• The Federal Deposit Insurance Corp., the Treasury Department and the Federal Reserve are holding meetings with financial companies to consider a plan to rescue First Republic Bank, as the troubled firm struggles to shore up its finances and find a private-sector buyer for assets it has put up for sale, according to three sources familiar with the situation. It is unclear if federal regulators are looking to participate in a rescue of the bank, but a source said that involvement of the federal government has brought more parties to the negotiating table. (Reuters)
• Mastercard Inc. said the Department of Justice has opened a civil investigation to look into whether the company’s debit-card business acted in an anticompetitive manner in violation of certain sections of the Sherman Act. The probe is focusing on the debit-card program’s competition with other networks and technologies, and given that the DOJ had opened a similar civil investigation into Visa Inc.’s practices almost two years ago, Mastercard Chief Financial Officer Sachin Mehra said the inquiry was “not surprising.” (Bloomberg)
• Internal Revenue Service Commissioner Danny Werfel told the House Ways and Means Committee that the agency will not use any of its $80 billion in additional funding to hire armed auditors, contrary to Republican claims of IRS plans for an “army” of such agents. But Werfel noted that the IRS Criminal Investigations division, whose staff is authorized to carry firearms but does not conduct audits, would hire additional workers, as the agency expects to hire about 360 criminal investigation special agents over the next five years. (Reuters)
• A pair of Russian comedians posing as Ukrainian President Volodymyr Zelensky tricked Federal Reserve Chair Jerome Powell into joining them in a video interview, clips of which were posted online. A Fed spokesperson said the conversation was friendly and no sensitive or confidential information was shared, but the matter has been referred to law enforcement. (The Wall Street Journal)

The New Apple Savings Account Aligns With What Consumers Want

Morning Consult

Wall Street gives administration earful over antitrust enforcement

Josh Sisco and Sam Sutton, Politico

Wall Street dealmakers have dialed up their complaints to the White House over the last year as the administration’s top antitrust enforcers — FTC Chair Lina Khan and DOJ antitrust head Jonathan Kanter — knuckle down on merger activity they say would damage the economy, according to Biden officials and financial industry executives.

A new bipartisan bill would make sure government and nonprofit workers can get student-loan forgiveness — even if they leave public service after 10 years

Ayelet Sheffey, Insider

On Thursday, a bipartisan group of lawmakers — Sens. Bob Menendez and Mike Braun, and Reps. Chrissy Houlahan and Brian Fitzpatrick — reintroduced a bill called the PSLF Payment Completion Fairness Act, which would remove the requirement for borrowers to be working in public service at the time they apply for and receive debt relief.

Credit bureau CEOs face tough questions at Senate hearing; Democrats push to remove medical debt

Casey Quinlan, States Newsroom

U.S. Senators grilled the executives of three major credit reporting bureaus Thursday on whether their practices are transparent and fair to consumers, with Democrats frequently pressing the CEOs to remove medical debt from the reports.

SEC steps up accounting and auditing enforcement

Michael Cohn, Accounting Today

The Securities and Exchange Commission has ramped up its efforts to deter accounting fraud and auditing failures, with a new report showing that enforcement actions increased 55% in fiscal year 2022 compared to the prior year, although total monetary settlements were down more than 60%.

Lawmakers introduce Child Care for Working Families Act

WSLS News

On Thursday, lawmakers introduced the Child Care for Working Families Act, something they say is sorely needed. U.S. Senator Tim Kaine is a co-sponsor of the bill.

Fed Bosses Steered Examiners Away From Probing Problems Like SVB

Craig Torres et al., Bloomberg

All through the period when trouble was brewing at Silicon Valley Bank, the Federal Reserve was taking steps that effectively discouraged examiners from doing much about it.

Inflation Is Still High. What’s Driving It Has Changed.

Jeanna Smialek and Christine Zhang, The New York Times

Two years ago, high inflation was about supply shortages and pricier goods. Then it was about war in Ukraine and energy. These days, services are key.

US economy grew 1.1 percent in the first quarter, much slower than expected

Karl Evers-Hillstrom and Sylvan Lane, The Hill

U.S. economic growth slowed dramatically in the first three months of 2023, according to data released Thursday by the Bureau of Economic Analysis (BEA).

The GOP wonks trying to get their party not to detonate the debt limit bomb

Jeff Stein, The Washington Post

A small group of conservative budget experts is cautioning House Republicans that brinkmanship over the nation’s borrowing limit could lead to economic disaster, warning of severe financial ramifications even as their own party ignores their advice.

Democrats, Republicans dig in on debt-ceiling standoff after House action

David Morgan and Richard Cowan, Reuters

The U.S. Senate showed no sign of moving to avoid a looming debt-ceiling crisis on Thursday, as Republicans rejected calls to raise the $31.4 trillion limit without conditions and Democrats dismissed the idea of talks.

Biden Faces His First Big Choice on Debt Limit

Jim Tankersley, The New York Times

After Republicans passed a bill that pairs spending cuts and fossil fuel support with raising the nation’s borrowing cap, the president must decide when and how to negotiate.

American living standards are on the line in the debt ceiling drama

Christine Romans, CNN

Inside the Beltway, jockeying over raising the debt ceiling has become a partisan ritual to gain political points. But marching toward a debt ceiling default puts American living standards on the line.

