TRP Financial Services Report

July 28, 2014

Congress limps into the last week of July looking to notch some legislative victories in what has been an otherwise uneventful year.  With only two weeks of session remaining when they return, this last week in July may be the best bet for both chambers to deal with pressing items, such as the highway trust fund, a solution for the VA issue, and potentially even the border crisis.  While some media outlets are taking a lighter view of this “do nothing Congress”, this past weekend, former Secretary of State Hilary Clinton took aim at both sides for retreating to their entrenched positions.  With so much to do in the lame duck, there is a growing sense that others share in  Ms. Clinton’s sentiment and we may see some serious deal making in November – unless the Senate flips, then all bets are off. 

The House will take up a slew of suspension bills, including three originating out of the Financial Services Committee.  The Chamber will likely exit for the recess on a highly partisan note as it is expected to consider and pass a resolution to allow the Congress to sue the President, though some press accounts indicate that the House will attempt to pass legislation to deal with the VA issue or the growing humanitarian crisis on the border.

The Senate is expected to approve House passed legislation that would keep the Highway Trust Fund solvent for a few more months.  The Senate Banking Committee has a busy week with three hearings on the docket, including one to highlight a GAO report on how “Too Big Too Fail” works in the marketplace.  The Federal Open Market Committee (FOMC) meets this week, and will, among other things, issue a decision on when to raise interest rates.  

Further out,  pressure mounts on the White House to announce their nominees for the two vacancies at the Fed.  And, assuming all goes according to plan, Congress will leave town at the end of the week.  Although hill staffers will enjoy the break, historically, August has been known for its downsides.

The full edition of this week's Thorn Run Partner's Financial Services Report is available here.