LET’S START OVER: Leaders of the conservative Republican Study Committee voted Thursday to oppose last year’s spending bill, throwing the House GOP’s budget plans into turmoil. The group is a powerful caucus including 170 of the House’s 246 members. The Hill’s Sarah Ferris explains why this is a major problem for Speaker Paul Ryan: http://bit.ly/1RrbuGV
FINDING A DEAL ON PUERTO RICO: The Treasury Department is trying to thread a political needle in pushing a fix for Puerto Rico’s debt crisis. A top department official warned lawmakers Thursday that the island is in need of “an immediate solution,” warning it will likely not be able to make debt payments due in May or July.
{mosads}”What started as a recession has turned into a fiscal and liquidity crisis that shows signs of becoming a humanitarian one as well,” warned Treasury counselor Antonio Weiss. “Without action, this crisis will escalate.” The Hill’s Peter Schroeder breaks it down here: http://bit.ly/1QgMzqn.
THEIR PLAN: Have Congress pass legislation granting the island the ability to restructure its debt — although Weiss stopped short of pushing for outright bankruptcy powers similar to those enjoyed by states. The bill would also subject Puerto Rico to heightened control from the federal government via a fiscal oversight board.
LAWMAKERS GRAPPLE WITH FALLOUT: Lawmakers grilled experts and former officials on the impact of Puerto Rico’s debt crisis at a hearing Thursday, as Congress faces a March deadline to propose a legislative fix.
The House Financial Services Committee subpanel on oversight largely agreed that Puerto Rico needed some combination of debt restructuring and financial reform. But they differed on how much of Puerto Rico’s debt should be included and how to implement the reforms.
The hearing highlighted the persistent divisions between the two parties, with Republicans warning against any bailout for the island territory. I’ll tell you all about it here: http://bit.ly/1KOBDAh.
WHAT THEY’RE SAYING:
- “I’m sympathetic to what the island is going through….but everything else sounds to me like a bailout.” –Rep. Mick Mulvaney (R-S.C.).
- “If the control board takes the people’s power away, it will just be viewed as another colonial power grab by the government.” –Rep. Nydia Velázquez (D-N.Y.).
- “Now you folks come to us, asking for what? … Any solution has to include a governmental fix so this doesn’t happen again. This is just not fair.” –Rep. Bruce Poliquin (R-Maine). http://bit.ly/1KOBDAh.
EX-CFPB CHIEF AT CAPITAL ONE: Another high-ranking official at the Obama administration’s financial protection agency has gone to Wall Street this month, The Hill has learned. Meredith Fuchs, who most recently served as the Consumer Financial Protection Bureau’s (CFPB) acting deputy director, has gone to the credit and banking giant Capital One.
She now serves as the bank’s senior vice president and chief counsel on regulatory issues, her recently updated LinkedIn page says. There have been no press releases from the agency or Capital One announcing her move. The Hill’s Megan R. Wilson gives us the details: http://bit.ly/1oDkPSk.
TRUMP BALKS ON TAX RELEASE: Despite ironic ribbing from Mitt Romney, Donald Trump says he will decide in the coming months whether to release his tax returns, pushing back on calls to release them immediately.
“My returns are extremely complex, and I’ll make a determination at the right time,” he told CNN on Wednesday evening. “I’m in no rush to do it.” http://bit.ly/1TBF8ey.
But another GOP presidential candidate has taken Romney’s words to heart. Sen. Ted Cruz (R-Texas) said the 2012 GOP nominee made some good points, and will release more of his returns soon: http://bit.ly/1OynAcE.
HAPPY THURSDAY and welcome to Overnight Finance, where we’re wondering how long it would take to sift through Trump’s tax returns. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
Tonight’s highlights include the formation of a gigantic pro-trade lobbying group, the federal government failing its own audit and a call for whistleblower protection.
See something I missed? Let me know at slane@digital-stage.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://www.digital-stage.thehill.com/signup/48.
EMAILS SHOW TENSION OVER ADVISER RULE: The Labor Department’s move to regulate financial advisers has drawn pushback from within the Obama administration, new emails released by Senate Republicans suggest. The regulatory push has also created tensions inside the federal government, with agency officials at times battling behind the scenes, according to emails unearthed by Republicans on the Senate Homeland Security and Governmental Affairs Committee. The Hill’s Tim Devaney has more: http://bit.ly/1TBERrS.
TPP SUPER-FRIENDS UNITE: Five of the nation’s most powerful business groups said Thursday they are teaming up to rally support behind an expansive Pacific Rim trade agreement, reflecting the enormity of the fight ahead.
On top of the Emergency Committee for American Trade, the U.S. Coalition for TPP has beefed up its ranks with the American Farm Bureau Federation, the Business Roundtable, the National Association of Manufacturers and the U.S. Chamber of Commerce in the battle to convince Congress to approve the Trans-Pacific Partnership (TPP). The Hill’s Vicki Needham breaks down their strategy: http://bit.ly/1S4u7mb.
FEDERAL GOV FAILS ITS OWN AUDIT: The federal government’s financial report for fiscal 2015 was unable to pass an audit by the Government Accountability Office, the watchdog announced Thursday. The GAO said it could not render an opinion on the U.S. consolidated financial statements for reasons including issues with the Department of Defense’s finances, the government’s inability to account for some transactions and the government’s ineffective report-preparing process. The Hill’s Naomi Jagoda explains why: http://bit.ly/1RqYLnr.
DEMS SLAM PFIZER FOR TAX DODGING: A report released Thursday by a liberal-leaning group and several House Democrats attacks the pharmaceutical giant for dodging taxes while raising prescription drug prices. The report from Americans for Tax Fairness (ATF) found that by merging with Allergan, Pfizer may be able to avoid paying an estimated $35 billion in taxes on profits held offshore. That money could fund the National Cancer Institute for nearly seven years: http://bit.ly/1WMeoat.
BILL WOULD BEEF UP WHISTLEBLOWER PROTECTIONS: A pair of Democratic lawmakers wants to make it easier for Wall Street workers to flag illegal activity for the federal government.
New legislation unveiled Thursday by Rep. Elijah Cummings (D-Md.) and Sen. Tammy Baldwin (D-Wis.) is aimed at making it easier and safer for employees at financial firms to go to the government with incriminating information. Peter Schroeder has more: http://bit.ly/1LgzcWQ.
HOUSE TAX CHIEF: IRS LOST CREDIBILITY: House Ways and Means Committee Chairman Kevin Brady (R-Texas) said he thinks the Internal Revenue Service has “lost credibility” but can regain it. When the IRS starts to address its issues in an objective way, Brady said Thursday at an event at the Brookings Institution, there will be more bipartisan support for providing the agency with more resources for customer service.
“I’m anxious frankly for an IRS commissioner who I don’t know whose party they’re in, who runs that agency differently than what we have today,” he said. Naomi Jagoda has it here: http://bit.ly/1LgzwoI.
NIGHTCAP: There is a $3 million market for dog sunglasses, because these are things people buy.
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