Finance Briefs: Week in Review & What’s Ahead

Week in Review

Budget legislation

  • The administration of President Donald Trump is indicating that it’s backing off threats to shut down the government next month if Congress decides against appropriating funds for a wall along the country’s border with Mexico. Instead, officials have signaled that the administration is leaning toward endorsing a plan to deal with wall funding as part of a December budget bill.

Consumer Financial Protection Bureau

  • The Consumer Financial Protection Bureau is set to finalize a new rule for payday lenders in September that is likely to apply to short-term loans that last two weeks but not to loans with terms of over 45 days.
  • House Financial Services Committee Chairman Jeb Hensarling (R-Texas) said in a letter that the CFPB’s payday loan rule could land in legal trouble if the rule-making process is linked to the possible political ambitions of Richard Cordray, the bureau’s director. Cordray denied that political considerations affected the pending rule and said that he had “no further insights” on whether he planned to resign his post on a specific date.

Wells Fargo


  • Trump said he believed that starting the process to withdraw the United States from the North American Free Trade Agreement might be necessary to achieve an ultimately “fair deal” with Canada and Mexico in the renegotiation talks. Mexican Foreign Relations Secretary Luis Videgaray said his country would leave the talks if Trump followed through on his threat.
  • As the three countries prepared for the second round of renegotiations in Mexico City, which began Friday, business leaders in Mexico and the United States were studying legal options in case Trump does withdraw the United States from the pact.

Tax reform

  • Trump reiterated in a speech on his tax reform agenda that he believed that the corporate tax rate should be lowered to 15 percent from 35 percent, but he didn’t provide any new details.
  • Trump’s push for a major cut in corporate taxes has exposed differences among Democrats about how the party should approach business taxes.

Debt limit

  • Trump was considering supporting a plan that would have combined an increase in the debt ceiling with $5.95 billion in funding for federal agencies handling the recovery from Hurricane Harvey, but House GOP leaders don’t intend to include a debt limit increase in the aid package.

Financial regulation

  • Sen. John Kennedy of Louisiana is seen as a key Republican vote on a pending congressional resolution that would undo the Consumer Financial Protection Bureau’s limits on arbitration clauses in financial companies’ consumer contracts.

Harvey aftermath

  • Lawmakers and Capitol Hill staff say a long-term reauthorization of the debt-strapped National Flood Insurance Program is unlikely to pass Congress before the program’s Sept. 30 expiration date.
  • JPMorgan Chase & Co. released an initial estimate that insurers will need to pay out $10 billion to $20 billion as a result of damage from Tropical Storm Harvey. Federal mortgage agencies also said the damage from Harvey could cause losses on some of the 400,000 mortgages that they guarantee.

What’s Ahead

  • Congress will be back in session after the Labor Day holiday. Critical finance-related developments such as raising the debt ceiling and reauthorizing the National Flood Insurance Program will be on lawmakers’ agenda.
  • On Thursday, the Senate Banking Committee will vote on the nominations of Joseph Otting to be the comptroller of the currency and Randal Quarles to be the Federal Reserve’s vice chairman of supervision.
  • Discussions on tax reform are likely to ramp up as September progresses. Treasury Secretary Steven Mnuchin said congressional Republican leaders and Trump administration officials plan to release more details about their tax overhaul plan in the next few weeks.

Events Calendar (All Times Local)

Federal holiday — no events scheduled
SEC’s Clayton speech at NYU 5:30 p.m.
House Financial Services subcommittee hearing on financing for lone-wolf terrorist attacks 2 p.m.
Mercatus Center discussion with former Treasury Secretary Lawrence Summers 3:30 p.m.
Urban Institute event on tax policy and immigrant experience 9 a.m.
FDIC fall research conference 9 a.m.
Senate Banking Committee markup of FSOC insurance bill, Quarles & Otting nominations 9:30 a.m.
Senate Banking Committee hearing on North Korea sanctions 9:30 a.m.
House Financial Services subcommittee hearing on financial regulation legislation 10 a.m.
National Economists Club luncheon on economic academia 12 p.m.
House Financial Services subcommittee hearing on FINRA oversight 2 p.m.
FDIC fall research conference 8 a.m.

This Is the Future of Brand Reputation Tracking

See how Morning Consult Brand Intelligence is changing the way media, marketing and communications executives are managing brand reputation.

Morning Consult Finance Top Reads


Finance Brief: SEC Says Corporate Filing System Was Hacked in 2016

The Securities and Exchange Commission said its system for storing documents filed by publicly traded companies was hacked sometime last year. In an eight-page statement on cybersecurity, SEC Chairman Jay Clayton said no personal information was stolen in the cyberattack, which was detected last year, but the SEC learned last month that the data “may have provided the basis for illicit gain through trading.”

Finance Brief: Week in Review & What’s Ahead

The fallout from the massive data breach at Equifax Inc. has the potential to derail congressional GOP efforts to pass legislation that would limit civil penalties for credit reporting companies sued by consumers. Lawmakers such as Sen. Elizabeth Warren (D-Mass.) are now investigating the Equifax breach, as is the Federal Trade Commission.

Finance Brief: Warren Begins Equifax Investigation

Sen. Elizabeth Warren (D-Mass.) said her office is now investigating the massive data breach at Equifax Inc. and is pushing for legislation that would allow consumers to freeze access to their credit files without paying a fee. Warren also asked TransUnion Inc. and Experian Inc., two of Equifax’s top competitors, to weigh in alongside federal regulators on whether Congress should pass legislation to strengthen consumer protections.

Load More