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Presented by ExxonMobil: Delivered daily by 8 a.m., Morning Money examines the latest news in finance politics and policy. | | | | | |  | | By Ben White and Aubree Eliza Weaver | Presented by |  | | Editor’s Note: Morning Money is a free version of POLITICO Pro Financial Services' morning newsletter, which is delivered to our s each morning at 6 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day’s biggest stories. Act on the news with POLITICO Pro. | | | Tanden out at OMB. So who is in? — No real surprise that Neera Tanden pulled herself from consideration for the key White House post of director of the Office of Management and Budget. Tanden did not have the votes and Sen. Lisa Murkowski (R-Alaska) was really her only hope. CNN’s Jake Tapper Tweeted that Murkowski indicated to the White House that she was a “no.” Tanden is likely to get another non-Senate confirmed post in the administration, assuming she wants it. As our Sam Stein notes, the top candidates for the post now include Ann O’Leary, a former top Hillary Clinton aide, and Gene Sperling, former top adviser to Presidents Bill Clinton and Barack Obama. Many Hill Democrats want Shalanda Young, who did a star turn Tuesday in her hearing for the number two spot at OMB and has years of experience on the House Appropriations committee and would add to diversity at the top of the economic team. Young won praise from both Republicans and Democrats on Tuesday and is clearly the front-runner. Also per Sam : “Barring an unexpected development, Tanden’s withdrawal will mean that Biden’s Cabinet will include just one Asian-American Pacific Islander. The chair of the Congressional Asian Pacific American Caucus, Rep. Judy Chu (D-Cali.), called that development a “tragedy.’” But don’t rule out Gene — A number of senior Democratic sources MM talked to Tuesday night said it would be tough for Biden to nominate an older white guy for the OMB slot especially with Young so well teed-up. But Sperling has lots of fans in the White House (including Klain) and a deep well of experience on the budget issues and broader economic strategy. And there is already a fair amount of diversity on the economic team with Susan Rice at the top of the Domestic Policy Counsel, Cecilia Rouse as the first Black chair of the Council of Economic Advisers and Janet Yellen as the first female Treasury Secretary. Said one top Dem: “Biden has done a great job either way on diversity. Though [Young] would be a historic pick and I am sure she must be a remarkable talent to have the support she has.” Sperling picked up some significant support and praise on the left on Tuesday including from Rep. Ro Khanna (D-Calif.), Ezra Klein, Dean Baker, Robert Reich and Zephyr Teachout . (More on this below.) GOOD WEDNESDAY MORNING — Happy Hump Day everyone. Email me on bwhite@politico.com and follow me on Twitter @morningmoneyben. Email Aubree Eliza Weaver on aweaver@politico.com and follow her on Twitter @AubreeEWeaver. | | | | A message from ExxonMobil: As part of our ongoing commitment to help mitigate the risks of climate change, we plan to further reduce emissions in our operations by 2025. Our plans are expected to reduce our absolute upstream greenhouse gas emissions by an estimated 30%, compared to 2016 levels. Learn more about the details of our plan to reduce our emissions. | | | | | | President Biden has a bipartisan meeting on cancer legislation at 1:45 p.m. and a virtual event at 5:00 p.m. with the House Democratic Caucus … Senate Finance expected to approve the nominations of Katherine Tai to be U.S. Trade Representative and Adewale “Wally” Adeyemo to be Deputy Secretary of Treasury … ADP employment at 8:15 a.m. expected to show a gain of 200K SHALANDA YOUNG DAZZLES — Our Jennifer Scholtes: “Republican senators turned Shalanda Young’s confirmation process … into a dress rehearsal for replacing Neera Tanden as … Biden’s pick to run the White House budget office. “During Young’s first confirmation hearing to be deputy director of [OMB], GOP lawmakers boosted her as an alternative to Tanden, just hours before the White House withdrew Tanden’s nomination … ‘You’ll get my support, maybe for both jobs,’ Sen. Lindsey Graham (R-S.C.) told Young. … In her prior role as staff director for the House Appropriations Committee, Young developed a sterling reputation among lawmakers from both parties as she led negotiations on bipartisan funding deals” NEW FIN-TECH LOBBY GROUP EMERGES — Our Victoria Guida scoops: “A large group of financial