Overnight Finance: GOP chairman rolls out Dodd-Frank reforms

HENSARLING ROLLS OUT DODD-FRANK REPLACEMENT: A leading House Republican has unveiled the GOP plan to regulate Wall Street and replace the Dodd-Frank financial reform law.

A new bill introduced by House Financial Services Committee Chairman Jeb Hensarling (R-Texas) would fundamentally remake the financial regulation landscape, and eradicate major pieces of President Obama's Wall Street reform law.

Congressional Republicans have considered dozens of smaller bills tweaking the sweeping 2010 law. But Hensarling's latest proposal marks the broadest, most ambitious effort yet by the GOP to change how Wall Street and Washington interact. Hensarling detailed the bill in remarks delivered to the Economic Club of New York Tuesday morning.

"Simply put, Dodd-Frank has failed. It's time for a new legislative paradigm in banking and capital markets," he said. The Hill's Peter Schroeder tells us what it would do: http://bit.ly/1TU6ABx.

DEMS SLAM GOP PLAN: Democrats were quick to heap scorn on a new GOP plan to change how the government regulates Wall Street, calling it a giveaway to big banks.

Rep. Maxine Waters (D-Calif.), the top Democrat on the House Financial Services Committee, said a plan offered Tuesday by her Republican counterpart is exactly the wrong policy.

"The Chairman's proposal takes a page from Donald TrumpDonald John TrumpTrump defends Stephanopolous interview Trump defends Stephanopolous interview Buttigieg on offers of foreign intel: 'Just call the FBI' MORE's casino playbook by gambling with the American economy," she said in a statement. "We cannot allow Republicans to take us back to the depths of the financial crisis by weakening regulatory oversight and giving banks the tools to game the system once again."

And Sen. Sherrod BrownSherrod Campbell BrownCongress can defend against Russia by outlawing anonymous shell companies Democrats ask Fed to probe Trump's Deutsche Bank ties Democrats ask Fed to probe Trump's Deutsche Bank ties MORE (D-Ohio), the top Democrat on the Senate Banking Committee, offered a similar sentiment.

"We've made too much progress to let special interests and their Congressional allies undermine reform and once again leave Americans exposed to the abusive lending and risky Wall Street gambling that almost destroyed our economy," he said: http://bit.ly/1t6ylA0.

TRUMP SIT-DOWN WITH HENSARLING: Presumptive Republican presidential nominee Donald Trump is meeting with House Financial Services Committee Chairman Jeb Hensarling (R-Texas) on Thursday to discuss the House GOP's effort to replace Dodd-Frank, according to Bloomberg: http://bit.ly/1UdeTfe.

RYAN RELEASES ANTI-POVERTY PLAN: Speaker Paul RyanPaul Davis RyanIndiana GOP Rep. Brooks says she won't seek reelection Indiana GOP Rep. Brooks says she won't seek reelection Inside Biden's preparations for first debate MORE (R-Wis.) on Tuesday began rolling out his promised election-year policy agenda, beginning with an anti-poverty plan that centers on work rather than welfare.

Questions about presumptive Republican presidential nominee Donald Trump's racially charged attacks on a federal judge threatened to upstage the carefully orchestrated event at a drug and alcohol rehabilitation facility in Washington, D.C.'s Anacostia neighborhood.

But the Speaker tried his best to turn the media spotlight, albeit briefly, on poverty and upward mobility issues that he's worked on for decades.

At an apartment complex run by the House of Help City of Hope charity, Ryan and other House GOP leaders proposed overhauling federal food, housing and unemployment programs by imposing stricter work requirements and giving states a greater say in determining who gets the aid.

"The problem we have had in government is that for too long we think the way to fight poverty is to treat its symptoms. And when we treat the symptoms of poverty, we perpetuate poverty," Ryan, sporting no tie or jacket, told reporters after a roundtable discussion with residents in a basement of the apartment complex. The Hill's Scott Wong breaks it down: http://bit.ly/1WDKetJ.

HAPPY TUESDAY and welcome to Overnight Finance, where we're waiting for a #BetterWay to keep track of all of the craziness. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

Tonight's highlights include high hope for the Indian prime minister's visit to Washington, a bipartisan bill for retirement savings and a boost for DC's minimum wage.

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.


  • House Financial Services Committee Task Force on Terrorism Funding: Hearing entitled "The Enemy in our Backyard: Examining Terror Funding Streams from South America," 9 a.m. http://1.usa.gov/1O7Ek1v.
  • House Ways and Means Health Subcommittee: Member Day hearing on Medicare reform legislation, 2 p.m., http://1.usa.gov/1srR3Sy.

HIGH STAKES FOR INDIAN PM'S VISIT: U.S. business groups are pushing Indian Prime Minister Narendra Modi to finally deliver on promises to eliminate trade and economic barriers as he arrives in Washington on Tuesday for a crucial visit.

The National Association of Manufacturers (NAM) and Telecommunications Industry Association (TIA) are among the groups pressuring India to take action on lowering tariffs and ramping up intellectual property rights protections. They say the lack of movement on those issues is undermining the U.S.-India relationship.  

