Latest news with #Dodd-FrankAct
Politico
07-08-2025
- Business
- Politico
Crypto crashes CFPB open banking rule
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 The Trump administration has spent months working to undo Biden-era policies loathed by big banks — such as restrictions on credit card late fees or overdraft charges. The CFPB's 'open banking' rule governing consumer data access, finalized last year by Director Rohit Chopra, by all indications was on that same chopping block. In May, Acting CFPB Director Russ Vought dropped the agency's defense of the rule in court and joined with big banks in urging a federal judge to nullify the policy entirely. But in a last-minute twist that's becoming a hallmark of Trump's second term, the crypto world stepped in. Top digital asset trade associations joined with retailers and fintech groups in urging the White House to preserve the Biden-era rule. Crypto billionaire Tyler Winklevoss took to social media to blast banks like JPMorgan Chase for fighting against the rule. David Sacks, Trump's crypo and AI czar, called the situation 'concerning.' And the president's son, Donald Trump Jr., who's also involved in crypto ventures, offered his public support, too. The result? The CFPB quickly halted its push to get a judge to kill the rule and is poised to launch an 'expedited' rulemaking to rework the policy. The bureau in the coming days is expected to release regulatory notice soliciting public input on key questions about how to reshape the policy. A CFPB spokesperson said that the administration had always planned to write a new rule governing consumer data on an accelerated basis. The crypto industry's ascendant clout in Washington adds a new wrinkle to the fight over the CFPB's 'open banking' rule as the bureau goes back to the drawing board on the policy. The Biden regulation was finalized after years of debate over how the CFPB should implement section 1033 of the Dodd-Frank Act, which gives consumers the right to access their financial data. The rule set the ground rules of a long-running battle between traditional financial institutions and fintech firms over how consumer data flows across an increasingly complex financial ecosystem of payment services and financial apps, which now include services offered by a wide range of crypto companies. Fintechs and crypto firms rely on that data-sharing — transferred through middleman data aggregators — to power their services and make it easy for customers to set up accounts and move money. A major sticking point in any future policy will be whether and how much a bank can charge financial technology firms for access to its customers' data. Such fees are prohibited under the current Biden-era rule, and fintech and crypto companies say it's important to keep requiring banks to make available that data for free. 'Open banking and consumer permissioned data-sharing are foundational to America's financial future — driving innovation, expanding competition, and empowering consumer choice,' said Penny Lee, president and CEO of the Financial Technology Association. 'Recent moves by the nation's biggest banks to impose fees on data access underscore the need for clear rules of the road for open banking.' Banks say that they need to have the ability to charge for access to data infrastructure that they invest heavily in and are responsible for keeping secure. 'Our position is clear and has not changed: maintaining the safety and security of sensitive consumer financial data has always been and will continue to be our number one priority,' said Paige Pidano Paridon, co-head of regulatory affairs at the Bank Policy Institute, which brought the legal challenge against the rule. 'One big outstanding question is why banks would still be expected to comply with the current rule that the CFPB has said it is going to substantially overhaul. This bizarre procedural situation is creating confusion and needs to be resolved.' It's Thursday — For econ policy thoughts, Wall Street tips, personnel moves or general insights, email Sam at ssutton@ Driving the day Tariff rapid fire: President Donald Trump said Wednesday he'll impose 100 percent tariffs on tens of billions of dollars of imported semiconductors used in consumer electronics and other products, but indicated he would not charge companies that commit to making chips in the U.S., Doug Palmer reports. Trump made the announcement at an event alongside Apple CEO Tim Cook, who said his company would increase its investment in the U.S. by $100 billion. Trump imposed an additional 25 percent in tariffs on India over the country's purchases of Russian oil, following through on his threat to ramp up pressure on Moscow to end the war in Ukraine. As our trade team colleagues report, those tariffs will add to the 25 percent levy Trump unveiled on India this month. Wall Street Bank execs at the White House: Citi CEO Jane Fraser and Bank of America CEO Brian Moynihan met with Trump on Wednesday to discuss plans to privatize mortgage giants Fannie Mae and Freddie Mac, Reuters reports. Moynihan's visit to the White House also comes after Trump earlier this week personally called out the executive, accusing Bank of America of rejecting him as a customer after his first term. Treasury U.S. targets popular Mexican 'narco-rapper' — The Trump administration on Wednesday sanctioned a popular Mexican rapper, El Makabelico, accusing him of laundering money on behalf of a major drug cartel operating in the country. The Treasury Department said the rapper, whose real name is Ricardo Hernandez Medrano, sent 50 percent of his royalties from streaming platforms directly to the Cartel