Banking & Finance

Justice Department sides with Trump in subpoena fight
Lawmakers have not done enough to say why they need president's financial records, administration argues

President Donald Trump filed the suit seeking to prevent his accounting firm, Mazars USA, from complying with a House subpoena for his financial records. (Caroline Brehman/CQ Roll Call file photo)

The Justice Department sided with President Donald Trump on Tuesday in his fight to stop a congressional subpoena for eight years of his financial records, telling a federal appeals court that lawmakers had not done enough to say why they need the information.

“The House’s lack of responsibility is sufficient reason for this Court to declare this subpoena invalid,” the DOJ wrote in a brief in the U.S. Court of Appeals for the D.C. Circuit.

GOP senators uneasy with Fed pick on gold, deposit insurance
Questioning a return to the gold standard and eliminating federal deposit insurance

“I'm not convinced we should switch to a gold standard anytime soon,” said Sen. Patrick J. Toomey, R-Pa., (File photo by Bill Clark/CQ Roll Call)

Republican senators have expressed concerns about Judy Shelton, one of President Donald Trump’s picks for the Federal Reserve Board, over her support for a return to the gold standard and eliminating federal deposit insurance, but, so far, are holding back from publicly opposing her nomination.

Trump tweeted his intention in early July to nominate Shelton and Christopher Waller to the two vacant seats on the seven-member Fed board. Waller, an economist at the Federal Reserve Bank of St. Louis, is seen by most observers as a conventional pick, but Shelton’s decades-long advocacy for resurrecting the Bretton Woods monetary system has put her at odds with most economists and some Republican senators. The system pegged the dollar to the price of gold and other currencies to the dollar.

Capital One hack gets attention of Senate panel, New York AG
The breach affects at least 100 million Americans and 6 million Canadians, according to the company

Senate Banking Chairman Mike Crapo said he and Letitia James, New York state Attorney General, will probe the Capital One data breach that the company reported late Monday. (Caroline Brehman/CQ Roll Call)

Senate Banking Chairman Michael D. Crapo and New York state Attorney General Letitia James said they will probe the data breach suffered by credit card issuer Capital One, which the company reported late Monday.

“I have concerns about all aspects of this,” Crapo said about the Capital One breach during a Tuesday morning hearing on cryptocurrencies. “We want to understand how this happened, how other breaches happened ... and we want to know how vulnerabilities [appear] in systems and figure out what we must do to deal with them at a policy level. I don’t have answers yet, but yes, we need to figure that out and we do have concerns about those vulnerabilities.”

Facebook’s currency plan makes fintech a tough sell in Congress
Some members are conflating disdain for Facebook with other, more vital fintech innovation, Schweikert says

House Financial Services Chairwoman Maxine Waters has criticized Facebook’s new cryptocurrency offering, Libra, calling it an “unchecked expansion” into the lives of the company’s users. (Tom Williams/CQ Roll Call)

Members of Congress who support the development of new financial technologies say their job might have gotten tougher after Facebook announced its plan to issue a cryptocurrency.

Lawmakers used hearings in both chambers this month to roundly censure Facebook’s proposed Libra, which the social media company says could provide financial services to people who can’t rely on banks.

Lawmakers hint at regulatory models for Facebook cryptocurrency
Libra: ‘Which is it, fish or fowl?’

“This looks exactly like an exchange-traded fund,” said Rep. Jim Himes, D-Conn., (File photo by Bill Clark/CQ Roll Call)

House members suggested Wednesday that Facebook Inc.‘s proposed cryptocurrency could be deemed an exchange-traded fund, a currency or a commodity, all of which could require some degree of regulatory oversight.

“What we’re struggling with is: What are you?” said Democratic Colorado Rep. Ed Perlmutter summing up a four-hour House Financial Services Committee grilling of a company executive about the proposed cryptocurrency known as Libra.

Debt limit may be reached before end of August recess, Mnuchin says
Treasury secretary formally notified Congress of the uncertainty on Friday

Treasury Secretary Steven Mnuchin said the debt limit may be breached before Congress gets back from August recess. (Tom Williams/CQ Roll Call file photo)

Treasury Secretary Steven Mnuchin put his request on paper for Congress to act on the debt ceiling before the August recess, writing to congressional leaders Friday that there’s a chance Treasury could run out of cash in early September.

“Since there is a reasonable uncertainty in projecting government cash flows, it is impossible to identify precisely how long extraordinary measures will last,” Mnuchin wrote in his four-sentence letter, referencing accounting maneuvers Treasury can engage in to carve out room under the $22 trillion debt limit.

Facebook cryptocurrency stirs worry and support in both parties
Top Democrat urges Fed and regulators to protect consumers and economy from Facebook’s ‘monopoly money’

Federal Reserve Chairman Jerome Powell, right, was peppered with questions about how the Fed would deal with Libra, Facebook’s new cryptocurrency. (Caroline Brehman/CQ Roll Call)

Facebook Inc. got a preview Wednesday of what to expect next week when executives come to testify about plans to launch Libra, a digital currency and online payment system.

At a hearing Wednesday morning, Democrats and Republicans on the House Financial Services Committee peppered Federal Reserve Chairman Jerome Powell with questions about how the central bank would respond to Libra.

No one argues for keeping marijuana illegal, but next step divides House panel
As Democrats focus on racial impact, Republicans argue for incremental steps

Rep. Karen Bass said decades of marijuana prosecutions have given millions of citizens second class status. (Tom Williams/CQ Roll Call file photo)

At a hearing on marijuana Wednesday, no one on the House subcommittee who helps write the criminal code spoke out in clear support of continuing the prohibition that has been part of federal law for decades.

“Personally I believe cannabis use in most cases is ill advised, but many things are ill advised that should not be illegal,” said California Republican Rep. Tom McClintock, the panel's acting ranking member.

GOP senators sound optimistic about Trump’s new Fed picks
They’re at least faring better than the president’s last two picks

Sen. John Kennedy, R-La., spoke highly of Federal Reserve nominee Christopher Waller. (Bill Clark/CQ Roll Call file photo)

A week after President Donald Trump tweeted his intention to nominate Judy Shelton and Christopher Waller to the Federal Reserve Board, GOP senators are expressing cautious optimism about both picks, despite Shelton’s unorthodox views on monetary policy.

They’re at least better than the president’s previous two picks — Stephen Moore and Herman Cain dropped out before they were officially nominated — said Sen. Richard C. Shelby, R-Alabama. “Well, we haven’t evaluated them yet, but the previous two were lacking in a lot of things,” he said.

How Facebook's new cryptocurrency could reshape the global economy
Fintech Beat podcast, Episode 9

Facebook's announcement that they are launching a new cryptocurrency has created a stir in the world of financial technology . (Jack Taylor/Getty Images file photo)