Overnight Finance: Senate rejects Trump immigration plan | U.S. Bancorp to pay $600M in fines for lacking money laundering protections | Cryptocurrency market overcharges users | Prudential fights to loosen oversight

Overnight Finance: Senate rejects Trump immigration plan | U.S. Bancorp to pay $600M in fines for lacking money laundering protections | Cryptocurrency market overcharges users | Prudential fights to loosen oversight
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Happy Thursday and welcome back to Overnight Finance, where we're slowly recovering from Valentine's Day sugar hangovers. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

 

THE BIG DEAL: The Senate cannot agree on a bill to fix the immigration system, protect Deferred Action for Childhood Arrivals (DACA) and solve a critical issue threatening government funding talks.

Four separate bills failed earn the necessary 60 votes to break a filibuster - including one containing border security funding and a DACA extension, one offered by a bipartisan group of moderates, and one backed by President Trump and immigration restrictionists.

 

What comes next: From The Hill's Jordain Carney... "Where the Senate's debate goes next is unclear, though Sen. John CornynJohn CornynSenate moving ahead with border bill, despite Trump GOP senators introduce bill to prevent family separations at border Senate GOP tries to defuse Trump border crisis MORE (R-Texas) told reporters that both sides would keep talking ahead of the March 5 deadline. The Trump administration announced last year that they were ending DACA, which allows undocumented immigrants brought into the country as children to work and go to school. Under that decision Congress has until March 5 to pass a fix. But two court dates have thrown that into limbo." http://bit.ly/2EvgihF.

 

U.S. Bancorp to pay $613 million for lack of anti-money laundering checks: The parent company of U.S. Bank will pay a total of $613 million for a lack of sufficient checks to ensure the bank was adhering to the Bank Secrecy Act and laws meant to weed out illicit finance.

The company will forfeit $528 million in profits and pay fines to three federal agencies: $15 million to the Federal Reserve Board, $75 million to the Office of the Comptroller of the Currency (OCC) and $185 million to the Treasury Department's Financial Crimes Enforcement Network.

  • OCC: "The bank had systemic deficiencies in its transaction monitoring systems, which resulted in monitoring gaps and a significant amount of unreported suspicious activity," the agency said in a statement. "The bank conducted a look-back required by the 2015 consent order and, as a result, had to file additional Suspicious Activity Reports, which constituted additional violations."
  • Andy Cecere, president and CEO of U.S. Bank: "Today's resolution finalizes legacy matters involving our AML [anti-money laundering] compliance program," said Andy Cecere, president and CEO of U.S. Bank. "We regret and have accepted responsibility for the past deficiencies in our AML program. Our culture of ethics and integrity demands that we do better.

 

LEADING THE DAY

The dominant cryptocurrency marketplace charged users duplicative fees for previous purchases on Thursday, emptying and over-drafting users' bank accounts.
Users of Coinbase, a digital exchange and wallet that allows people to buy, sell and store the most popular cryptocurrencies, reported being charged fees multiple times over for old transactions.

Dozens of Coinbase users with debit card and bank accounts linked to the website complained in online forums Thursday about the duplicative charges. Customers reported being charged anywhere from two to 17 times for fees they already paid: http://bit.ly/2EyrqtV.

Stories from victims:

Coinbase explains: "We have confirmed that this is an issue occurring downstream from Coinbase, and we're working with those parties to reach a resolution. We are doing all that we can to make sure that affected customers are made whole."

 

Treasury Secretary Steven MnuchinSteven Terner MnuchinOn The Money — Sponsored by Prudential — Senators hammers Ross on Trump tariffs | EU levies tariffs on US goods | Senate rejects Trump plan to claw back spending Mnuchin: Tax-filing 'postcard' to be released next week Former top Treasury official to head private equity group MORE raised eyebrows with a remark on guns during an exchange with Rep. John LewisJohn LewisTop House Dem: GOP promoting ‘psychological torture’ of kids on border John Lewis: History will not be kind to us if we continue to go down this road Clinton advocates 'sane gun laws' at Robert Kennedy memorial MORE (D-Ga.) at a hearing on Thursday.

