In today's edition of Politico Morning Money—Washington's leading financial services newsletter—TRP’s Jason Rosenstock's comments on the outlook in Congress and upcoming legislative deadlines. Rosenstock reflects the recent House passage of a permanent “doc fix” as a sign for potential agreement on other issues, specifically citing reauthorization of the Export-Import Bank. "After all, if Speaker Boehner and Democratic Leader Pelosi can find agreement on a bill that blends entitlement reforms, increases in community health spending and takes the annual headache of the so-called ‘Doc Fix’ off the table, perhaps future deals are in the works,” Rosenstock states. “Perhaps they can replicate that success to find a path forward to reauthorize the Ex-Im Bank and on the other remaining ‘cliffs’ that Congress has to deal with this year.”
Continue reading “TRP’s Rosenstock: Can Congress Hatch a Deal on Export-Import Bank?”
Month: March 2015
TRP Financial Services Report
As we close the books on one of the most productive weeks in Congress this year (and perhaps in recent memory), we can’t help but note that it occurred just before the convergence of the Easter and Passover holidays this year. Perhaps it is just coincidence, but one can’t help but wonder if we should take it all as a sign of a rebirth of old school congressional deal-making. After all, if Speaker Boehner and Democratic Leader Pelosi can find agreement on a bill that blends entitlement reforms, increases in community health spending and takes the annual headache of the so-called “Doc Fix” off the table, perhaps future deals are in the works.
TRP Health Policy Report
Following one of the most productive weeks of the 114th Congress, lawmakers made their way home last Friday to begin a two-week recess. Before adjourning, House and Senate Republicans passed their preferred budget resolutions and the House voted overwhelming to permanently repeal Medicare’s flawed Sustainable Growth Rate (SGR) formula. Early last Friday morning, the Senate passed a budget (S.Con.Res. 11) 52-46 that would slash $5.1 trillion in spending over 10 years and balance the budget within a decade. Passage of the budget followed a slew of votes on 44 amendments. The Senate vote followed House passage of a similar blueprint (H.Con.Res. 27), positioning both chambers to start hammering out a final budget deal in the coming weeks. The House passed its budget in a 228-199 vote, with 17 Republicans voting against it. No Democrats voted for the GOP budget.
TRP Financial Services Report
Looking Ahead
Near Term
- An incredibly packed week as both the House and Senate try to wrap up this work period. The House week will be highlighted by a vote on the so-called “Doc fix” while the Senate will subject itself to the drama that is the vote-a-rama.
- In the Committees, House Financial Services will host SEC Chair Mary Jo White, where much attention is expected on her recent decision to jump feet first into the issue of the standard of care imposed on the guidance broker-dealers give to their retail customers. Fireworks are also expected when the Oversight and Investigations Subcommittee hears from FDIC Chair Gruenberg about Operation Chokepoint.
- The Senate Banking Committee also has a series of hearing on tap, including one that will continue to lay the groundwork for reducing the regulatory burden for smaller banks as well as one to examine how the FSOC is designating non-bank SIFIs. And the House will not be the only chamber to hold a hearing that will likely touch on the Fiduciary Rule, as Department of Labor Secretary Tom Perez testifies before the Senate Appropriations Labor HHS subcommittee on Thursday.
- On Wednesday, the SEC is expected to vote on a proposal to require high frequency traders (HFT) to register with FINRA. The Commission is also expected to vote on a proposal to revise Regulation A in order to deregulate small public offerings, to be defined as those up to $50 million dollars.
TRP Health Policy Report
A partisan dispute over abortion language included in a human trafficking bill (S. 178) brought the Senate to a halt again last week, with Democrats using procedural votes to block the legislation from moving forward. In response, GOP leaders indefinitely delayed a vote on Attorney General nominee Loretta Lynch. Democrats, however, are threatening to continue blocking the bill until the Hyde Amendment, which prohibits federal funding for abortions, is removed from the legislation. An attempt to broker a compromise on the measure failed last Thursday, which could foreshadow how the chamber wrestles with even tougher issues in the coming months, such as the budget, raising the debt ceiling and highway funding.
Top Five Questions About the SGR Deal
With just five legislative days scheduled before the March 31 expiration of the current patch to the Sustainable Growth Rate (SGR), we thought it would be helpful to provide a brief overview of the current state-of-play with respect to the negotiations to permanently replace Medicare’s flawed physician payment formula. As we have previously reported, several Senate Democrats have raised objections to the draft bill, citing three major areas of concern: (1) the package will extend the Children’s Health Insurance Program (CHIP) for only two-years, rather than the four-year extension (S. 522) that every Democrat in the Senate has cosponsored; (2) beneficiary-oriented reforms—such as increased means testing of Part B and D premiums, or limits on first-dollar coverage in Medigap—have come under scrutiny from advocacy groups such as AARP; and (3) an abortion policy rider, the Hyde amendment, would bar federal funds from abortions at community health centers.
TRP Financial Services Report
Despite having the fewest members since the Hoover Administration, the fact that Speaker Boehner has had deal with a disparate and unruly group of Republicans contrasted with the minority’s more uniform cohesion and then combine that with a similar framework in the Senate, the reality is that Democrats, even House Democrats have real power in this Congress. So while it may seem self-serving to say it, the reality is that as we look at the major issues coming down the pike — from regulatory reform to funding the government and ensuring it doesn’t default, to everything in between — it will be important for stakeholders in those issues to actively engage with the minority party in order to advance their efforts. As we have seen with DHS funding, and the rumored Doc Fix likely to be introduced this week, despite their overwhelming majority in the House, the fact remains that only truly bipartisan measures are the ones that getting to the President to be signed into law.
TRP Health Policy Report
Last week saw the Senate debate anti-human trafficking legislation (S. 178), but the chamber failed to advance the measure after a partisan dispute arose over an anti-abortion provision. Senate Majority Leader Mitch McConnell (R-KY) filed cloture on the measure Thursday, as lawmakers try to find a way forward on the Justice for Victims of Trafficking Act. In other legislative activity, Senators voted unanimously to confirm two executive branch nominees: Christopher Hart to be Chairman of the National Transportation Safety Board (NTSB) and Daniel Marti to serve as Intellectual Property Enforcement Coordinator. The House was not in session.
TRP’s Rosenstock Weighs in on Fiduciary Duty Rule
In an article published today in Investment News, Thorn Run's Jason Rosenstock weighs in on the political landscape surrounding the Department of Labor’s pending Fiduciary Duty Rule. The Fiduciary Duty Rule would change the definition of “fiduciary” to apply to more financial advisors, but there has been notable opposition to the change. “The politics have shifted a little,” Rosenstock explains in the article. “Democrats are going to wait to see what the rule says before they weigh in or decide to weigh in.” Rosenstock added that Senator Elizabeth Warren’s (D-MA) position is likely to be a beacon for other Congressional Democrats on the rule. "[Warren] weighs heavily in all political decisions that Democrats have to make,” he said. “[Fiduciary duty] is no exception to that calculus.”
Continue reading “TRP’s Rosenstock Weighs in on Fiduciary Duty Rule”
TRP Financial Services Report
The drama surrounding the eventual resolution of the Department of Homeland Security funding made two things very clear. First, that despite having majorities in both Houses, Republicans still have intra-chamber differences, and second, because of those differences Democrats still matter. With Leader McConnell reaffirming his commitment not to let the nation default on the debt limit, and with the end of extraordinary measures likely coinciding with the end of the fiscal year, it should all but guarantee an exciting fall.