OVERNIGHT FINANCE: GOP awaits Obama immigration plan

TOMORROW STARTS TONIGHT: HERITAGE WARNS GOP ON AMNESTY ‘BLANK CHECK.’ Rebecca Shabad for The Hill: “If House Republicans choose to block President Obama’s executive action on immigration with a rescission bill next year, it would be a ‘blank check’ for amnesty, Heritage Action said Wednesday.” http://bit.ly/1xqKKh0.

{mosads}ALL EYES will be on President Obama tomorrow as he unveils his long-awaited immigration action. Justin Sink sets the stage: “President Obama will announce his executive actions on immigration in a prime-time address to the nation on Thursday night… Obama has invited Democratic leaders to the White House on Wednesday night for dinner to discuss the action he’ll take… White House press secretary Josh Earnest said…

“In all, 18 members of Congress were invited to the White House, according to Earnest. Aides for House Speaker John Boehner (R) and Senate Minority Leader Mitch McConnell (R) say they weren’t invited to the dinner. Obama said the 8 p.m. address will be followed by a trip to Las Vegas, where he’ll speak at Del Sol High School on Friday…

— WHAT WILL OBAMA UNVEIL? Sink reports: “It’s unclear exactly what executive actions Obama will announce. Multiple reports have suggested he is poised to dramatically expand his deferred action program, allowing the parents of children who are legal residents or citizens of the United States to avoid deportation proceedings and receive work permits.

“Obama might also expand the eligibility for the current deferred action program, which allows immigrants who were brought to the United States illegally as children to remain in the country and work. The president is also poised to expand how the federal government issues specialty visas for high-tech workers. In total, an estimated 4 million to 5 million illegal immigrants could be eligible for the program.” http://bit.ly/1qYcLpZ

THIS IS OVERNIGHT FINANCE. Tweet: @kevcirilli;email: kcirilli@digital-stage.thehill.com; and subscribe:http://digital-stage.thehill.com/signup/48.

FED MINUTES: NO NEW CLUES ON INFLATION. Vicki Needham reports: “Federal Reserve officials stuck with their plan last month to end massive monthly bond purchases because of an improving economy and labor market conditions. Central bank policymakers said that economic activity expanded at a moderate pace between July and September, and that labor market conditions had improved, according to the Oct. 28-29 minutes released on Wednesday…

“Central bank policymakers also decided to wait to change wording on the timing for raising interest rates to avoid any possible misunderstandings by financial markets. Most agreed that it would be helpful to continuing saying a ‘considerable time’ about how long the Fed would leave interest rates at or near zero.” Vicki’s story: http://bit.ly/1uStHDw.

But which Fed-watchers would think that? …

— HOW IT PLAYED: USA Today, “Fed minutes show debate on low rates pledge.” … ABC News, “U.S. Stocks Drift Lower After Release of Fed Minutes … NY Times, “Fed Sees Limited Impact From Overseas Weakness and Market Turmoil.” … WSJ, “With Wary Eye on Global Tumult, Fed Opted to Stay on Policy Path for Now.”

— FED TAKES ON EBOLA. Yep, Ebola made the Fed minutes: “Worries about a possible spread of Ebola also appeared to weigh on market sentiment somewhat at times,” according to the minutes. Full meeting minutes: http://1.usa.gov/1yTp3Er.

— RT @BenLeubsdorf, Federal Reserve reporter for WSJ: “Yes, the Fed is aware you are scared of Ebola.”

QUOTABLE, Sen. Elizabeth Warren (D-Mass.) speaking at the Center for American Progress earlier today in Washington: “Our country is headed in the wrong direction… The American dream is slipping out of reach… There is a long way to go before Democrats can reclaim the right to say we’re working for America’s people … but don’t forget the good news: our agenda is America’s agenda.” The Hill’s Pete Schroeder: http://bit.ly/1uSw60T.

NOTABLE: WARREN VS. WATT ON HOUSING FINANCE. The could-be 2016 presidential candidate and newest member of Democratic leadership was in full-on populist mode at a Senate Banking Committee hearing today. She took on Federal Housing Finance Agency (FHFA) Director Mel Watt, a former House Democrat appointed by President Obama.

Watt had announced earlier this year he was going to enact a plan that makes it easier for lower-income Americans to borrow money to purchase homes. But he hasn’t moved on the plan. The Hill’s Vicki Needham was at the hearing and reports what happened next:

“Warren bluntly asked [Watt…] why he has not acted Wednesday, citing studies she said showed reductions in loan principal could financially help both homeowners and mortgage giants Fannie Mae and Freddie Mac.

