's ranking member, came out swinging in his opening statement, saying Republican inaction is to blame for the stream of privacy breaches that have dominated the news recently. "By not doing its job, this Republican-controlled Congress has become complicit in this nonstop cycle of privacy by press release," Pallone said, arguing that Facebook and the rest of the major internet platforms need to be regulated. "We need comprehensive privacy and data security legislation," he added. "We need baseline protections that stretch from internet service providers to data brokers to app developers and to anyone else who makes a living off our data." We heard a few senators voice support yesterday for new privacy laws, but Zuckerberg refused to endorse the idea, saying only that he supported greater privacy protections in theory.   --MORE DIAMOND AND SILK: Zuckerberg was forced to repeatedly address recent revelations that Trump supporters Diamond and Silk were blocked from Facebook after the company labeled their content "unsafe to the community." "In that specific case, our team made an enforcement error, and we have already got in touch with them to reverse it," Zuckerberg told Rep. Joe Barton (R-Texas) during one exchange.  "You need to work with Congress and the community to ensure that it is a neutral, safe, and to the largest extent, private platform. Do you agree with that?" Barton asked. "I do agree that we should work to give people the fullest free expression possible. When I talk about giving people a voice, that's what I care about," Zuckerberg responded. Sen. Ted Cruz (R-Texas) similarly grilled Zuckerberg on the issue Tuesday.   --ZUCKERBERG COMMITS TO EXTENDING EU PRIVACY PROTECTIONS: Zuckerberg again promised to provide privacy protections for Facebook users around the world once a new European Union data law goes into effect next month. The law will only apply to European countries, but privacy advocates have been urging Facebook to extend the changes that will be required to rest of the world. Rep. Gene Green (D-Texas) asked the Facebook CEO to affirm the commitment he made last week. "Yes, congressman, all the same controls will be available around the world," Zuckerberg said. "We're going to put at the top of everyone's app when they sign in, a tool that walks people through the settings, and gives people the choices and asks them to make decisions on how they want their settings set," he added. The General Data Protection Regulation (GDPR) will go into effect on May 25 and will require internet firms to be more transparent about their data policies and give users more control over their own information.   --ZUCKERBERG DEFENDS AD TARGETING SYSTEM: Lawmakers of both parties have been voicing unease about Facebook's targeted ad system and how it profits off of users' aggregate data. Zuckerberg offered a defense of the system after being pressed by Rep. Brett Guthrie (R-Ky.) about what would happen if the company shifted away from using personal data to deliver tailored ads. "For people using the services, it would make the ads less relevant to them," Zuckerberg said. "For businesses, like the small businesses using advertising, it would make advertising more expensive because now they would have to pay more to reach more people and efficiently because targeting helps small businesses be able to afford and reach people as effectively as big companies who typically have the ability to do for a long time. It would affect our revenue, too." The Cambridge Analytica scandal has put the ad system in the spotlight in recent weeks. Check out our full live blog here.     A LEGISLATIVE UPDATE:  SENATE PANEL TO TAKE UP BILL PROTECTING MUELLER: The Senate Judiciary Committee is punting a bill limiting President Trump's ability to fire special counsel Robert Mueller into next week, instead of considering it on Thursday. Sen. Dianne Feinstein (D-Calif.) said she and Sen. Chuck Grassley (R-Iowa), the committee chairman, had "agreed to not take action this week but instead place the bill on the committee's markup calendar next week." "I'm worried about an amendment we haven't been able to review that could undermine the investigation," she said. Asked what amendment Feinstein, the top Democrat on the committee, was referring to, her spokesman pointed toward a recent New York Times article. GOP committee aides told the Times that Grassley wants to offer an amendment that would require the Justice Department to give a report to Congress when there is a change in the scope of a special counsel investigation or if the special counsel is fired. Pushing the legislation into next week is a delay from Grassley's request to put it under the committee's agenda for a business meeting on Thursday. Grassley