del Noreste and that his concerts were used to launder money to the organization. A spokesperson for YouTube, where he had nearly 2.8 million subscribers, said the company 'terminated YouTube channels associated with the sanctions' announced earlier on Wednesday. A spokesperson for Spotify, where El Makabelico had more than 3 million monthly listeners, said the company was 'reviewing the decision' and would comply with any legal obligations. On The Hill Still seeing SVB ripples — Sens. Bill Hagerty (R-Tenn.) and Angela Alsobrooks (D-Md.) are pushing to amend the must-pass defense authorization bill to extend deposit insurance to transaction accounts used by businesses and municipalities. Under their bipartisan amendment, deposits would be backed by the Federal Deposit Insurance Corp. for up to $20 million if they're parked at institutions with less than $250 billion of assets. In separate statements, Hagerty said the amendment is 'vital to strengthening regional and community banks.' Alsobrooks said the change to deposit insurance would protect payroll accounts used by small businesses. In a speech earlier this year, Treasury Secretary Scott Bessent said that the administration planned to work with Congress to extend deposit insurance to business payment accounts. New push to overhaul SBA loans: Sens. Todd Young (R-Ind.) and Amy Klobuchar (D-Minn.) introduced two pieces of legislation that would expand and modernize the Small Business Administration's 504 loans, one of the agency's more popular lending programs, Katherine Hapgood reports. At the regulators A deep dive on who uses the CFPB: 'Data obtained by ProPublica through a public records request shows that many of the same Republican members of Congress who have targeted the CFPB for cuts have collectively routed thousands of constituent complaints to the agency.' Banking Deposit milestone: The Community Development Bankers Association and National Bankers Association announced that a new initiative to channel funding to banks serving low-income and minority banks had reached $100 million of bank deposits. The program, which relies on IntraFi, makes it easy for large depositors seeking to maximize FDIC insurance to place funds at more than 80 participating community development financial institutions and minority depository institutions. Jobs report Parker Mantell is now chief speechwriter and comms adviser to SEC Chair Paul Atkins. He previously was executive writer to the president at Yale University and is an NRSC press and Cavalry LLC alum. — Daniel Lippman
Time Business News
28-07-2025
- Business
- Time Business News
Whistleblower Protection: Global Laws HR Must Know
Whistleblower protection laws represent one of the most complex and rapidly evolving areas of global employment compliance, making Employer of Record (EOR) services absolutely critical for companies operating across multiple jurisdictions. The consequences of failing to properly implement whistleblower protection programs can include massive financial penalties, criminal liability for executives, and devastating reputational damage that can destroy decades of business development and stakeholder trust. Employer of Record providers offer sophisticated compliance frameworks specifically designed to navigate the intricate web of whistleblower protection laws across different countries and regulatory systems. Unlike companies attempting to manage these complex requirements independently, EOR services provide expert guidance, comprehensive policy development, and ongoing compliance monitoring that ensures full adherence to whistleblower protection obligations in every jurisdiction where they operate. The strategic importance of whistleblower compliance extends far beyond avoiding penalties—effective whistleblower programs can actually strengthen organizations by identifying problems early, preventing larger crises, and demonstrating commitment to ethical business practices. EOR providers understand that whistleblower compliance isn't just about legal requirements; it's about building sustainable, trustworthy organizations that can operate successfully in highly regulated global markets. For companies with international operations, the complexity of whistleblower laws across different legal systems, cultural contexts, and regulatory frameworks makes EOR services the only practical solution for comprehensive compliance and risk management. Whistleblower protection laws vary dramatically across jurisdictions, creating a complex compliance environment that requires sophisticated understanding and careful management. Key international whistleblower systems include: • United States: Sarbanes-Oxley Act, Dodd-Frank Act, and various industry-specific protections • European Union: EU Whistleblower Protection Directive 2019/1937 and national implementations • United Kingdom: Public Interest Disclosure Act and recent regulatory enhancements • Australia: Corporations Act whistleblower protections and Treasury Laws Amendment Act Different jurisdictions protect various types of disclosures: • Financial misconduct: Securities fraud, accounting irregularities, and financial reporting violations • Safety and environmental issues: Workplace safety violations and environmental law breaches • Corruption and bribery: Anti-corruption violations and conflicts of interest • Consumer protection: Product safety issues and consumer fraud Whistleblower laws typically provide: • Retaliation prohibitions: Legal protection against adverse employment actions • Confidentiality safeguards: Protection of whistleblower identity and disclosure content • Financial incentives: Monetary rewards for qualifying