— WARREN: “I’ve asked about this repeatedly and you said you’d look into allowing Fannie and Freddie to engage in principal reduction, you said it again today,” Warren said at a Senate Banking Committee hearing in a tense exchange. “You’ve been in office for nearly a year now and you haven’t helped a single family, not even one, by agreeing to a principal reduction… I want to know why this has not been a priority for you.”

— WATT: “It’s just a very difficult issue.” Read Vick’s story: http://bit.ly/1yTY5wk.

The exchange comes as the industry is still in the dark about what’s in store for housing reform in the new Congress. But if today’s hearing is any indication, Warren will look to raise her voice on the issue, despite being in the minority party in the next Congress.

TERRORISM INSURANCE WATCH: CAN CHUCK SCHUMER BEAT JEB HENSARLING? All signs are still pointing to a short-term reauthorization. My wonky exclusive for the hometown paper: “Sen. Charles Schumer (D-N.Y.) and House Financial Services Committee Chairman Jeb Hensarling (R-Texas) met Tuesday night to try and hammer out a deal on extending Congress’s terrorism insurance program but were unable to reach an agreement…  

— SOURCE FAMILIAR WITH MEETING: “Hensarling said if we can’t agree he will do a short-term bill which is a nonstarter and not supported by industry… Hensarling was pushing the same proposal that he can’t get passed in the House.”

— HENSARLING WILLING TO COMPROMISE ON TRIGGER: One of the reforms Hensarling is pushing would raise the threshold for the government to step in after a massive terrorist attack. Currently the trigger is $100 million, which Hensarling wants to raise to $500 million. An industry source familiar with the meeting said Hensarling would likely be willing to set the threshold at $400 million.

ON-TAP FOR TOMORROW: LEVIN’S COMMODITIES HEARING. David Shepardson for The Detroit News: “A Senate committee says Wall Street bank Goldman Sachs manipulated aluminum stockpiles at Metro Detroit warehouses in a practice that has likely added ‘billions’ to the cost of beer cans and cars.”

“The Senate Permanent Subcommittee on Investigations chaired by Sen. Carl Levin … spent two years investigating commodity transactions from Wall Street banks Goldman Sachs & Co., JP Morgan Chase & Co. and Morgan Stanley involving aluminum, uranium, copper operating coal mines, along with oil and natural gas pipelines…

“In essence, by using cancellations of major orders and transfers of aluminum, Metro International was able collect more in rent because of long delays in getting the aluminum out of warehouses. In May, the queue to move metal hit 674 days — up from 100 days in early 2012…

“The committee will hold a hearing Thursday with Christopher Wibbelman, the president and CEO of Metro International; Jacques Gabillon, head of global commodities at Goldman Sachs; and others. On Friday, the committee will hear from Dan Tarullo, a member of the Federal Reserve Board and the acting enforcement director at the Federal Energy Regulatory Commission.” http://bit.ly/11vdico.

— The Hill’s Pete Schroeder: “In a response to the report, Goldman said that most of the aluminum stored in the facility was not blocked by lengthened lines, and argued that metal movements were independent decisions of clients…

Schroeder has more: “Beyond increased costs, the report also argues that heavy investments in physical commodities expose banks — and potentially taxpayers — to unprecedented risks. A disaster like a nuclear meltdown or mine collapse at a facility owned by a bank could put the firm on the hook for major liability outside what financial firms typically navigate, the report argued.”

AND ITS NOT ONLY LIBERAL BANK-BASHERS WHO ARE UPSET. SEN. JOHN MCCAIN (R-Ariz): “Imagine if BP had been a bank, the liability resulting from the oil spill could have led to its failure and another round of taxpayer bailouts,” said McCain, the top Republican on the panel. Pete’s story: http://bit.ly/1vqCBJX.

TAX EXTENDERS WATCH: Here’s the general thinking as of Hump Day, on day three of the lame duck. “They will try to get it done before the end of the year,” Dean Sonderegger, executive director of product management for Bloomberg BNA Software, tells Accounting Today.

“You’ll see a strong push for a grand bargain. The Republicans will try hard to make some of the provisions permanent. These will include the R&D credit, bonus depreciation and the enhanced 179 deduction. The big bargain will occur shortly after they get the continuing resolution to fund the government. And any conversation about the rest will get pushed out to 2015.” Roger Russell’s story for Accounting Today: http://bit.ly/1uKIU9T.

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