aides noted earlier Wednesday that the GOP senator needed Feinstein to sign off on changing Thursday's agenda because it was within 72 hours of the meeting. The legislation, from Sens. Christopher Coons (D-Del.), Cory Booker (D-N.J.), Thom Tillis (R-N.C.) and Lindsey Graham (R-S.C.), would let Mueller, or any other special counsel, receive an "expedited judicial review" within 10 days of being fired to determine if it was for a "good cause." If it wasn't, the special counsel would be reinstated. The measure would also codify existing regulations that only a senior Justice Department official can fire a special counsel and that they must provide the reason in writing. To read more from our piece, click here.   A FEW NOMINATIONS IN FOCUS:  This slipped under our radar yesterday amid all the news: The Senate Intelligence Committee advanced the nomination of Lt. Gen. Paul Nakasone to serve as the next director of the National Security Agency and the chief of U.S. Cyber Command. The Senate Armed Services Committee, which also has jurisdiction over the nomination, approved him last month. Now, his nomination will be considered by the full Senate. If confirmed, Nakasone will replace outgoing NSA Director Adm. Mike Rogers. And tomorrow, CIA Director Mike Pompeo is slated to appear before the Senate Foreign Relations Committee for his confirmation hearing to serve as President Trump's secretary of state. Expect him to face questions on Russian interference in the election, his positions on North Korea and Iran, and former secretary of State Rex Tillerson's plans to reorganize the department.   A LIGHTER CLICK:  Cryptocurrency for kids? (Motherboard)   WHAT'S IN THE SPOTLIGHT: CYBER COMMAND:  A top Department of Defense official on Wednesday said the law enforcement agency expects to have a national cyber posture approach by the time the White House rolls out their cyber strategy in August. "It should be forthcoming in the near future. We are looking to then enhance our cyber posture approach, which we will be providing by August to sync with that national strategy," said Kenneth Rapuano, who oversees the DOD's Defense for Homeland Defense and Global Security. Tom Bossert, who resigned as the White House Homeland Security Adviser on Tuesday, had played a key role in the efforts to develop a national cybersecurity strategy while serving in the Trump administration. The White House national approach is expected to focus on boosting the security of federal government computer networks, coming up with a framework that establishes what is good or bad behavior in cyberspace, and directing more federal resources towards improving critical infrastructure. Rapuano testified alongside Adm. Michael Rogers, the head of the National Security Agency and U.S. Cyber Command, before the House Armed Services Committee about the status of the government's cyber strategy. In what could be his last congressional testimony before he retires, Rogers emphasized there is room to grow in cyber but there are improvements already being made. He highlighted how the government has made a handful of accomplishments this year in addition to touting that the CYBERCOM teams are expected to have full operating capability ahead of schedule. The NSA chief also highlighted how Joint Task Force Ares, a Cyber Command unit, has a grown in its ability to disrupt ISIS and other extremists groups from using the internet for their means as well as broader military campaigns through cyber. Rogers identified Russia and China as some of the country's biggest rivals in cyberspace, while expressing concern that "rogue nations" like Iran and North Korea have "growing capabilities and are using these aggressive methods for cyber.    IN CASE YOU MISSED IT: Links from our blog, The Hill, and around the Web. Paul Ryan is retiring as speaker in January. (The Hill) Reddit identifies nearly 1,000 accounts linked to Russian troll farm. (The Hill) Cambridge Analytica acting CEO steps down. (The Hill) An ousted NSC staffer is joining the Department of Justice. (The Hill) OP-ED: It's not just Facebook's problem. (The Hill) The Election Assistance Commission is hosting a public forum on election security in Miami next week. (EAC) States are participating in Homeland Security's 'Cyber Storm' exercise this week. (CyberStorm) If you'd like to receive our newsletter in your inbox, please sign up here.           Did a friend forward you this email? Sign up for Cybersecurity Newsletters     Forward Cybersecurity Newsletters       Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  |  Email to a friend  |  Sign Up for Other Newsletters   The Hill 1625 K Street, NW 9th Floor, Washington DC 20006 ©2016 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.