MORNING MESSAGE
Steve Mnuchin Is No Joe Kennedy and He’s Unfit for His New Gig
When
Franklin D. Roosevelt appointed Kennedy to serve the first chairman of the
Securities and Exchange Commission (SEC), FDR was reportedly asked why he had
appointed such a crook. “Takes one to catch one,” Roosevelt is said to have
replied. By all accounts, Kennedy did an excellent job. But there was a major
difference between Joe Kennedy’s outlook and Steve Mnuchin’s. Kennedy understood
that Wall Streeters were rascals who needed strict oversight. Mnuchin wants to
go easy on them.
MNUCHIN UP, PUZDER NEXT
Mnuchin
expected to be confirmed today. Reuters: “…no Republicans have declared
opposition, setting the stage for a party-line 52-48 vote. The vote is set for
around 7 p.m. EST.”
Expect
more Wall Streeters in the Treasury. Politico: “Senior Goldman Sachs banker
Jim Donovan is under strong consideration for deputy Treasury secretary and
could serve as Mnuchin’s number two if confirmed by the Senate, people familiar
with the matter said. Justin Muzinich, a former Morgan Stanley banker now at
Muzinich & Co., is likely to take a senior position possibly as
undersecretary for domestic finance or counselor … Economist David Malpass … is
expected to be nominated by President Trump to serve as undersecretary for
international affairs … [He] served as chief economist at Bear Stearns.”
Questions
raised about Carl Icahn’s role. NYT: “[Six Democratic] senators will raise
concerns that Mr. Icahn will work to change regulations to benefit his own
investments. They are also seeking assurances that safeguards have been put in
place to ensure that Mr. Icahn does not have access to information that is not
public that could be used to make profitable trades.”
Dems
prepare for Thursday Puzder hearing. The Hill: “He admitted to hiring a
housekeeper who was an illegal immigrant, his wife once accused him of domestic
violence (an accusation she has since retracted), and groups have attacked the
way workers are treated at his restaurants. Democrats are promising to raise
those issues … Some conservatives question whether he would be weak on
immigration enforcement…”
Corporate
lobbyists rally around Puzder. Politico: “More than 100 trade associations
have signed onto a letter of support backing Trump labor nominee Andy Puzder …
There is also pressure on Sens. Susan Collins (R-Maine) and Lisa Murkowski
(R-Alaska).”
UNPRECENTED REGULATORY ROLLBACK
“Trump
undertakes most ambitious regulatory rollback since Reagan” reports W. Post:
“The fallout is already rippling across the federal bureaucracy and throughout
the U.S. economy, affecting how dentists dispose of mercury fillings, how
schools meet the needs of poor and disabled students, and whether companies
reject mineral purchases that fuel one of the world’s bloodiest conflicts. The
campaign has alarmed labor unions, public safety advocates and environmental
activists, who fear losing regulations that have been in place for years, along
with relatively new federal mandates.”
Trump
won’t be able to use American steel for controversial pipelines. Boston
Globe: “The Dakota pipeline is almost complete, so its developers don’t need
to buy much, if any, additional pipe … As for Keystone … hundreds of miles worth
of 36-inch pipe — already purchased for the project — is stacked in a field and
waiting for construction to begin. Add to that the fact that few American
steelmakers make the type of steel required for the pipeline.”
BREAKFAST SIDES
Republicans
float health care reforms. NYT: “The administration is poised to issue a
proposed regulation to try to stabilize insurance markets, and House Republicans
are drafting legislation with a similar purpose. The regulation and the bills
are intended to hold down insurance premiums and to lure insurers back into the
public marketplaces … Insurers are seeking immediate governmental action because
they must decide by early May what kinds of health plans they will offer on the
exchanges in 2018 … Republicans in Congress are also warming to the idea of
continuing payments to insurance companies to help cover the out-of-pocket costs
for people with low incomes. House Republicans filed suit against the Obama
administration to stop these payments … and a federal district judge ruled for
the lawmakers in May.”
DNC
Chair race remains unsettled with two weeks to go. ABC: “There is also
anxiety among some in the party that the competition between Ellison and Perez
too closely resembles a proxy battle of the bitter 2016 primary. That in part is
why lesser-known candidates are getting a close look too for the chairperson’s
role … Conventional wisdom among party members seems to be that none of the
hopefuls have yet secured the majority of votes needed and so the election will
likely take multiple rounds of ballots at the end of the month.”
Progressive
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