BREAKING NOW – GOP EX-IM INFIGHTING ESCALATES. You read it here first. Heritage Action criticized Rep. Chris Collins (R-N.Y.) on Monday, saying his company benefitted from the Export Import Bank and calling it an example of "Washington working for itself."
Collins is a co-founder and still serves of the board of directors for Audubon Machinery Corporation, which reported a combined $8.33 million in capital guarantees and trade insurance between 2007 and 2014 from Ex-Im.
Collins and other GOP House members are circulating a letter among his colleagues urging leadership to reauthorize Ex-Im, which expires in September. The letter is endorsed by the U.S. Chamber of Commerce and National Association of Manufacturers.
--HERITAGE SPOKESMAN DAN HOLLER: "Here’s Rep. Collins leading the charge of an entity that he’s personally benefitted from. That’s the definition of Washington working for itself. It reaffirms a negative suspicion on the political class here. Americans might rightly think that’s outrageous.”
--COLLINS FIRES BACK: “This shows how out of touch Heritage is with how jobs are created in this country. They don’t know what they’re talking about. They’re a think tank. They’re not out in the real world. They’re not creating jobs and employing workers. They don’t know how things work. It’s as simple as their ignorance.”
--THE BOTTOM LINE: Holler and Collins’ public sparing underscores just how far apart the critics and the GOP establishment are on Ex-Im. Heritage has criticized Ex-Im as “corporate welfare,” and “cronyism,” while establishment Republicans view it as an economic engine.
TOMORROW STARTS TONIGHT – WHITE HOUSE STUDENT LOAN PROPOSAL. Smart policy or politics as usual? Pete Schroeder for the hometown paper: “The White House and Senate Democrats are seeking to make relief for student loan borrowers a pivotal issue in the 2014 elections.
“President Obama on Monday signed an executive order to allow 5 million more borrowers to qualify under a student loan repayment program that caps student loan payments to 10 percent of a person’s discretionary income...
“Separately, the Senate is set to vote on Democratic legislation that would allow student loan borrowers to refinance their existing loans at a lower rate. The twin efforts come amid signs that crushing student loan debt is holding back the economy and preventing people from entering the middle class and buying first homes.” http://bit.ly/1qjrwEx
...OBAMA’S STUDENT-LOAN PLAN BAD FOR HOUSING? Jaret Seiberg, at Guggenheim Partners, in a note to subscribers:
“For us, this is a modest negative for housing. High student loan debt is a major obstacle to getting a mortgage. This suggests that some students will take even longer to repay those student loan debts.
“That means backend debt-to-income [DTI] ratios – the measurement of all debt to all income – will be higher for longer. That makes qualifying for a mortgage harder as, in general, underwriting rules make it tougher for those with backend DTIs above 43% to get a mortgage.”
...FLASHBACK: PAUL RYAN, speaking at the Republican National Convention, Aug. 29, 2012: “College graduates should not have to live out their 20s in their childhood bedrooms, staring up at fading Obama posters and wondering when they can move out and get going with life.”
SPORTS BLINK: IS BRAZIL READY FOR THE WORLD CUP? We haven’t seen this much bad press for a host country since Russia’ hosted the Winter Olympics.
“The stadiums are wonderful but the hospitals and schools aren’t that wonderful.” -Carlos Eduardo Lins da Silva, of the Sao Paulo Research Foundation, at a forum hosted by The Woodrow Wilson Foundation.
SIGN OF THE TIMES – MILLENNIAL EDITION: The National Press Club hosted a panel today dubbed: "What it might mean as Baby Boomers grow older while Millennials face a potentially lower standard of living than their parents."
SHOT: Fannie Mae officials said today that Americans’ economic uncertainty is stalling the housing recovery, according to a Fannie Mae survey released today. Story,via The Hill: http://bit.ly/1mwEMlj.
CHASER, via Larry Summers in FT: “Atif Mian and Amir Sufi’s House of Debt... looks likely to be the most important economics book of 2014... [It] is important because it persuasively demonstrates that the conventional meta-narrative of the crisis and its aftermath, which emphasizes the breakdown of financial intermediation, is inadequate...
“Their story of the crisis blames excessive mortgage lending, which first inflated bubbles in the housing market and then left households with unmanageable debt burdens. These burdens in turn led to spending reductions and created an adverse economic and financial spiral that ultimately led financial institutions to the brink.” http://on.ft.com/1pW4rKO.
QUOTABLE, former Secretary of State Hillary ClintonHillary Diane Rodham ClintonBen Affleck: Republicans 'want to dodge the consequences for their actions' through gerrymandering Republican Ohio Senate candidate slams JD Vance over previous Trump comments Budowsky: Why GOP donors flock to Manchin and Sinema MORE in her ABC News interview that airs tonight at 9 p.m., defending her big-money speeches:
"We came out of the White House not only dead broke, but in debt. We had no money when we got there, and we struggled to, you know, piece together the resources for mortgages, for houses, for Chelsea's education.
“You know, it was not easy. Bill has worked really hard — and it's been amazing to me — he's worked very hard. First of all, we had to pay off all our debts, which was, you know, he had to make double the money because of obviously taxes and then pay off the debts and get us houses and take care of family members." http://abcn.ws/1jeR7d6.
