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Banking industry lobbyists, grappling with fallout on Capitol Hill from high-profile bank failures, say they’re taking a largely skeptical approach to possible legislation, worried about new regulations especially on smaller institutions.
The issue will be at the forefront of the Senate Banking, Housing, and Urban Affairs Committee agenda this month, including a hearing today on “holding executives accountable” after the recent failures of First Republic, Silicon Valley, and other banks.
Executives from some of those banks will appear before the panel May 16: Gregory W. Becker, Silicon Valley Bank’s former CEO, Scott Shay, a co-founder of Signature Bank, and Eric Howell, Signature’s former president.
As scrutiny grows, banks can deploy large, well-connected lobbying teams, including JPMorgan with Tim Berry, a former chief of staff to Speaker Kevin McCarthy (R-Calif.).
Lobbyist Michael Williams of the Williams Group, who represents the National Bankers Association, a group of minority-owned and operated banks, said the group’s message to lawmakers is: “Please do no harm to us.” The smaller, minority-owned banks, specifically, do not want to pay for the FDIC’s shortfall, he said.
Most lawmakers, he added, are still working to figure out what went wrong with the failed banks.
The coming months will test the clout of the banking industry, whose initial strategy could be upended with more banking failures. Read the full story from Kate Ackley.
More Finance in Washington
President Joe Biden’s top economic aide, Lael Brainard, will double down on the administration’s pledge to champion competition in a speech to an anti-monopoly summit, which takes place after this week’s seizure of First Republic Bank raised fresh questions about consolidation and vulnerability in the banking industry.
It’s Jamie Dimon again. Famously the “last man standing” after the 2008 financial crisis, the JPMorgan CEO stuck around long enough to emerge victorious from the next mess
Biden has picked Federal Reserve Governor Philip Jefferson for a promotion to vice chair and will nominate economist Adriana Kugler to an open board slot, according to people familiar with the matter.
Federal Reserve Chair Jerome Powell hinted the central bank’s latest interest-rate increase could be the last one, but stopped short of declaring victory on its battle against rapid price increases.
The White House warned ahead of Biden’s meeting Tuesday with congressional leaders that a breach of the debt ceiling would “likely cause severe damage to the US economy” and that a protracted default could result in millions of jobs lost.
- The president has no public events scheduled today.
- White House Press Secretary Karine Jean-Pierre at 2 p.m. gives a briefing.
- The Senate meets at 10 a.m. to consider judicial and National Archives nominations as well as a nominee to be ambassador at large for global women’s issues.
Energy & Environment
The Senate voted Wednesday to reinstate tariffs as high as 254% on solar panels from Southeast Asia, underscoring a deep clash over continued US reliance on foreign imports to drive the nation’s renewable-energy development.
Lawmakers are moving to address an under-the-radar national security threat they say threatens US competition with China: agricultural research funding.
The Senate Wednesday approved a Republican measure that would weaken federal protections for the lesser prairie chicken under the Endangered Species Act, the latest GOP attempt to roll back Biden administration environmental rules.
Melting snowpack led to Mississippi River flooding, even as Congress reignites its debate about the federal program meant to help property owners recover. Millions of Americans rely on the National Flood Insurance Program, which is more than $20 billion in debt amid more frequent and deadly flooding driven by climate change. But broader reforms have so far proved politically intractable.
Top senators on a key environmental panel are in negotiations toward legislation to address liability fears from farmers and water treatment agencies following EPA’s proposal to regulate two forever chemicals under Superfund law.
The Senate Commerce, Science, and Transportation Committee will vote May 10 on bipartisan legislation to bolster rail safety regulations after a chemical train derailment in Ohio drew national scrutiny.
Politics, Probes and 2024
Rep. David Trone, a three-term Maryland Democrat, will run for an open Senate seat in the 2024 election and put his sure-bet House seat into play.
The powerful United Auto Workers union won’t yet endorse Biden for re-election, citing concerns that the administration’s stance on electric vehicles could end up sacrificing jobs.
Donald Trump says Elon Musk’s release of internal files at Twitter show it was illegal censorship when he was banned on the platform for stoking the Jan. 6 insurrection.
What Else We’re Reading
Major artificial intelligence companies – including Microsoft and Google – have committed to participate in the first independent public evaluation of their systems before a meeting today with Vice President Kamala Harris and top Biden administration officials.
The new generation of electric-powered air taxis under development will be regulated initially much like helicopters under plans released by regulators Wednesday.
Growing US-China tensions have unified lawmakers across the aisle seeking to advance legislation to address security, technology, and economic threats.