The Trump administration is poised to unveil a tax reform outline today, and it’s likely to steer clear of endorsing a “border adjustable” tax on imports that’s the centerpiece of the House GOP’s proposal.
President Donald Trump is sticking to his campaign promise to cut the U.S. corporate tax rate to 15 percent from its current marginal rate of 35 percent. Trump told aides that he’s willing to add to the federal deficit to get to 15 percent; the House GOP plan calls for lowering the rate to 20 percent.
The head of the United Kingdom’s Financial Conduct Authority said non-U.S. regulators would lose confidence in Washington’s ability to handle a banking crisis if the United States does away with Dodd-Frank mechanisms for winding down failing banks.
President Donald Trump signed three executive actions affecting the financial services industry. The actions included two presidential memorandums — one directing the Treasury Department to examine the Dodd-Frank process for winding down failing banks, and another directing the agency to review the Financial Stability Oversight Council’s authority to designate firms systemically important. The third item was an executive order directing the Treasury Department to analyze tax rules adopted in the last 18 months and identify any regulations deemed convoluted or onerous.
The Federal Reserve levied its first major fine related to the Volcker Rule to Deutsche Bank AG, which will pay about $157 million after the Fed said it failed to ensure traders adhered to the ban on proprietary trading and failed to detect online chats with competitors.
House Financial Services Committee Chairman Jeb Hensarling (R-Texas) scheduled an April 26 hearing to discuss his Dodd-Frank replacement legislation, known as the Financial CHOICE Act. He also circulated the bill text.
Goldman Sachs trading fell short of analysts expectations in the first quarter of 2017, with revenues from its debt-trading business little changed compared to the same period last year. Investment banking units at JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. exceeded expectations.
The Club for Growth launched an ad campaign today pressuring four House GOP lawmakers to oppose the border adjustment tax plan supported by the chamber’s Republican leadership. The conservative group is targeting Budget Committee Chairman Diane Black (Tenn.), as well as Reps. John Culberson (Texas), Martha Roby (Ala.) and Tom Rice (S.C.).
President Donald Trump is expected to select Randy Quarles, managing partner at an equity investment firm and a Treasury Department official under former President George W. Bush, as the Federal Reserve’s top bank regulator.
President Donald Trump expressed support for the Export-Import Bank, a longtime target of fiscal conservatives who see it as a government interloper in private markets. The export credit agency has faced limited financing powers for more than a year due to board vacancies. To resolve that, the White House said Trump intends to nominate two Ex-Im candidates, both requiring Senate confirmation: former Rep. Scott Garrett (R-N.J.), who voted against renewing the bank’s charter while he was in Congress, would be head of the credit agency; and former Rep. Spencer Bachus (R-Ala.), who previously led the House Financial Services Committee, would serve on the agency’s board.