disclosures in some jurisdictions • Legal remedies: Compensation and reinstatement for retaliation victims EOR providers navigate this complexity through: • Multi-jurisdictional expertise: Deep knowledge of whistleblower laws across all operating countries • Integrated compliance programs: Comprehensive policies that meet requirements in all relevant jurisdictions • Ongoing monitoring: Continuous tracking of legal changes and compliance obligations • Risk management: Professional assessment and mitigation of whistleblower-related risks Employer of Record services provide comprehensive whistleblower compliance programs that ensure full legal adherence while creating effective reporting and response mechanisms. EOR providers create: • Multi-jurisdictional policies: Comprehensive policies that comply with laws in all operating countries • Cultural adaptation: Policies adapted to local business cultures and communication styles • Language accessibility: Policies available in local languages and understandable formats • Regular updates: Ongoing revision to reflect changing legal requirements and best practices Comprehensive reporting mechanisms include: • Multiple reporting channels: Various options including hotlines, web portals, and in-person reporting • Anonymous reporting capabilities: Secure systems that protect whistleblower identity • Third-party administration: Independent operators to ensure credibility and objectivity • 24/7 availability: Round-the-clock access to reporting systems across all time zones Professional investigation procedures include: • Independent investigation teams: Qualified investigators without conflicts of interest • Standardized procedures: Consistent investigation processes that meet legal requirements • Confidentiality maintenance: Strict protocols for protecting sensitive information • Documentation standards: Comprehensive record-keeping that supports legal compliance Employee protection measures include: • Retaliation monitoring: Active surveillance for potential adverse actions against whistleblowers • Legal support: Access to legal counsel and representation for protected disclosures • Career protection: Measures to prevent negative impact on advancement and opportunities • Counseling services: Emotional and professional support for employees making disclosures Different industries face unique whistleblower compliance challenges that require specialized knowledge and tailored EOR solutions. Financial institutions must address: • Securities law requirements: SEC whistleblower programs and FINRA reporting obligations • Banking regulations: Anti-money laundering and banking compliance reporting requirements • International coordination: Cross-border financial regulations and reporting obligations • Customer protection: Consumer financial protection and fraud reporting requirements Healthcare organizations need compliance with: • Patient safety reporting: Medical error disclosure and patient safety improvement programs • FDA regulations: Drug safety reporting and clinical trial compliance requirements • Healthcare fraud: Medicare/Medicaid fraud reporting and compliance programs • Research integrity: Scientific misconduct reporting and research compliance requirements Tech companies must manage: • Data privacy violations: GDPR and other privacy law violation reporting requirements • Cybersecurity incidents: Security breach disclosure and incident reporting obligations • Platform responsibility: Content moderation and platform safety reporting requirements • Antitrust compliance: Competition law violation reporting and compliance programs Industrial companies face: • Environmental compliance: EPA and environmental law violation reporting requirements • Workplace safety: OSHA and occupational safety violation reporting obligations • Product safety: Consumer product safety reporting and recall procedures • Supply chain responsibility: Third-party compliance and supply chain monitoring requirements International operations create unique whistleblower compliance challenges that require sophisticated coordination and management across multiple legal systems. Complex issues include: • Competing legal requirements: Different obligations in multiple countries for the same situation • Confidentiality conflicts: Varying confidentiality requirements that may conflict across jurisdictions • Investigation coordination: Managing investigations that span multiple countries and legal systems • Remediation complexity: Addressing violations that affect operations in multiple jurisdictions International challenges include: • Cultural attitudes: Different cultural views on reporting misconduct and challenging authority • Language barriers: Communication challenges that may inhibit effective reporting • Trust issues: Varying levels of trust in institutions and reporting systems across cultures • Local customs: Business practices that may conflict with whistleblower protection requirements Cross-border considerations include: • Data transfer restrictions: Limitations on transferring personal data across international boundaries • Privacy law compliance: GDPR and other privacy laws affecting whistleblower information handling • Confidentiality requirements: Balancing disclosure obligations with privacy protection requirements • Investigation limitations: Restrictions on cross-border investigation activities and information sharing EOR providers address these challenges through: • Unified global programs: Comprehensive policies that work across all jurisdictions • Local adaptation: Customization for local laws and cultural requirements • Coordinated response: Integrated investigation