Disclosure omakase

Presented by Goldman Sachs: Delivered daily by 8 a.m., Morning Money examines the latest news in finance politics and policy.

Nov 07, 2023 View in browser   By Zachary Warmbrodt Presented by Goldman Sachs 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. QUICK FIX It’s regulator-palooza in Washington today between DC Fintech Week and SIFMA’s annual meeting. But let’s zero in on what one veteran SEC official plans to tell securities lawyers in New York this morning about the agency’s most contentious rulemaking at the moment. Our Declan Harty got an exclusive early peek at the speech. SEC Commissioner Mark Uyeda, a Republican who has served at the SEC since 2006, will make the case that the agency needs to consider re-proposing its landmark climate-risk disclosure rule to shore up its legal standing and also commit to a broader rethink of how it implements corporate reporting requirements in general. Uyeda argues that the SEC is overwhelming companies and failing to accurately account for the time and expense that goes into expanding what they’re forced to reveal publicly about their operations. “Just as the omakase menu at a Michelin-starred sushi restaurant will take longer and cost more to prepare than the mass-produced packages of sushi sold at a grocery store, drafting high-quality disclosure also imposes more time and costs on companies compared to preparing boilerplate disclosure,” he said in prepared remarks. It’s a long-running tension inside the SEC and one that’s coming to a head as the public waits for the agency to take the next step on the climate disclosure rule it proposed nearly 20 months ago. In the case of the climate rule, Uyeda says the SEC should seek further public comment and update its economic analysis if it “significantly deviates” from the proposal. It’s unclear what the SEC will do, but SEC Chair Gary Gensler has hinted at potential changes as the agency braces for lawsuits that are sure to come. In Uyeda’s view — one that has limited sway in the commission’s GOP minority but could be a roadmap for a potential lawsuit — issuing a rule that is “costly and ineffective” could paint a legal target on the regulation for violating the Administrative Procedure Act. Good morning from Miami — Your MM host is here attending the World Strategic Forum. Let me know if you’re around: zwarmbrodt@politico.com.   A message from Goldman Sachs: Minority-owned businesses already face significant challenges accessing capital. 81% of Hispanic small business owners and 85% of Black small business owners are concerned about their ability to access capital. The Federal Reserve’s Basel III Endgame proposal would make it even harder for minority-owned businesses to access loans and credit. Tell the Fed: Stop the Squeeze on Small Businesses.   Driving the day DC Fintech Week has appearances from Fed Vice Chair for Supervision Michael Barr, Acting Comptroller of the Currency Michael Hsu, Treasury Undersecretary Nellie Liang, NY DFS Superintendent Adrienne Harris and others … SIFMA’s annual meeting lineup includes Gensler, Treasury Deputy Secretary Wally Adeyemo, CFTC Chair Rostin Behnam and Sen. Bill Hagerty … Former FDIC Vice Chair Thomas Hoenig testifies at a House Financial Services hearing on international regulatory standards at 10 a.m. ... House Ways and Means holds a hearing on ESG investing at 10 a.m. … Fed Governor Christopher Waller speaks at the St. Louis Fed on economic data at 10 a.m. … Senate Banking votes on nominees at 11:30 a.m. ... FDIC Chair Martin Gruenberg will deliver the keynote address at the PCAOB International Institute on Audit Regulation Citigroup weighs deep layoffs — Managers and consultants have discussed job cuts of at least 10 percent in several major businesses as Citigroup CEO Jane Fraser works to overhaul the global bank, CNBC reports. Bank lending update — The Fed said U.S. banks broadly reported tight lending standards and weak demand in the third quarter, though the picture improved a bit compared with the previous three months, per Bloomberg. Moscow gets around oil sanctions — The WSJ reports that Russia’s oil and gas tax revenue is up significantly, as the country uses aging tankers to circumvent a Western oil price cap. It has left U.S. officials scrambling to shore up sanctions. Europe at odds over seizing Russian cash — Per our Brussels colleagues, some European governments are privately worried about the financial market impact from EU plans to use Russian assets to rebuild Ukraine.   JOIN US ON 11/15 FOR A TALK ON OUR SUSTAINABLE FUTURE: As the sustainability movement heats up, so have calls for a national standard for clean fuel. Join POLITICO on Nov. 15 in Washington D.C. as we convene leading officials from the administration, key congressional committees, states and other stakeholders to explore the role of EVs, biofuels, hydrogen and other options in the clean fuel sector and how evolving consumer behaviors are influencing sustainable energy practices. REGISTER HERE.     Markets Some good news for Treasurys — Officials from Treasury, the Fed, SEC and CFTC indicated in a new report that Treasury trading is showing signs of resilience, despite market volatility and a flood of U.S. debt, according to MarketWatch.   A message from Goldman Sachs:   China A new bailout — The NYT reports that China is shifting to providing emergency rescue loans to developing countries where it previously provided financing under the Belt and Road Initiative. “While the Belt and Road Initiative bought geopolitical clout for Beijing and helped finance economically useful projects, Chinese loans were also used to build expensive projects that have not spurred economic growth and have loaded countries with debt they are now unable to repay.” On the Hill That old ESG Month feeling — House Ways and Means this morning will be the latest GOP committee to dig into sustainable investing practices with a hearing aimed at “protecting seniors and savers from ESG activism.” The witnesses include Utah treasurer Marlo Oaks and AFL-CIO Office of Investment deputy director Brandon Rees. Oaks has said that ESG standards “measure how well a company complies with a political agenda.” Americans for Financial Reform told Chair Jason Smith and ranking member Richard Neal that the hearing is “part of a much broader, unpopular campaign against common sense investment practices.”   PLAYBOOK IS GOING GLOBAL! We’re excited to introduce Global Playbook, POLITICO’s premier newsletter that brings you inside the most important conversations at the most influential events in the world. From the buzzy echoes emanating from the snowy peaks at the WEF in Davos to the discussions and personalities at Milken Global in Beverly Hills, to the heart of diplomacy at UNGA in New York City – author Suzanne Lynch brings it all to your fingertips. Experience the elite. Witness the influential. And never miss a global beat. BE PART OF THE CONVERSATION. SUBSCRIBE NOW.     Crypto An FTX revival? — CoinDesk has a look at who’s in the running to relaunch bankrupt crypto exchange FTX. The short-list of restart bids is down to three, and a decision is expected by mid-December.   A message from Goldman Sachs: Even without the Fed’s proposed new bank capital requirements, accessing and affording capital is an ongoing challenge for small business owners. Only 29% of small business owners say their business can currently afford to take out a loan given high interest rates. - 65% of small business owners who have applied for a new business loan or line of credit in the past year have found it difficult to access affordable capital. - 31% of small business owners cite 2023 as being the most difficult year over the past four years. The 10,000 Small Businesses Voices community is calling on the Fed to reconsider implementing the Basel III Endgame. Stop the Squeeze on Small Businesses. Source: Survey of 1,240 Goldman Sachs 10,000 Small Businesses participants conducted by Babson College and David Binder Research from October 9-12, 2023. The survey included small business owners from 48 U.S. states, Washington, D.C., and Puerto Rico.     Follow us on Twitter Mark McQuillan @mcqdc Zachary Warmbrodt @Zachary Victoria Guida @vtg2 Declan Harty @ @declanharty Eleanor Mueller @eleanor_mueller Katy O'Donnell @katyodonnell_ Sam Sutton @samjsutton   Follow us

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA Please click here and follow the steps to unsubscribe.