OVERNIGHT FINANCE: IRS official: Lerner’s emails may not be lost

BIG STORY – PERRY SENDS TROOPS TO BORDER. Rick Jervis for USA Today: “AUSTIN — Up to 1,000 National Guard troops are headed to Texas' southern border to help collar criminals, as thousands of undocumented youth continue to migrate illegally over the border,” per an order from Texas Gov. Rick Perry. http://usat.ly/1nOFtXe.

TOMORROW STARTS TONIGHT: IRS MAY STILL HAVE LERNER’S EMAILS? Happy Monday, folks. The House Oversight Committee released a transcript earlier today from an interview congressional investigators conducted last week with IRS Deputy Associate Chief Counsel Thomas Kane. View the full transcript: http://1.usa.gov/1nNPV1k. Here’s the part raising eyebrows:

KANE: There is an issue as to whether or not there is a ‑‑ that all of the backup recovery tapes were destroyed on the 6month retention schedule.

INVESTIGATOR: So some of those backup tapes may still exist?

KANE: I don’t know whether they are or they aren’t, but it’s an issue that’s being looked at.

THIS IS OVERNIGHT FINANCE, where we’re all re-calibrated after two days off. Hope everybody had a great weekend. Tweet: @kevcirilli;  email: kcirilli@thehill.com; and subscribe: http://thehill.com/signup/48.

Back to work. It’s only Monday...

QUOTABLE, Vice President Joe BidenJoseph (Joe) Robinette BidenOvernight Tech: FCC won't delay net neutrality vote | Google pulls YouTube from Amazon devices | Biden scolds social media firms over transparency Medicaid funds shouldn't be used to subsidize state taxes on health care Biden hits social media firms over lack of transparency MORE, recalling a meeting he had with Vladimir Putin, to the New Yorker: "I said, 'Mr. Prime Minister, I'm looking into your eyes, and I don’t think you have a soul.' He looked back at me, and he smiled, and he said, 'We understand one another.'" http://nyr.kr/1wQ5pHq.

RUSSIAN BILLIONAIRES BLAST PUTIN. Bloomberg reports: “Russia’s richest businessmen are increasingly frantic that President Vladimir Putin’s policies in Ukraine will lead to crippling sanctions and are too scared of reprisal to say so publicly, billionaires and analysts said.

“If Putin doesn’t move to end the war in Ukraine in the wake of last week’s downing of a Malaysia Air jet in rebel-held territory, he risks becoming an international outcast like Belarus’s Aleksandr Lukashenko, whom the U.S. famously labeled Europe’s last dictator, one Russian billionaire said on condition of anonymity. What’s happening is bad for business and bad for Russia, he said.” http://bloom.bg/1k82HNy.

-- MEANWHILE, back here in the States, K Street has quieted down on opposing Russia sanctions. My story from over the weekend: “Business groups such as the Chamber of Commerce and The National Association of Manufacturers (NAM) have resisted broad, sectoral sanctions against the Russian economy, arguing the step would backfire on U.S. businesses.

“Both groups have blanketed Washington with ads opposing unilateral sanctions against Russia. But the crash of the Malaysia Airlines flight — which killed nearly 300 civilians, including infants and one American — could change the calculus...

“Richard Sawaya, director of USA*Engage, which also was critical of the administration's sanctions, said that business groups are ‘watching to see what happens next.’ 

"’The plane incident is a different order — it means everybody should step back and re-calibrate,’ Sawaya said.” http://bit.ly/1wS9Y4f.

HAPPY B-DAY, DODD-FRANK! That’s right... everybody’s favorite (or least favorite) financial reform law turns four-years-old this week. Pete Schroeder for the hometown paper:

“Democrats and Republicans returned to familiar partisan corners on Monday as they duked it out over the four-year anniversary of the Dodd-Frank financial reform law.

“The arguments leveled by both sides made clear that the passage of time has done little to close the partisan gulf between the parties on whether the law, and the reams of new regulations it created, were the proper response to the financial crisis...