and response capabilities across borders • Expert legal support: Access to international legal expertise for complex cross-border issues EOR providers leverage advanced technology to enhance whistleblower compliance and create more effective reporting and response systems. Modern systems provide: • Multi-channel integration: Unified platforms that support various reporting methods • Mobile accessibility: Smartphone and tablet access for convenient reporting • Secure encryption: Advanced security measures that protect sensitive information • Anonymous communication: Technology that enables ongoing anonymous dialogue Sophisticated analytics include: • Pattern recognition: AI systems that identify trends and patterns in misconduct reporting • Risk assessment: Automated evaluation of disclosure significance and investigation priority • Automated routing: Intelligent systems that direct reports to appropriate investigation teams • Predictive analytics: Technology that identifies potential compliance risks before they materialize Comprehensive management includes: • Workflow automation: Automated processes for investigation management and tracking • Document management: Secure storage and organization of investigation materials • Communication tracking: Complete records of all communications related to investigations • Outcome monitoring: Tracking of investigation results and corrective actions Advanced monitoring includes: • Real-time dashboards: Executive visibility into whistleblower program performance • Regulatory tracking: Automated monitoring of changing legal requirements • Performance metrics: Analytics on program effectiveness and compliance performance • Audit support: Comprehensive documentation and reporting for regulatory examinations Effective whistleblower compliance requires comprehensive education and awareness programs that ensure all employees understand their rights, obligations, and available resources. Comprehensive training includes: • Legal rights awareness: Education about whistleblower protections and employee rights • Reporting procedures: Detailed instruction on how to make protected disclosures • Retaliation recognition: Training on identifying and reporting potential retaliation • Confidentiality understanding: Education about privacy protections and limitations Supervisory education covers: • Legal obligations: Manager responsibilities for preventing retaliation and supporting compliance • Response protocols: Proper procedures for handling employee disclosures and concerns • Investigation cooperation: Guidelines for supporting independent investigations • Culture building: Creating environments that encourage ethical behavior and reporting International considerations include: • Local customization: Training adapted to local cultural norms and communication styles • Language accessibility: Training materials available in local languages • Cultural sensitivity: Understanding of local attitudes toward authority and disclosure • Regional examples: Case studies and examples relevant to local business environments Continuous education includes: • Regular updates: Periodic training on new requirements and program changes • Communication campaigns: Ongoing awareness efforts to maintain program visibility • Success stories: Sharing positive outcomes from effective whistleblower programs • Feedback collection: Regular assessment of training effectiveness and improvement needs EOR services provide comprehensive risk management strategies that minimize exposure while ensuring effective response to whistleblower disclosures. Risk management includes: • Compliance audits: Regular assessment of whistleblower program effectiveness • Gap analysis: Identification of potential compliance weaknesses and improvement opportunities • Benchmark studies: Comparison with industry best practices and regulatory expectations • Scenario planning: Preparation for various types of whistleblower situations and responses Effective response includes: • Immediate assessment: Rapid evaluation of disclosure significance and required actions • Investigation management: Professional coordination of investigation activities • Stakeholder communication: Appropriate notification of relevant parties and authorities • Corrective action: Implementation of necessary remedial measures and process improvements Compliance support includes: • Regulatory notification: Proper reporting to relevant government agencies and authorities • Legal representation: Access to specialized legal counsel for complex cases • Settlement negotiation: Professional support for resolving whistleblower-related disputes • Enforcement cooperation: Coordination with regulatory investigations and enforcement actions Protection strategies include: • Communication planning: Coordinated messaging to protect organizational reputation • Stakeholder engagement: Proactive communication with investors, customers, and partners • Media relations: Professional handling of public attention and media inquiries • Recovery planning: Strategies for rebuilding trust and moving forward after incidents The complexity and high stakes of global whistleblower compliance make EOR services essential for any company operating internationally. Employer of Record providers offer the expertise, technology, and comprehensive support necessary to navigate complex whistleblower protection requirements while building effective programs that support ethical business practices and regulatory compliance across all jurisdictions. TIME BUSINESS NEWS
USA Today
15-07-2025
- Business
- USA Today
Building Trust in the Financial Advice Industry: What Changed After 2008?
