Biden's Democratic support teeters

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Jul 08, 2024 View in browser   By Michael Stratford Presented by  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 Congress returns to Washington this week amid growing uncertainty and drama over President Joe Biden’s place atop the Democratic presidential ticket. Four more senior House Democrats, including Rep. Jerry Nadler of New York on Sunday afternoon became the latest in the party calling for Biden to abandon his reelection campaign, which has been reeling since his disastrous debate performance last month. As Daniella Diaz, Anthony Adragna and Nicholas Wu report, the new defections are “a poor omen for the Biden campaign as the entire Democratic elected apparatus prepares to return to Washington on Monday evening where lawmakers will face tough questioning about their party’s standard-bearer.” Some Democrats came to Biden’s defense over the weekend. Others stopped short of calling for his replacement but said Biden hadn’t done enough to alleviate concerns about his age and mental capacity. Meanwhile, it’s a busy week for economic and financial policymakers on the Hill. Federal Reserve Chair Jerome Powell will answer questions from lawmakers in the Senate on Tuesday and in the House on Wednesday. Treasury Secretary Janet Yellen testifies before the House on Tuesday. The Senate Banking Committee is also gearing up for a nomination hearing Thursday for Christy Goldsmith Romero, Biden’s pick to lead the Federal Deposit Insurance Corp. Goldsmith Romero, currently a CFTC commissioner, would replace longtime FDIC Chair Martin Gruenberg who agreed to step down earlier this year under fire after the release of a blistering report that cited pervasive harassment and misconduct at the bank regulator under his watch. As Zach Warmbrodt explains in a new story this morning, Goldsmith Romero is getting an unexpected boost from two corners of the financial industry — fintech and crypto — that have been increasingly at odds with the FDIC during the Biden administration. American Fintech Council CEO Phil Goldfeder, whose group has accused the FDIC of pursuing a crackdown against partnerships between banks and fintech firms, said it’s been a “privilege” to work with Goldsmith Romero. “She has proven her willingness to engage with industry leaders and a shared interest in financial inclusion through responsible innovation,” Goldfeder said. Corey Then, vice president and deputy general counsel at the crypto firm Circle, is among the CFTC tech advisory committee members backing Goldsmith Romero, praising her as “honest, thoughtful, balanced and fair” and her work as a “consensus builder.” Ari Redbord, another crypto industry representative and CFTC tech panel member has also conveyed his support to Senate Banking. “Having a deep understanding of it and really understanding the promise of technology — both what value the technology brings but also how you can use that technology to mitigate risks to craft thoughtful regulation — I think is really, really important. Christy brings that to the conversation.” IT’S MONDAY. Get in touch at mstratford@politico.com. As always, send tips and suggestions to Sam at ssutton@politico.com or on Signal at 925.216.7576.   A message from the Electronic Payments Coalition: GUARD YOUR CARD: AMERICANS LOSE WHEN POLITICIANS CHOOSE American consumers and small businesses rely on credit cards for secure, hassle-free payments – and valuable rewards. But the Durbin-Marshall Credit Card Bill threatens to strip away fraud protection and rewards programs that support families and boost our economy. Instead, mega-stores like Walmart and Target profit, leaving you vulnerable to cyber-attacks and reduced benefits. Don't let politicians jeopardize your financial security. Take action now to GUARD YOUR CARD!   DRIVING THE WEEK Tuesday … BNY Mellon CEO Robin Vince will speak at the Economic Club of Washington at 8:20 a.m. … World Bank President Ajay Banga will deliver opening remarks at the institution’s annual development economics conference at 9 a.m. … Fed Vice Chair for Supervision Michael Barr will speak at the central bank’s conference on financial inclusion at 9:15 a.m.; Fed Governor Michelle Bowman will speak at 1:30 p.m. … The Fed’s Powell will testify at the Senate Banking Committee at 10 a.m. … Yellen will testify at the House Financial Services Committee at 10 a.m. … Congressional Budget Office Director Phillip Swagel will testify about updated economic projections at the Senate Budget Committee at 10 a.m. … Wednesday ... Powell will testify at House Financial Services at 10 a.m. … CFTC Chair Rostin Behnam will testify at the Senate Ag Committee at 10 a.m. … Treasury Undersecretary for International Affairs Jay Shambaugh will discuss U.S.-China economic relations at the Council on Foreign Relations at 12 p.m. … The Treasury Department’s Financial Literacy and Education Commission will meet to discuss financial and consumer fraud at 1 p.m. … Chicago Fed President Austan Goolsbee and Fed Gov. Bowman will speak at a Chicago Fed event on the childcare industry at 1:30 p.m. … Fed Governor Lisa Cook speaks at the Australian Conference of Economists at 7:30 p.m. ET. … Thursday ... Senate Banking will hold a hearing at 10 a.m. on the nominations of Goldsmith Romero for FDIC chair; Caroline Crenshaw to be SEC commissioner; Kristin Johnson to be assistant Treasury secretary; and Gordon Ito to be a member of FSOC. … The Senate HELP Committee will hold a hearing on medical debt at 10 a.m. … Alanna McCargo, president of the Federal Home Loan Bank of San Francisco, will speak at an Urban Institute event on racial disparities in homeownership at 2 p.m. … Friday ... The House Financial Services Committee’s subcommittee on financial institutions will hold a field hearing on fintech partnerships at 10 a.m. in Lexington, Ky.   