| | | | |  | | By Sam Sutton and Declan Harty | Presented by Consumer Credit Card Protection Coalition | Editor’s note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. Act on the news with POLITICO Pro.
| | Sen. Elizabeth Warren (D-Mass.) is putting the private equity industry at the center of her case for why SEC Chair Gary Gensler needs to cast a wide net to reel in climate data from public companies. “Publicly-traded private equity firms appear particularly prone to understating their [greenhouse gas] emissions and presenting misleading climate-related claims to investors,” the Massachusetts Democrat wrote in a letter to Gensler late Tuesday. Progressive Democrats have been pressing the SEC chair to include so-called “scope 3” disclosures in the final rule, which force companies to account for the emissions of customers and external supply chains in their estimates. On Wall Street, that would include those generated by banks and money managers’ financing and investing activities. It’s the latest sign of mounting anxiety among Democrats and investor advocates about the state of the SEC's final rule. Industry groups say providing that level of information would be costly and unworkable. That tension — along with oh-so-many-others — is likely to feature when Gensler heads to the House Financial Services Committee for an oversight hearing today. Warren’s latest argument posits that not obtaining those disclosures would also let the world’s largest private equity firms off the hook when it comes to providing estimates of the greenhouse gasses emitted by the companies under their control — including some large oil and gas businesses. But Warren’s letter — which she led with Reps. Rashida Tlaib (D-Mich.), Jamie Raskin (D-Md.) and Adam Schiff (D-Calif.) and has 27 signatures in total — is yet another sign that policymakers are eager to dig into opaque private financial markets that aren’t as accessible to regulatory agencies. Gensler has already taken steps to force private market fund managers to disclose more information to their investors and the agency. Lawmakers on both sides of the aisle have raised red flags about PE’s growing involvement in health care markets. The Financial Stability Oversight Council, meanwhile, is planning to address systemic risks posed by nonbank financial institutions — a loose term that could include everything from private equity and credit managers to money market funds. Will Washington’s prying eyes extend to the emissions of private equity-owned businesses? That’s what Warren’s gunning for. “The SEC must vigorously use its existing tools to scrutinize and improve the quality of emissions and transition plan disclosures, including from financial firms,” she wrote. IT’S WEDNESDAY — Send tips, gossip and suggestions to Sam at ssutton@politico.com and Zach at zwarmbrodt@politico.com.
| | | | A message from Consumer Credit Card Protection Coalition: With a government shutdown on the line, why are some politicians more focused on defunding your data security than protecting hard working Americans? If Congress passes the Durbin-Marshall Credit Card bill, it would defund data security for credit card transactions, leaving millions of Americans exposed to more fraud and hacking just to fund big retailer bailouts. Learn more and tell Congress to stop the Durbin-Marshall credit card bill. | | | | | | Durable goods orders data for August is out at 8:30 a.m. … Senate Banking has a markup on SAFER Banking at 9:30 a.m. … SEC’s Gensler will testify in front of House Financial Services at 10 a.m. …Former Treasury Secretary Robert Rubin, Former House Speaker Paul Ryan (R-Wis.) and former Office of Management and Budget Director Peter Orszag will speak at a Brookings Institution event on tax policy at 1 p.m. Shutdown watch — Our Caitlin Emma: “Senate leaders released the details of a seven-week stopgap spending bill on Tuesday afternoon, hoping to pass a bill through both chambers of Congress within five days — and little room for error.” — But as Burgess Everett, Sarah Ferris, Caitlin and Ursula Perano report, the Senate bill is “a direct confrontation of the House GOP that risks raising the already high prospects of a government shutdown.” — One reason to get it done? Hill staffers won’t be able to pay their student loan bills through the assistance program offered by the House and Senate, Sarah Ferris and Katherine Tully-McManus report. Flood insurance — Meanwhile, coastal lawmakers led by Sen. John Kennedy (R-La.) want to pass a short-term extension of the National Flood Insurance Program – which is typically synced to government funding cycles — if Congress fails to reach an agreement that would keep the lights on, Zach reports. House Financial Services Chair Patrick McHenry (R-N.C.) said he expects Congress to reauthorize the National Flood Insurance Program even if lawmakers fail to pass government funding legislation. McHenry said he expects to support Kennedy’s bill, which would extend the program for three months in its current version. “Whatever bill that can clear the Senate, so we don’t have any interruption in the flood insurance program — as long as it doesn’t change the program otherwise — I will support,” he said, per Jasper Goodman. — The public’s wariness of a shutdown is also climbing. More than 70 percent now say they’re concerned lawmakers won’t reach a deal, according to a new poll that the Peter G. Peterson Foundation shared exclusively with MM. Meanwhile, consumer confidence is flagging. Lawyers, guns and money and SAFER Banking — With the Senate Banking Committee poised to vote on landmark cannabis banking legislation this morning, “a GOP feud over guns, oil and cryptocurrency may blow it all up,” our Eleanor Mueller and Natalie Fertig report. The fight has to do with whether protections that were inserted as a “conservative sweetener” will do enough to protect firearm, energy and crypto businesses from getting shut off from their bank accounts. On the eve of the vote, it “underscores the immense political challenge that Washington policymakers face in easing federal cannabis restrictions even on the edges, despite 38 states legalizing some form of marijuana.”