At the hearing, Lewis asked Mnuchin about the budget and gun violence a day after a mass shooting at a Florida high school. "Personally I think the gun violence -- It's a tragedy, what we've seen yesterday, and I urge Congress to look at these issues," Mnuchin said. http://bit.ly/2GhptOS

A department aide said Mnuchin was not breaking with President TrumpDonald John TrumpCNN analyst Kirsten Powers: Melania's jacket should read 'Let them eat cake' CNN's Cuomo confronts Lewandowski over 'womp womp' remark Sessions says FBI agent Peter Strzok no longer has his security clearance MORE on guns.

"Secretary Mnuchin was directly addressing Congressman Lewis' question about availability of funds in the budget to address the issue of gun violence," said Treasury spokesman Tony Sayegh. "He also reflected the feelings shared by all Americans that yesterday's school shooting was a profound tragedy."
http://bit.ly/2Es8EEu.

 

The technology conglomerate Cisco says it will use savings it is getting from the Republican-backed tax law to buy back shares from investors.
The California-based tech company announced on Wednesday it would move a significant portion of cash to its shareholders over the next two years through increased dividends and buybacks.

The move makes Cisco the first large-scale tech company to pass the benefits of the tax law directly to its investors, according to the Financial Times.

"There's a great deal of confidence on a global basis, probably a lot more than we have seen for a very long time," Cisco's chief executive, Chuck Robbins, told the Financial Times: http://bit.ly/2Eylsta.

 

The Senate Finance Committee on Thursday approved two of President Trump's delayed trade nominees.

The panel sent C.J. Mahoney and Dennis Shea, both nominated for deputy U.S. Trade Representative jobs, to the Senate floor for consideration. U.S. Trade Representative (USTR) Robert LighthizerRobert (Bob) Emmet LighthizerMcConnell urges GOP senators to call Trump about tariffs Companies brace for trade war MORE complained that the Trump administration has waited too long to get its nominees confirmed.

What took so long? Republican Sen. Tim ScottTimothy (Tim) Eugene ScottGOP senators introduce bill to prevent family separations at border Anti-Trump Republicans better look out — voters might send you packing Senate GOP urges Trump administration to work closely with Congress on NAFTA MORE (S.C.) had placed a hold on Mahoney and Shea over what he said was a lack of communication with Lighthizer about trade issues in his state.

But after a recent trade meeting at the White House, Scott said he had gotten the answers he needed and would lift the hold on the two USTR nominees: http://bit.ly/2EujFVT.

 

MARKET CHECK: Trucking. U.S. stocks extended their recent winning streak to a fifth day on Thursday, closing with solid gains. It's welcome and surprising relief for investors who feared the impact rising consumer prices could have on interest rates.

  • Dow Jones: Up 306 points (1.2 percent)
  • Nasdaq: Up 112 points (1.6 percent)
  • S&P 500: Up 32 points (1.2 percent)

 

GOOD TO KNOW 

  • Treasury Secretary Steven Mnuchin said Thursday that the IRS plans to release a new calculator next week to help people figure out if they need to adjust their tax withholding in light of the new tax law.
  • Sentiment for new single-family homes held at a healthy 72 level, with consumer demand forecast to grow in the next six months, according to a new housing index released on Thursday by the National Association of Home Builders (NAHB). 

 

GOING DEEPER: Prudential's lonely battle

  • Prudential Financial, the sole insurance company subject to stricter federal oversight under the Dodd-Frank Act, is pushing Washington to set it loose.
  • Prudential is asking an interagency group of regulators to strip its designation as a "systemically important" nonbank financial institution. The insurance company insists it should have never been grouped in with the banks and financial firms that helped tank the economy in 2008, and says its business has only grown safer and stronger.
  • Prudential has enlisted a team of Washington lobbyists to push the company's case as the Trump administration takes aim at the rules the company is fighting. I explain here: http://bit.ly/2Ev1dfR.

 

ODDS AND ENDS:

  • The Environmental Protection Agency (EPA) reached a $1.2 million settlement with Amazon on Thursday over charges that third parties had used the website to sell thousands of illegal pesticides.
  • The IRS issued more than $1.7 million in awards in fiscal 2016 and early fiscal 2017 to employees who had been disciplined by the agency, a Treasury Department watchdog said.
  • The Republican chairman of the Federal Communications Commission is being investigated by the agency's inspector general over whether he improperly pushed through rules in an effort to benefit the Sinclair Broadcast Group, according to The New York Times on Thursday.