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Tanden at OMB. So who’s in it? – No real surprise that Neera Tanden has stepped down from consideration for the key White House post of Director of the Office of Management and Budget. Tanden did not get the votes and Sen. Lisa Murkowski (R-Alaska) was really his only hope. CNN’s Jake Tapper tweeted that Murkowski told the White House it was a ‘no’. Tanden is likely to get another confirmed non-Senate post in the administration, assuming she wants it.
As our notes from Sam Stein, top candidates for the job now include Ann O’Leary, a former aide to Hillary Clinton, and Gene Sperling, former senior adviser to presidents Bill Clinton and Barack Obama. Many Hill Democrats want Shalanda Young, who starred Tuesday in her second-place audition at the OMB and has years of experience on the House Appropriations Committee and would add to the diversity at the top of the economic team. Young received praise from Republicans and Democrats on Tuesday and is clearly the frontrunner.
Also by Sam: “Barring an unexpected development, Tanden’s withdrawal will mean that Biden’s Cabinet will include only one Asian-American Pacific Islander. The Chairman of the Congressional Asian Pacific American Caucus, Rep. Judy Chu (D-Cali.), Called this development a “tragedy.”
But don’t rule out Gene – A number of senior Democratic sources MM spoke to on Tuesday night said it would be difficult for Biden to nominate an older white man for the OMB slot, especially with Young so well. informed. But Sperling has plenty of White House fans (including Klain) and extensive experience with budget matters and broader economic strategy.
And there is already a lot of diversity in the economic team with Susan Rice as the head of the domestic policy adviser, Cecilia Rouse as the first black president of the Council of economic advisers and Janet Yellen as the first female secretary of the Treasury.
Said a top Dem: “Biden did a great job in both cases on diversity. But [Young] would be a historic choice and I’m sure she must be a remarkable talent to have the support she has.
Sperling garnered significant support and praise from the left on Tuesday including the representative of Ro Khanna (D-Calif.), Ezra Klein, Dean baker, Robert reich and Teaching zephyr. (More information below.)
GOOD WEDNESDAY MORNING – Have a lovely day everybody. Email me on [email protected] and follow me on Twitter @morningmoneyben. Email Aubree Eliza Weaver on [email protected] and follow her on Twitter @AubreeEWeaver.
President Biden has a bipartisan meeting on cancer law at 1:45 p.m. and a virtual event at 5:00 p.m. with the Democratic House caucus … Senate finances are expected to approve the appointments of Katherine Tai to the post of sales representative of the United States and Adewale “Wally” Adeyemo to be Undersecretary of the Treasury… ADP job at 8:15 am should post a gain of 200K
SHALANDA YOUNG DAZZLES – Our Jennifer Scholtes: “Republican senators have turned the Shalanda Young confirmation process … into a dress rehearsal to replace Neera Tanden as … Biden’s choice to lead the White House budget office.”
“At Young’s first confirmation hearing as deputy director of [OMB]GOP lawmakers pushed her as an alternative to Tanden, just hours before the White House withdrew Tanden’s nomination … “You will have my support, maybe for both jobs,” the senator. Lindsey graham (RS.C.) told Young. … In her previous role as the personnel manager of the House Appropriations Committee, Young gained a solid reputation among lawmakers on both sides as she led negotiations on the bipartite funding agreements.
A NEW FIN-TECH LOBBY GROUP EMERGES – Our Victoria Guida scoops: “A large group of financial technology companies are pooling their lobbying power in the face of growing skepticism in Washington about the promise of fintech, as well as a growing list of political issues that will shape their collective future.
“The Marketplace Lending Association and the Online Lending Policy Institute have merged to form the American Fintech Council, with the goal of ‘promoting policies that advance responsible innovation and inclusiveness in financial services,’ according to a press release from the new group provided to POLITICO. ”
CONFIRMED ROOM – Our Megan Cassella: “The Senate has confirmed Cecilia Rouse on… to become President of the White House Council of Economic Advisers, making her the first black person to occupy this role in the 74-year history of the organization .
“Rouse will serve as a senior economic adviser to .. Biden as the administration rushes to limit the fallout from the worst economic recession since the Great Depression.” A trained labor economist, Rouse will play a key role as the country recovers from an unemployment crisis that has left more than 10 million Americans out of work. The Senate voted 95 votes to 4 in favor of its confirmation.
CONSUMER CONFIDENCE IS INCREASING, ESPECIALLY IN TEXAS – Via the daily Morning Consult Consumer sentiment index: “Consumer confidence rose in 45 states in February, indicating that the timeliness of vaccinations and the strength of the economic recovery are building confidence across the country. Despite the energy crisis in the middle of the month, consumers in Texas became steadily more optimistic about the economy during the month of February. ”
PPP LACK OF KEY DATA – Our Zachary Warmbrodt: “Biden is making sweeping changes to Washington’s largest small business relief program to ensure it reaches people of color and others hardest hit by the pandemic. Problem is, he’ll never really know how much of a difference his efforts have made.