“Republicans on the House Financial Services Committee commemorated the anniversary of the financial overhaul by releasing a nearly 100-page report detailing what they said are its shortcomings. Committee Democrats fired back with a report of their own, highlighting the work regulators have done and their impact on the marketplace.”

-- RT Bloomberg’s Silla Brush @sabrush: “two weeks of dueling conferences and dueling staff reports on dodd-frank 4 yrs later. will this happen every year?”

-- Pete’s storyhttp://bit.ly/1kN0ceh GOP’s reporthttp://1.usa.gov/1wQZi5ODems’ reporthttp://1.usa.gov/1o1POnJ.

MEANWHILE... THE CFPB EXPANDS, Tim Devaney reports: “The Consumer Financial Protection Bureau (CFPB) will begin looking into complaints about prepaid cards, the agency announced Monday.

“The CFPB already investigates complaints about traditional credit cards, mortgages, auto loans, student loans, bank accounts, credit reporting, debt collection, and payday loans. Now, the CFPB will also expand its reach to prepaid cards, which could include gift cards, employee benefits cards for healthcare and transit payments, and general purpose reloadable cards.” http://bit.ly/1zYB6Tq.

-- TOO MUCH TOO SOON? CFPB’s Monday blitz didn’t sit too well for some in the financial groups, such as the National Association of Federal Credit Unions. “NAFCU reiterates its concerns surrounding the consumer complaint database and the potential for great reputational harm stemming from unverified consumer complaints,” said Mike Coleman, NAFCU director of regulatory affairs.

MARK YOUR CALENDARS – Here’s what’s happening this week in our financial services world, along with a preview of the week ahead: http://bit.ly/1zYDyta. And click here to subscribe to have it delivered in your inbox every Friday: http://thehill.com/signup/48.


MORE HIGHWAY TRUST ISSUES, Keith Lang reports: “A bipartisan group of 12 current and former U.S. transportation secretaries is urging Congress to approve a long-term infrastructure funding bill to improve the nation's road and public transit systems.

“The secretaries, who served under Presidents Lyndon Johnson, Gerald Ford, Ronald Reagan, George H.W. Bush, Bill ClintonWilliam (Bill) Jefferson ClintonMueller’s probe doesn't end with a bang, but with a whimper Mark Mellman: History’s judgment Congress should massively ramp up funding for the NIH MORE, George W. Bush, and Barack ObamaBarack Hussein ObamaPatagonia files suit against Trump cuts to Utah monuments Former Dem Tenn. gov to launch Senate bid: report Eighth Franken accuser comes forward as Dems call for resignation MORE, said a temporary transportation funding bill that is being considered by Congress is insufficient.”http://bit.ly/1kN37mY.

DAILY DISTRACTION -- #PATERNITYLEAVEPROBLEMS, via Rebecca Gale for Roll Call: “House Minority Leader Nancy Pelosi, D-Calif., provides her staffers with 12 weeks paid paternity or maternity leave.

Speaker John A. BoehnerJohn Andrew BoehnerJohn Feehery: A political forest fire Trump's pick for Federal Reserve chief is right choice at right time The two-party system is dying — let’s put it out of its misery MORE’s office offers two weeks of paid maternity or paternity leave as part of the national Family Medical Leave Act; the remaining 10 weeks are unpaid, though the Ohio Republican’s staff can use accrued vacation and sick days... In the House, there are 435 policies for 435 different member offices.” http://bit.ly/1sGAwrk.

SAN FRAN FED: IT STINKS TO GRADUATE IN A RECESSION. But you, determined and ambitious Hill staffers, already knew that. The Wall Street Journal’s Ben Leubsdorf reports:

“From 2007 to 2014, the median weekly earnings of full-time U.S. workers rose 15%. Over the same period, the earnings of recent college graduates with full-time jobs rose just 5.9%. Both figures are unadjusted for inflation,” according a report released today from the San Francisco Federal Reserve. http://on.wsj.com/1wSc7g6.


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