Oakbrook Terrace, Illinois / Syndication Cloud / June 25, 2025 / Goldstone Financial Group Key Takeaways Regulatory Overhaul: New fiduciary standards and disclosure requirements have impacted advisor accountability New fiduciary standards and disclosure requirements have impacted advisor accountability Documentation Standards: Written agreements and transparent fee structures have become the industry norm Written agreements and transparent fee structures have become the industry norm Client Protection: Improved oversight and recourse options provide stronger investor safeguards Improved oversight and recourse options provide stronger investor safeguards Professional Standards: Continuing education and licensing requirements elevated advisor qualifications Continuing education and licensing requirements elevated advisor qualifications Technology Integration: Digital platforms created unprecedented transparency in portfolio management Today, talking to a financial advisor is completely different from the pre-2008 era. The wild west days of unregulated advice and hidden fees have given way to a more professional, transparent industry built on accountability. This transformation was born from necessity. The 2008 financial crisis didn't just crash markets—it shattered the public's faith in financial professionals. Many surveys have found that Americans lost trust in their financial institutions, with them questioning whether their advisors were working in their best interests or simply chasing commissions. The Great Regulatory Reset Before 2008, many financial advisors operated under a 'suitability' standard—meaning they only had to recommend investments that were suitable for clients, not necessarily the best options available. This loophole allowed advisors to steer clients toward higher-commission products that benefited the advisor more than the investor. The Dodd-Frank Act and subsequent regulations changed everything. The fiduciary standard now requires many advisors to act in their clients' best interests, period. This isn't just a suggestion—it's a legal obligation with real consequences for violations. Modern investors can verify whether their advisor operates under fiduciary standards, something that was rarely discussed before the crisis. Legitimate financial professionals now welcome these requirements because they eliminate conflicts of interest and build stronger client relationships. From Handshake Deals to Bulletproof Documentation The pre-2008 era often relied on verbal agreements and vague promises. Today's financial advisory industry runs on documentation. Every recommendation, fee structure, and potential conflict of interest must be disclosed in writing. This shift protects both parties: clients know exactly what they're paying for and what services they'll receive, and advisors benefit from clear expectations and reduced liability. Fee-only structures have become more common, eliminating the confusion around commission-based compensation that plagued the industry. Professional firms now provide detailed investment policy statements, regular performance reports, and clear explanations of how fees are calculated. This transparency was rare before the crisis but is now standard practice among reputable advisors. Technology as the Great Equalizer Perhaps the biggest change has been technology's role in creating transparency. Before 2008, many investors received quarterly statements by mail and had limited visibility into their portfolios between reporting periods. Today's clients can access their accounts 24/7, view real-time performance data, and track exactly how their money is being managed. This constant visibility makes it nearly impossible for unethical advisors to hide poor performance or inappropriate investments. Digital platforms also enable better communication between advisors and clients. Regular updates, educational content, and detailed reporting have become standard features that help build trust through consistent transparency. The New Professional Standard The crisis exposed a troubling reality: many people calling themselves 'financial advisors' lacked proper credentials or continuing education. The industry response has been a dramatic elevation in professional standards. Modern financial advisors must maintain licenses, complete ongoing education requirements, and adhere to strict ethical codes. Regulatory bodies like FINRA and the SEC maintain public databases where investors can verify an advisor's background, credentials, and any disciplinary actions. Established professionals like Anthony Pellegrino of Goldstone Financial Group exemplify this new standard of transparency, openly sharing credentials and maintaining clear documentation of their approach to client relationships. This openness reflects how the industry has embraced accountability as a competitive advantage. Client Protection Gets Teeth Pre-2008 investors had limited recourse when advisors acted inappropriately. Today's regulatory framework provides multiple layers of protection, from enhanced oversight to improved dispute resolution processes. The Securities Investor Protection Corporation (SIPC) expanded coverage, and many firms carry additional insurance to protect client assets. Regulatory examinations became more frequent and thorough, with real consequences for violations. These protections mean investors can feel more confident working with properly credentialed advisors who operate under current regulatory standards. Background Checks Became the Norm One of the most significant changes post-2008 has been the normalization of background verification. Before the crisis, many investors never thought to research their advisor's history or credentials. Today, it's considered standard due diligence. Regulatory databases now make it easy for investors to check an advisor's licensing status, employment history, and any disciplinary actions. The Central Registration Depository (CRD) system provides public access to information that was previously difficult to obtain. Legitimate advisors not only accept this scrutiny—they encourage it. Professional firms often provide direct links to their regulatory records and maintain detailed biographies of their team members. This transparency has become a mark of credibility rather than something to hide. The Education Revolution The crisis revealed that many investors lacked basic financial literacy, making them vulnerable to unsuitable advice. The industry response included a massive push toward investor education and advisor continuing education requirements. Today's financial professionals must complete regular training on ethics, regulations, and best practices. Many firms have embraced educational content as a way to build trust with clients. Rather than keeping investment strategies mysterious, modern advisors explain their reasoning and help clients understand the decision-making