NOTABLE, via Time’s Zeke Miller: “[The Clinton’s] own at least two homes... both purchased at the tail-end of their time in the White House. According to estimates by the real estate website Zillow, the Washington home is worth more than $5.4 million, while the Chappaqua home is worth almost $7 million.” http://ti.me/1qhwB05
DAILY DISTRACTION (6 min.) – Conservative teddy bears (with creepy voices) explain quantitative easing. http://bit.ly/JD2Eb8 (H/T Thorn Run Partners).
TARULLO SIGNALS SHORT-TERM FUNDING MARKET REQUIREMENT, via WSJ’s Ryan Tracey: “Federal Reserve Gov. Daniel Tarullo offered his strongest signal yet that a new requirement for the short-term funding markets widely used on Wall Street may soon be coming.
“Mr. Tarullo, who plays a central role in setting the Fed’s regulatory agenda, said, after reading accounts of the role short-term markets played in the financial crisis, a ‘broadly applicable’ minimum margin requirement makes sense.” http://on.wsj.com/1pXDiqJ.
ON-TAP FOR TOMORROW – CFPB TO SENATE BANKING. The House Financial Services Committee will hold another Consumer Financial Protection Bureau (CFPB) hearing tomorrow. But the real show will be when CFPB Director Richard Cordray delivers his fifth semi-annual report to Congress tomorrow at 10:30 a.m. (note the time change, wonks).
Two quick points:
1.) Will Banking GOPers grill him about CFPB’s discrimination charges? Up until this point, only House Financial Services members have had the chance to put CFPB officials in the Hill hot seat over allegations that agency officials racially discriminated in promoting employees, allegations the Bureau vehemently denies.
2.) Will Warren get wrangled in race discrimination banter? The CFPB is Sen. Elizabeth WarrenElizabeth WarrenHillicon Valley — Presented by Connected Commerce Council — Incident reporting language left out of package Exporting gas means higher monthly energy bills for American families Senators turn up the heat on Amazon, data brokers during hearing MORE’s (D-Mass.) political trophy, which she touts every chance she gets when delivering speeches as proof that she’s enacted change in Washington. (She might get a second trophy this week if the Senate passes her controversial student loan bill.)
But up until now, Warren has largely been able to stay out of the racial discrimination allegations that have rocked the agency. That could change if her Republican Banking colleagues turn up the heat.
ICYMI: FRIDAY’s JOBS REPORT DOES LITTLE FOR DEMS IN MIDTERM. Vicki Needham and I report for the hometown paper:
“It’s the third month in a row of strong job growth for the economy, something that should put some wind behind President Obama’s sails in the months before November.”
Why? We asked...
-- Robert J. Shapiro, former principal economic adviser to President Clinton: “Obama came in and said he would make things better. He did make things better, but he didn’t make them anywhere near as they had been in the ‘80s and ‘90s and that’s still people’s reference... There's an advantage to the Republicans, no doubt about it.”
-- Mark Zandi, chief economist at Moody’s: The key to future economic growth is the “vitally critical” expansion of the housing sector. STORY: http://bit.ly/1pW0zJF.
DUFFY STAFFER IN FINLAND. Amie Woeber, staffer to House Financial Services member Rep. Sean DuffySean Duffy'Fox & Friends Weekend' hosts suggest new variant meant to distract from Biden's struggles Trump pushing ex-Rep. Duffy to run for Wisconsin governor Fox News signs book deal with HarperCollins MORE (R-Wis.), traveled to Finland last week. Duffy, the former MTV ‘Real World-er’ turned congressman, was recently appointed to House Foreign Affairs.
Why Finland? Duffy spokeswoman Cassie Smedile tells OVERNIGHT FINANCE:
“The volatile situation with Russia and Ukraine is of great concern for the United States and our allies in the region, not the least of which is Finland. Where the President has faltered in his conversations with those governments, this education exchange also provides an opportunity to better understand the situation from the perspective of our allies in the area.
“Mr. Duffy is the co-chair of the House Finnish Caucus and Amie is taking part in an educational trip on Mr. Duffy's behalf as part of our on-going effort to better connect with this strong American ally. In fact, the Finnish Ambassador visited [Duffy’s] District this past winter to witness the International Birkebeiner Competition which is a great tradition of the Northwoods.”
MORE FROM THE HILL’s FINANCE TEAM:
--Bowen sworn in at CFTC: http://bit.ly/1s1amA4
--Senate panel to dig in to high-frequency trading: http://bit.ly/1xXqSptd
--Republicans: IRS file swap likely broke the law: http://bit.ly/1pXr7dH
--Business groups seek passage of expensing legislation: http://bit.ly/1nuxPod
--House eyes CFTC tweaks: http://bit.ly/1s0oZnp
--Analysis: Teen employment hits 8-year high in May: http://bit.ly/1pwJZ0K
--Regulators taken to court over ‘Choke Point’: http://bit.ly/1kGCZ0w
--Postmaster General OK with GOP transportation plan: http://bit.ly/1pdje3J
--House GOP unveils $34B energy spending bill: http://bit.ly/1qidXVY
--House Dems say 3 million cut off from jobless benefits: http://bit.ly/1s1aqzO
This story was updated at 7:54 p.m.