Linda Dempsey, vice president of international economic affairs for NAM, said that from her group's perspective, the prime minister's visit to Washington represents an opportunity for Modi to take steps to further open India's economy.
"Modi needs to take concrete steps on important systemic barriers that are impeding the stronger commercial relationship we want to have with India," Dempsey said.

"We would hope that this is an opportunity for the prime minister to come to Washington and say he wants to move forward on all his policies," she said. The Hill's Vicki Needham explains: http://bit.ly/1YdlV5p.

DC CITY COUNCIL APPROVES $15 MIN WAGE: The City Council of Washington, D.C., on Tuesday voted to raise the minimum wage to $15 an hour, WTOP reported.

Mayor Muriel Bowser has said she will sign the bill, which will raise the wage gradually through 2020: http://bit.ly/1rc0ILK.

BILL WOULD HELP GRAD STUDENTS SAVE FOR RETIREMENT: Liberal Sen. Elizabeth WarrenElizabeth Ann WarrenJulián Castro defends going on Fox: I'm focused on 'the people out there watching' Julián Castro defends going on Fox: I'm focused on 'the people out there watching' O'Rourke unveils plan to support women, minority-owned businesses MORE (D-Mass.) and conservative Sen. Mike LeeMichael (Mike) Shumway LeeOvernight Defense: Latest on House defense bill markup | Air Force One, low-yield nukes spark debate | House Dems introduce resolutions blocking Saudi arms sales | Trump to send 1,000 troops to Poland Overnight Defense: Latest on House defense bill markup | Air Force One, low-yield nukes spark debate | House Dems introduce resolutions blocking Saudi arms sales | Trump to send 1,000 troops to Poland Senators clinch votes to rebuke Trump on Saudi arms sale MORE (R-Utah) have teamed up on a bill to help graduate students start saving for their retirement.

The pair rolled out legislation on Tuesday that would allow graduate students to save funds from their stipends or fellowships in tax-preferred Individual Retirement Accounts (IRAs). Currently, stipend funds are taxed as income but cannot be put into an IRA because they are not considered "compensation."

"We should be encouraging young adults to start saving early for retirement, but that's a lot tougher than it should be for graduate students who can't tuck away some of their income into tax-deferred accounts," Warren said in a news release. "This bipartisan bill will open an important opportunity for graduate students and postdoctoral fellows who want to start building their retirement savings."

The bill has the support of a number of stakeholder groups, including Fidelity Investments, the National Association of Graduate-Professional Students and the Service Employees International Union. The Hill's Naomi Jagoda reports: http://bit.ly/1TXROz2.

US-EU BIZ GROUPS JOIN TO EASE REGULATION: Fourteen international trade associations and business groups on Tuesday announced the formation of a new coalition that is aiming to improve regulatory cooperation between the United States and the European Union.

The Transatlantic Financial Regulatory Coherence (TFRC) coalition, which represents a large portion of the transatlantic financial services community, wants to ensure that a strong financial regulatory framework is included in the Transatlantic Trade and Investment Partnership (TTIP).

The new coalition has identified three principles to focus on that will provide the best chance for regulatory coherence and should be included in the TTIP: discussing the policymaking process at an early stage, concentrating on future policymaking and regulatory development and ensuring transparency and accountability. Vicki Needham walks us through it: http://bit.ly/1YdlkAM.

IRS RELAUNCHES WEB TOOL AFTER DATA BREACH: The Internal Revenue Service (IRS) on Tuesday formally relaunched its "Get Transcript Online" service, following last year's data breach that compromised the sensitive information of hundreds of thousands of taxpayers.

The web service, which allows taxpayers to access documents that summarize their tax returns, had been disabled last May, after the IRS discovered the breach.

The new "Get Transcript" web feature uses a multi-factor authentication process. This enhanced authentication process is scheduled to be applied to other IRS web tools later in the year, and meets security standards set by the National Institute of Standards and Technology and the Office of Management and Budget, the IRS said: http://bit.ly/1TU6euO.

DEM PUSHES TO EXPAND LOW-INCOME TAX CREDIT: Sen. Sherrod Brown (D-Ohio) on Tuesday urged Democrats to stand their ground on matters concerning helping working families and called for a further expansion of a tax credit that helps low-income workers.

"We must make supporting working families a precondition to our cooperation," Brown said at an event to be hosted by the Center for American Progress Action Fund.

The event was held on the same day that House Republicans unveiled a plan to fight poverty. It also came one day after The Associated Press said that Hillary ClintonHillary Diane Rodham ClintonHouse Intel Republican: 'Foolish' not to take info on opponent from foreign ally House Intel Republican: 'Foolish' not to take info on opponent from foreign ally It's about the delegates, stupid MORE has the delegates needed to become Democratic presidential nominee. Brown has endorsed Clinton and is seen as a possible running mate for her due to his progressive credentials: http://bit.ly/1X9bdNY.

Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com; pschroeder@thehill.com, and njagoda@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill; @PeteSchroeder; and @NJagoda.