process. This educational approach serves multiple purposes: it builds client confidence, reduces miscommunication, and demonstrates the advisor's expertise. Clients who understand their investments are more likely to stick with their long-term strategy during market volatility. Fee Transparency Becomes Standard Perhaps nothing damaged trust more than hidden fees and unclear compensation structures. Before 2008, many investors had no idea how their advisors were compensated or what they were paying for various services. Today's regulatory environment requires detailed fee disclosure. Advisors must explain not just what they charge, but how those fees are calculated and when they're assessed. Investment products must clearly state their expense ratios and any additional costs. This transparency has led to more competitive pricing and better value for investors. When fees are clearly disclosed, advisors must justify their value proposition, leading to improved service quality across the industry. Risk Management Gets Serious The 2008 crisis taught harsh lessons about risk management and diversification. Many investors discovered they were far more exposed to risk than they realized, often because their advisors hadn't properly explained portfolio concentration or correlation risks. Modern financial advisory has embraced sophisticated risk assessment tools and stress testing. Advisors now regularly review portfolio risk levels and explain how different market scenarios might affect client investments. This proactive approach helps prevent the kind of surprises that devastated portfolios during the crisis. Professional advisors also maintain errors and omissions insurance and work with registered investment advisor firms that carry additional protections for client assets. These safeguards provide multiple layers of security that weren't common before 2008. The Trust Dividend The financial advisory industry's transformation since 2008 has created what experts call a 'trust dividend.' Firms that embrace transparency, maintain proper credentials, and operate under fiduciary standards tend to attract more clients and build stronger long-term relationships. This shift rewards legitimate professionals while making it harder for unqualified individuals to operate in a space where transparency and client education are viewed as competitive advantages rather than regulatory burdens. The result is an industry that better serves investors' needs while maintaining the professional standards clients deserve. Modern advisory relationships are built on mutual respect, clear communication, and shared understanding of goals and risks. What This Means for Today's Investors The post-2008 regulatory environment has created unprecedented protections for investors, but these safeguards only work when clients choose properly credentialed advisors who operate under current standards. Today's investors have access to more information than ever before. Regulatory databases, fee disclosure documents, and professional credentials are all publicly available. The challenge isn't finding information—it's knowing how to evaluate it and what questions to ask. Legitimate financial advisors welcome questions about their background, methodology, and fee structure. They provide clear documentation, maintain proper licenses, and operate under fiduciary standards. Most importantly, they view client education as an essential part of their service. For investors seeking financial guidance, the lesson is clear: work with advisors who embrace the post-2008 standards of transparency and accountability. The tools to verify these qualifications are readily available, and reputable professionals will encourage their use. The financial advisory industry's evolution since 2008 has created better outcomes for investors willing to do their homework and work with consumer-reviewed and credentialed professionals who operate under the highest ethical standards. Goldstone Financial Group contactus@ +1 630 620 9300 18W140 Butterfield Road Oakbrook Terrace Illinois 60181 United States
The Hill
20-06-2025
- Business
- The Hill
Senate parliamentarian knocks pieces out of Trump's megabill
Senate Parliamentarian Elizabeth MacDonough has ruled that several key pieces of the massive bill to implement President Trump's agenda run afoul of the Byrd Rule and must be taken out of the package to allow it to pass with a simple majority vote on a special procedural fast-track. The parliamentarian ruled against several provisions under the jurisdictions of the Senate Banking, Environment and Public Works and Armed Services Committees. These included a provision that would have placed a funding cap on the Consumer Financial Protection Bureau (CFPB), which would have cut $6.4 billion from the agency by reducing its maximum funding to zero percent of the Federal Reserve's operating expenses. The creation of the CFPB was one of the central reforms of the Dodd-Frank Act that Democrats passed in the wake of the 2008 financial crisis. She also ruled against language cutting $1.4 billion in costs by reducing the pay of Federal Reserve staff, cutting $293 million by reducing the Office of Financial Research funding and cutting $771 million by eliminating the Public Company Accounting Oversight board. Sen. Jeff Merkley (Ore.), the ranking Democrat on the Senate Budget Committee, touted the parliamentary rulings. 'The Senate Parliamentarian advised that certain provisions in the Republicans' One Big, Beautiful Betrayal will be subject to the Byrd Rule – ultimately meaning they will need to be stripped from the bill to ensure it complies with the rules of reconciliation,' Merkley said. 'As much as Senate Republicans would prefer to throw out the rule book and advance their families lose and billionaires win agenda, there are rules that must be followed and Democrats are making sure those rules are enforced,' he added. Senate Republicans will need to remove the provisions from the bill or otherwise would have to muster 60 voters to overcome a point of order against the bill. Senate Republicans hold a 53-47 seat majority. Senate Majority Leader John Thune (R-S.D.) could opt to override the parliamentarian's ruling with a simple majority vote on the floor establishing a new Senate precedent, but he has indicated he does not plan to do that. The parliamentarian ruled that several sections of the bill under the jurisdiction of the Environment and Public Works Committee also violated the Byrd Rule. She ruled against the repeal of funding authorizations in the Inflation Reduction Act and the repeal of the Environmental Protection Agency's multipollutant emissions standards for light-duty and medium-duty vehicles for model years 2027 and later. She also ruled against a provision under the Armed Services panel's jurisdiction that would reduce appropriations to the Department of Defense if spending plans are not submitted on time.