POLITICO AND WELT EVENT TUESDAY 7/9: Join POLITICO and WELT for a roundtable discussion on July 9 with the top defense officials in NATO countries that share a border with Russia, including Estonia, Latvia and Lithuania. These are the crucial officials tasked with armoring these front-line states against Vladimir Putin’s aggressive expansionism. We will discuss how they are adapting to this new period of danger and explore the future of the NATO alliance and their relationship with the United States. Register here.     On the Hill House crypto vote — The House will vote this week on overriding Biden's veto of a GOP-led resolution that would overturn SEC guidance that banks say discourages them from holding crypto, Eleanor Mueller reports. Twenty-one House Democrats helped Republicans pass the measure in May — a far call from the two-thirds needed to overrule the president. But a subsequent show of support from Senate Democrats — including Majority Leader Chuck Schumer — could shift the equation.   A message from the Electronic Payments Coalition:   Treasury Russian oil debate: Treasury Department officials have proposed new penalties on oil tankers that are helping Russia evade restrictions on its sale of oil around the world, The New York Times reports. But the effort to punish Moscow “has stalled amid White House concerns over how it would affect energy prices ahead of the November election.” Around the World ‘Bidenomics’ budding across the pond: Rachel Reeves—who was named the United Kingdom’s first female chancellor of the Exchequer on Friday after the Labour Party swept back into power—is expected to pursue an economic agenda that was influenced by Treasury Secretary Janet Yellen, The New York Times reports. Treasury said Yellen congratulated Reeves on her historic appointment during a call Friday in which the two finance officials “discussed their governments’ respective economic strategies” and vowed close coordination on a range of issues including Ukraine, the Indo-Pacific, and the Middle East. ELECTION 2024 Trump distances himself from Project 2025: Former President Donald Trump is seeking to set himself apart from a closely aligned conservative group’s policy proposals to drastically reshape the federal government in a second Trump term, CNN reports. Sen. Marco Rubio (R-Fla.), a Trump vice presidential contender, said Sunday that the project doesn’t speak for Trump. Trump’s effort to disavow the project came after the leader of the Heritage Foundation, Kevin Roberts, said last week that an ongoing revolution would “remain bloodless if the left allows it to be.” The policy roadmap drafted by Trump allies calls for significantly limiting the power and independence of federal agencies, restricting the powers of the Federal Reserve, and reversing Biden’s climate finance initiatives, among many other proposals. Spotlight on Trump’s Wall Street cash: “Duke Buchan III is emerging as Donald Trump’s secret weapon in the presidential campaign fundraising competition,” the Wall Street Journal reports. “The former hedge-fund manager and major Republican donor … has raised tens of millions of dollars, becoming the person most responsible for surging megadonor money, according to people close to the campaign.” Crypto campaign money: Multicoin Capital, a large investment firm focused on crypto, says it will give up to $1 million to boost Senate candidates who favor the industry, CoinDesk reports. The firm plans to send money through the Sentinel Action Fund PAC to support Republican Senate candidates in Nevada, Pennsylvania, Ohio and Montana.   SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, our newsletter taking you inside pivotal discussions at the most influential gatherings in the world. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.     Fly Around Bully Pulpit International is announcing this morning that it’s forming a new tax policy practice group ahead of Washington’s looming tax fight in 2025. BPI partner Scott Mulhauser and managing director Adam Hodge will lead the team.   A message from the Electronic Payments Coalition: CONGRESS: OPPOSE THE DURBIN-MARSHALL CREDIT CARD BILL Credit cards are a staple for millions of Americans, providing secure payments, fraud protection, and valuable rewards helping to pay for everyday purchases. The Durbin-Marshall Credit Card Bill threatens to dismantle these benefits, forcing our credit cards onto untrusted networks. Mega-stores like Walmart and Target stand to gain billions, while Americans lose the convenience, security, and rewards millions of hardworking families rely on to pay for everyday purchases. Congress: oppose the Durbin-Marshall Credit Card Bill. Learn more and GUARD YOUR CARD!     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

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