“The Small Business Administration, which manages the Paycheck Protection Program, faces huge data gaps on how more than $ 660 billion in loans have been distributed because it does not oblige business owners to communicate demographic information when seeking help. ”
GENSLER INCREASES PRESSURE ON COMPANIES – Also via Zach: “Gary Gensler… the choice of Biden to lead the [SEC] reported … that the agency would pressure companies to disclose their political spending activities, a long-standing tension between SEC officials, big business and Democrats.
LOWER STOCK DRIFT – Stan Choe, Damian J. Troise and Alex Veiga of the AP: “The shares closed considerably lower on Wall Street on Tuesday, giving back some of their big gains of the day before. The S&P 500 fell 0.8% after an earlier switch between small gains and losses.
“A day earlier, the benchmark had jumped 2.4% for its best performance since June. Tech and internet stocks accounted for a large chunk of sales, a reversal from the previous day.”
INCREASE IN REGIONAL BANK STOCKS – Amber Burton of the WSJ: “Investors live in a bond world. But bank stocks are also experiencing a renaissance. US bond yields have increased at a rapid pace. The 10-year Treasury yield rose to 1.459% in February, the biggest gain in a month since 2016.
“The bond yield started in February at 1.007%. The rise was also beneficial for bank stocks, as higher rates usually mean higher profits. The KBW Nasdaq Bank Index is up 19% so far this year. The KBW Nasdaq regional banking index is up 25%. ”
AUDITOR FINDS PPP AT HIGH RISK OF FRAUD – AP’s Kevin Freking: “Emergency loans to small businesses during the coronavirus pandemic have been added to a list of government programs considered high risk of waste, fraud or mismanagement.
“The most common of these emergency loans, PPP loans, are given at a low interest rate and are fully repayable under terms that include spending a certain percentage on salary costs. The loans were created by Congress and have proven to be extremely popular as stores, restaurants and other small businesses struggle to survive the pandemic.
THE CHOICE OF THE CFPB DE BIDEN TO FOCUS ON BORROWERS FIGHTING THE PANDEMIC – Andrew Ackerman and AnnaMaria Andriotis of the WSJ: “Rohit Chopra… Biden’s choice to lead the Consumer Financial Protection Bureau, said he would seek to protect Americans struggling with debt amid the coronavirus pandemic from abuse potential lenders.
THE FED IS STARTING TO RECOGNIZE THAT IT HAS AN EYE ON TUMULT ON THE MANDATORY MARKET – NYT’s Jeanna Smialek: “Lael Brainard, one of the governors of the Washington-based Federal Reserve, offered the first major clue on Tuesday that a mad rush in bond markets over the past week may have raised alarms to the US central bank.
A GOLDMAN CHIEF LAWYER STRIKES OUT AMONG OTHER SENIORS LEAVING THE BANK – Bloomberg’s Sridhar Natarajan: “Karen Seymour, who sent Martha Stewart to jail as a prosecutor and then helped Goldman Sachs executives stay out of trouble, is leaving the bank. Seymour is stepping down as General Counsel of Goldman Sachs Group Inc., one of the most important and challenging legal jobs in the business world ”
THE TRANSITIONS – By version: “Joseph cortina, formerly Director of Federal Government Affairs for The Independent Insurance Agents & Brokers of… joined the Sternhell Group as Senior Advisor to Financial Services Clients ”…
Rachael baitel is now chief of staff at health care firm Russell Street Ventures. She most recently served as Deputy Chief of Staff at the US International Development Finance Corporation and is a USAID, White House and Goldman Sachs alumnus… Marisol Garibay is now Vice President of Communications at NAFCU…
Dana wade, the former Federal Housing Administration (FHA) commissioner joined Walker & Dunlop to lead the home and urban development (HUD) back-to-back loan initiations for the business…. Sheryl Pardo joined the Housing Policy Council (HPC) as Senior Vice President of Public Affairs.
INCREASE IN LOANS TO BANK COMPANIES – Via the Financial Services Forum: “The country’s largest banks have increased credit to businesses and households by $ 785 billion, or 10%, in 2020… challenging suggestions that banks have not granted loans. credit to the economy during the pandemic. ”
NEW ON LIBRARIES – Karen Petrou’s new book, released today: “‘DRIVER OF INEQUALITY: The Fed and America’s Future of Wealth “examines the powerful link between rising inequality and financial policy, and proposes several meaningful policy reforms that do not require an act of Congress.”