Politico
12-06-2025
- Business
- Politico
GOP targets Treasury's risk-watching data hub
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 Republicans in Congress are looking to dismantle a small but powerful government research office that was tasked with detecting risks lurking across the financial system in the wake of the 2008 crisis. Both chambers' versions of President Donald Trump's 'big beautiful bill' include a provision that would virtually shut down the Treasury Department's Office of Financial Research. The independent agency, which was created by the Dodd-Frank Act, is charged with collecting data and analyzing potential risks that are emerging throughout the financial system and that cut across the jurisdiction of various regulators. The office, which has subpoena power to seek data from financial companies, regularly publishes information on hedge funds, money market funds, and other corners of financial markets. But Republicans say the office is redundant and produces unnecessary and duplicative research. They say other regulatory agencies already have all the research firepower they need. Sens. Ted Cruz (R-Texas) and Mike Braun (R-Ind.) in recent years have repeatedly introduced legislation to eliminate the Office of Financial Research entirely, criticizing it as a 'useless and unaccountable' office within Treasury. And during Trump's first term, Treasury took steps to defang the office. The latest effort wouldn't outright abolish the research office, whose operating budget for the current fiscal year is about $110 million. But House and Senate Republicans are proposing to drastically cut the annual assessments on big financial institutions that fund the office and the related Financial Stability Oversight Council, an interagency body of top regulators. The provision, according to Senate aides working on the bill, is designed to limit funding to only what's required to operate FSOC and allow the research office to continue collecting data needed for a key interest rate benchmark that's widely used throughout the global economy. That benchmark, the Secured Overnight Financing Rate, or SOFR, is based on data collected by the research office on the market for Treasury repurchase agreements. The provision was intentionally designed to make sure the office could continue to engage in the data collection necessary to produce the SOFR, the Senate aides said, adding that they've received technical feedback from Treasury on the issue. Gutting most of the research office's functions would save about $300 million over 10 years, according to Republicans on the Senate Banking Committee. But proponents of the office are sounding the alarm over the proposal. Sen. Jack Reed (D-R.I.), a member of the Banking Committee who championed the creation of the office, said the GOP effort to eliminate it was part of a broader attack on 'independent, authoritative experts.' The goal of the office, he told our Katherine Hapgood, was 'an independent agency that could do analysis of a whole host of issues and anticipate problems, not just react to them.' Patrick Woodall, managing director for policy at Americans for Financial Reform, said slashing the research office would cut off 'unique modeling and monitoring tools' that are critical to understanding where risk is building up in the financial system, from banks, private credit or other corners of the market. The rhetoric is about 'tightening our belts and austerity, but the reality is that the impact is not mostly budgetary,' he said. 'The impact is overwhelmingly about our ability to actually monitor the financial system for growing risk that poses potentially very serious impacts on the economy.' Richard Berner, who was the first director of the Office of Financial Research during the Obama administration, said defunding the agency would be a mistake. 'We learned in the financial crisis, and in other events that have followed the financial crisis, like the banking turmoil of a couple years ago, that we need to look across the financial system and look at it as a system, rather than piecemeal,' he said. 'FSOC was set up to exchange ideas, exchange information, and exchange analysis looking across the system,' Berner said. 'OFR is the lubricant that makes all that work, by providing data that look across the system, and providing analysis that others might not have the horsepower to do or the bandwidth to do.' IT'S THURSDAY — Drop me a line at mstratford@ And, as always, send your tips, suggestions and personnel moves to Sam at ssutton@ Driving the day Stablecoin bill advances; Landmark cryptocurrency legislation cleared another Senate procedural hurdle on Wednesday, inching the upper chamber closer to a vote on final passage following weeks of delays and hiccups, Jasper Goodman reports. The Senate voted 68-30 to move forward on a substitute amendment that includes an array of changes to the original bill Republicans agreed to last month in order to win over the Democratic support necessary to pass the legislation. The breakdown: Eighteen Democrats joined with Republicans to advance the motion— including Sens. Andy Kim of New Jersey and John Hickenlooper of Colorado, who voted 'no' on the last procedural motion on the bill. Sen. Lisa Blunt Rochester (D-Del.) flipped to a 'no' on Wednesday after supporting the previous procedural motion. What's next: The vote sets the Senate up to adopt the new base text and then begin voting on the underlying bill later this week. It looks increasingly unlikely that Majority Leader John Thune (R-S.D.) will allow further votes on amendments. On The Hill Bessent on Fed chair talk: Treasury Secretary Scott Bessent said Wednesday he would like to continue serving in his current job through the end of Trump's term in office amid a Bloomberg report that he may be in the running to be the next Federal Reserve chair. 