High inflation still top concern for global economy, say economists: Reuters poll

Hari Kishan, Reuters

Persistently high inflation remains the biggest economic concern this year even as most central banks are at or near the end-game for rate rises, according to Reuters polls of economists who also upgraded their 2023 growth forecasts from three months ago.

Could the Fed pause next week? It’s not out of the question.

Greg Robb, MarketWatch

Economists make case for interest holding rates steady in May while signaling an intention to hike in June.

The surprising risk in ramping up IRS audits

Brian Faler, Politico Pro

Audits by the agency often result in no change to the taxes owed by those scrutinized, something that critics may seize on as it ramps up examinations of the wealthy.

‘Dreamers’ income more than doubled under DACA program: survey

Rafael Bernal, The Hill

A new survey of Deferred Action for Childhood Arrivals (DACA) recipients is highlighting the policy’s significant positive economic impact on its beneficiaries.

Lawmakers reintroduce SAFE Banking Act, a bill the cannabis industry hails as a lifeline

Stefan Sykes, CNBC

A group of bipartisan lawmakers reintroduced the Secure and Fair Enforcement (SAFE) Banking Act in the House and Senate on Wednesday, after the legislation designed to free up banking services for the cannabis industry stalled in last year’s Congress.

Regional Bank Stocks Stabilize as Contagion Fears Ease, for Now

Bailey Lipschultz and Max Reyes, Bloomberg

For US policymakers who have struggled to contain the month-old banking crisis, there are encouraging signs that investor confidence in regional banks may be starting to recover, at least for now.

JPMorgan employees gripe about Dimon’s return-to-office edict

Nupur Anand and Lananh Nguyen, Reuters

JPMorgan Chase & Co (JPM.N) CEO Jamie Dimon sent a clear message to employees this month: get back to the office. It touched a nerve among his staff.

Why No Buyer Has Emerged for First Republic

Telis Demos, The Wall Street Journal

An acquisition of the beleaguered bank could carry costs well beyond the initial sticker price.

Inflation fueling Americans’ concerns about retirement, EBRI survey says

Margarida Correia, Pensions & Investments

Concerns over inflation have shattered Americans’ confidence in being able to retire comfortably, according to the 33rd annual Retirement Confidence Survey released Thursday by the Employee Benefit Research Institute.

Apple’s New Savings Account Is Convenient. Is That a Good Thing?

Imani Moise, The Wall Street Journal

Having savings tied to credit card, payments app could tempt some users into overspending.

Capital One posts worse-than-feared quarterly profit on provisions

Reuters

Consumer lender Capital One Financial Corp’s first-quarter profit missed estimates on Thursday due to an increase in provisions that reduced gains from interest rate hikes.

Pending home sales fall for first time since November

Adam Barnes, The Hill

The number of homes under contract declined last month for the first time since November, according to data released by the National Association of Realtors (NAR) on Thursday.

Mortgage Rates in the US Rise to Highest Level Since Mid-March

Prashant Gopal, Bloomberg

Mortgage rates in the US rose to the highest level since the middle of March. The average for a 30-year, fixed loan was 6.43%, up from 6.39% a week earlier, Freddie Mac said in a statement Thursday.

Meet the cheapest US states to buy a house

Julia Mueller, The Hill

A new study analyzing Zillow data has found that the monthly median sale price of a house last year was more than $500,000 in Utah, California and Colorado — and more than a staggering $800,000 in Hawaii.

House Financial Services, Ag panels to tackle crypto bill together

Claire Williams, American Banker

Rep. French Hill, R-Ark., the chairman of the House Financial Services Committee’s panel on digital assets, said that he and leaders on the House Agriculture Committee will work together on setting up a regulatory framework for cryptocurrency.

Coinbase Armed for Legal Clash Over How Crypto Is Regulated

Dave Michaels and Paul Kiernan, The Wall Street Journal

Facing possible SEC lawsuit, biggest U.S. exchange questions how regulators flex authority over digital-asset industry.

Long-Term Bitcoin Holders Are Profitable for First Time in 11 Months, Blockchain Data Shows

Omkar Godbole, CoinDesk

Bitcoin’s long-term holder spent output profitability ratio shows coins moved onchain that have a lifespan of at least 155 days or higher are being sold at profit. That suggests the bitcoin bear may be behind us.

‘Crypto is dead in America.’ How FTX’s collapse instigated a Biden crackdown on the digital-asset sector.

Chris Matthews, MarketWatch

The Treasury Department and SEC have grown more unfriendly to crypto in recent months.

Sweden’s Klarna burned through $100 million a month to become a buy-now-pay-later giant in the U.S. Can ChatGPT help it turn a profit again?

Vivienne Walt, Fortune

The snow is falling heavily in Stockholm, but inside a small, pitch-dark auditorium, the atmosphere is cozy and warm. A buzz of anticipation gives the space the feel of a music club as about 300 people wait for the headline act.

Circle turns to Customers Bank for USDC payment settlement, looks to recover market position

Leo Schwartz, Fortune

When Signature Bank collapsed in March, many wondered how crypto firms would fare given their reliance on the digital assets-friendly bank—and, in particular, on its real-time payments platform, Signet, which made it easy to convert between fiat currency and crypto.