| | | | A NEW POLITICO PODCAST: POLITICO Tech is an authoritative insider briefing on the politics and policy of technology. From crypto and the metaverse to cybersecurity and AI, we explore the who, what and how of policy shaping future industries. We’re kicking off with a series exploring darknet marketplaces, the virtual platforms that enable actors from all corners of the online world to traffic illicit goods. As malware and cybercrime attacks become increasingly frequent, regulators and law enforcement agencies work different angles to shut these platforms down, but new, often more unassailable marketplaces pop up. SUBSCRIBE AND START LISTENING TODAY. | | | | | More news from Eleanor and Natalie: FIRST IN MM — The top Republican on the Banking Committee, Sen. Tim Scott (R-S.C.), plans to vote "no" by proxy on the cannabis banking bill while traveling for the GOP presidential debate, spokesperson Ryann DuRant told Eleanor. Scott "has maintained the need for the bill to go through regular order so members on both sides of the aisle can have their questions answered and voices heard," DuRant said in a statement. But "the Ranking Member is concerned that allowing the banking of a federally illegal product while not doing enough to prevent the de-banking of legal industries like firearms manufacturers and energy producers sends the wrong message to the American people.” The bill's supporters struggled Tuesday to reach consensus on a key provision dealing with reputational risk. Sen. Cynthia Lummis (R-Mo.) told Eleanor Tuesday night that members were considering moving the bill without coming to an agreement on particularly controversial language. They planned to "go hash it out" after votes, she told Natalie. Among the undecided: Sen. J.D. Vance (R-Ohio). He told Natalie that he plans to "make a gametime decision" based on "a couple of interesting amendments." — And now there’s institutional cover for any would-be “no” votes. The Credit Union National Association, which backed the cannabis banking bill for many years, “now says there are changes in the new text that they do not support.” Biden in Michigan — President Joe Biden told reporters he supported a 40 percent wage increase for striking auto workers on Tuesday. Meanwhile, Ford announced it was pausing construction of a n electric vehicle battery plant in the state, writes Arianna Skibell. Coinbase is on the Hill today — Eleanor reports that Coinbase is flying in around 50 crypto execs to spur support for House Republicans' digital assets legislation. Their gameplan: divide into six groups meeting with members and staff from 15 different states, said Coinbase's head of U.S. policy, Kara Calvert. — Rep. Blaine Luetkemeyer (R-Mo.), who sits on House Financial Services, sent a letter to Gensler and FINRA President and CEO Robert Cook in advance of the hearing questioning their scrutiny of crypto firms with alleged links to Chinese government entities.
| | | | A message from Consumer Credit Card Protection Coalition:   | | | | | The main event — FTC Chair Lina Khan’s antitrust challenge against Amazon — filed Tuesday — is “the most ambitious gambit yet” in her bid to enforce liberal antitrust theories that have been embraced by the Biden administration, our Josh Sisco writes. JPMorgan settles Epstein case — From Sam: “JPMorgan Chase will pay $75 million to settle claims brought by the U.S. Virgin Islands relating to the bank’s dealings with deceased financier and sex offender Jeffrey Epstein.”
| | It wasn’t so long ago — Remember the tech stock bull run? Well, with rates set to remain higher for longer and consumer confidence flagging, shares in that sector have “wobbled all month,” writes Bloomberg’s Elena Popina. Home prices — The WSJ’s Nicole Friedman: “Home prices rose in July as low supply continued to frustrate buyers.”
| | | | HAPPENING 9/28 — INSIDE THE CANCER MOONSHOT: Join POLITICO on Thursday, Sept. 28 for an in-depth discussion on the future of cancer treatment and innovation. Hear from experts including scientists, government officials and industry leaders as we explore the critical roles played by private industry, nonprofits, the National Cancer Institute and the new Advanced Research Projects Agency for Health in achieving the Biden administration's goal of cutting the cancer death rate in half over the next 25 years. Don't miss this opportunity to dive into the progress of cancer treatments and learn about the challenges patients encounter in accessing care. REGISTER HERE. | | | | | | | | Tobin Marcus, a former adviser to Biden, has joined Wolfe Research to head its U.S. public policy and politics unit. He was previously senior U.S. policy and politics strategist at Evercore ISI. Ripple has hired Obama White House alum Lauren Belive as its new U.S. head of public policy and government. Belive previously led U.S. government relations teams at Zoom and Lyft. The Investment Company Institute has hired Lori Kearns as a director on its government affairs team. Kearns’s portfolio will include retirement security and tax policy issues and the former Democratic Senatorial Campaign Committee staffer will handle outreach to Democrats on the Hill and within the administration.
| | | | A message from Consumer Credit Card Protection Coalition: It’s never the right time to defund data security, but that’s exactly what the Durbin-Marshall Credit Card bill would do to millions of credit card transactions if it became law. With fraud and cyber crime at all time highs and the threat of a government shutdown, now is not the time for Congress to defund data security. Instead, Washington should prioritize protecting our private financial information, not make it easier for cyber criminals to hack into your wallet.
Learn more and tell Congress to say no to defunding data security by rejecting the Durbin-Marshall credit card bill. | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