'I am happy to do what President Trump wants me to do,' Bessent said during the hearing. 'And I think that we are making great progress at Treasury.' Meanwhile, Bessent also spent time before the House Ways and Means Committee defending the so-called revenge tax in the GOP megabill. The provision has attracted criticism from Wall Street that it could dampen foreign investment, Bernie Becker reports. The revenge tax, more formally known as Section 899, would target countries that enacted policies deemed to be discriminatory – like digital services taxes and a mechanism known as the undertaxed profits rule in the global tax agreement, which would allow other countries to tax U.S.-based businesses under some circumstances. Bessent said it was 'unacceptable' that the global tax deal negotiated by the Biden administration gave other countries new avenues to tax American companies. 'This bill will allow us to prevent our corporate revenues from being drained into foreign treasuries,' he said. Trump's tax chief pick advances: Billy Long's nomination to be IRS commissioner cleared a Senate procedural hurdle on a party-line vote of 53-46, Bernie Becker reports. The Senate is slated to take a final vote to confirm Long, a former six-term congressman from Missouri and longtime Trump supporter, today at 12:30 p.m. At the regulators A dismissal on the horizon? — Attorneys for Patrick Orlando, the financier who helped bring Trump's social media company public on Wall Street, wrote in a court filing Wednesday, seen by POLITICO, that the SEC staff has proposed a complete dismissal of the agency's case against the former SPAC CEO, Declan Harty reports. The SEC alleged last year that Orlando falsely represented that his blank-check company had not engaged in talks with potential merger targets before going public in 2021, despite having had 'lengthy conversations' with Trump Media & Technology representatives. Orlando's attorneys and the SEC previously revealed that they had struck 'an agreement in principle' to resolve the matter, but the details were not clear at the time. The deal still hinges on approval by the agency's commissioners. Hedge fund rules delayed: The SEC voted on Wednesday to punt the compliance deadline for new hedge fund reporting requirements until October, in a last-minute reprieve for Wall Street, Declan Harty reports. The rule changes, jointly adopted by both the SEC and CFTC last year, were designed to provide financial regulators with a better look at the portfolios, exposure and risk performance of certain private fund advisers who have become key players in the markets. TRADE CORNER Inside Trump's China 'deal' – Trump on Wednesday touted a 'deal' with China that's largely the same agreement that the two countries agreed to last month. As POLITICO's Daniel Desrochers, Ari Hawkins, Phelim Kine and Megan Messerly write, initial readouts of the handshake agreement underscore just how far the Trump administration is from achieving its larger goals in the trade negotiations with Beijing. The International Scene World Bank ends nuclear ban: The World Bank now has the authority to finance nuclear energy and is moving closer to reentering the space after Ajay Banga, the bank's president, presented a 'balanced by design' energy proposal to the board of directors on Tuesday. As Katherine Hapgood reports, the World Bank's reentry to financing nuclear energy projects following a more than 60-year absence is part of a new strategy to increase countries' access to electricity 'in ways that are both practical and responsible.' The strategy has won praise from the Trump administration. Treasury Student loan staff detailed to Treasury: The Education Department struck agreements to send billions of dollars to the Labor Department to administer a suite of education grants and detail several agency employees to the Treasury Department to help manage collections on federal student loans, POLITICO's Juan Perez Jr., Rebecca Carballo, and Nick Niedzwiadek report. The agreement with Treasury was finalized in April, according to documents that identified nine Education Department employees — including a person originally assigned to work as part of Elon Musk's DOGE effort — who are detailed to the Treasury Department as advisers. The detailees will 'support Federal Student Aid functions performed in partnership with Treasury,' according to the agreement. Jobs report Andy Kampf, formerly of Klarna, has joined Klaros as a partner.