technology companies is pooling their lobbying power in the face of growing skepticism in Washington about the promise of fintech, as well as a lengthening list of policy issues that will shape their collective futures. “The Marketplace Lending Association and the Online Lending Policy Institute have merged to form the American Fintech Council, with an aim ‘to promote policies that advance responsible innovation and inclusivity within financial services,’ according to a press release from the new group provided to POLITICO.” | | | | DON'T MISS "THE RECAST": Power dynamics are changing. "Influence" is changing. More people are demanding a seat at the table, insisting that all politics is personal and not all policy is equitable. "The Recast" is our new, twice-weekly newsletter that breaks down how race and identity are recasting politics, policy, and power in America. And POLITICO is recasting how we report on this crucial intersection, bringing you fresh insights, scoops and dispatches from across the country, and new voices that challenge "business as usual." Don't miss out on this important new newsletter, SUBSCRIBE NOW. Thank you to our sponsor, Intel. | | | | | ROUSE CONFIRMED — Our Megan Cassella: “The Senate confirmed Cecilia Rouse on … to become chair of the White House Council of Economic Advisers, making her the first Black person to serve in that role in the body’s 74-year history. “Rouse will serve as a top economic adviser to .. Biden as the administration races to limit the fallout from the worst economic downturn since the Great Depression. A labor economist by training, Rouse will be playing a key role as the country reels from an unemployment crisis that has left more than 10 million Americans out of work. The Senate voted 95-4 in favor of her confirmation.” CONSUMER CONFIDENCE RISES, ESPECIALLY IN TEXAS — Via Morning Consult's daily Index of Consumer Sentiment: “Consumer confidence increased across 45 states in February, indicating that the speed of vaccinations and the strength of the economic recovery are boosting confidence across the country. Despite the energy crisis in the middle of the month, consumers in Texas consistently grew more optimistic in the economy over the course of February” PPP LACKS KEY DATA — Our Zachary Warmbrodt: “Biden is making sweeping changes to Washington's biggest relief program for small businesses to help ensure that it reaches people of color and others hit hardest by the pandemic. Trouble is, he'll never really know how much his efforts made a difference. “The Small Business Administration, which runs the Paycheck Protection Program, is facing massive data gaps in how more than $660 billion in loans have been distributed because it does not require business owners to report demographic information when they apply for aid.” GENSLER TO RAISE PRESSURE ON CORPORATIONS — Also via Zach: “Gary Gensler … Biden's pick to head the [SEC] signaled … that the agency would raise pressure on corporations to disclose their political spending activities, a long-running tension between SEC officials, big business and Democrats.” | | | |   | | | | | | STOCKS DRIFT LOWER — AP’s Stan Choe, Damian J. Troise and Alex Veiga: “Stocks closed broadly lower on Wall Street Tuesday, giving back some of their big gains from a day earlier. The S&P 500 fell 0.8 percent after earlier flipping between small gains and losses. "A day before, the benchmark index had leaped 2.4 percent for its best performance since June. Technology and internet stocks accounted for much of the selling, a reversal from a day earlier.” REGIONAL BANK STOCKS RISE — WSJ’s Amber Burton: “Investors are living in a bond world. But bank stocks are enjoying a renaissance, too. U.S. bond yields have risen at a fast clip. The yield on the 10 year Treasury rose to 1.459 percent in February, the largest one-month gain since 2016. “The bond yield started February at 1.007 percent. That rise has also been good for bank stocks, since higher rates typically mean higher profits. The KBW Nasdaq Bank Index is up 19 percent so far this year. The KBW Nasdaq Regional Banking Index is up 25 percent.” | | | | A message from ExxonMobil: We’ve announced plans to reduce the intensity of our emissions, which we expect to reduce our absolute upstream greenhouse gas emissions by an estimated 30%, compared to 2016 levels. Similarly, absolute flaring and methane emissions are expected to decrease by 40-50%. Through continued application of operational efficiencies and deployment of lower-emission technologies, such as carbon capture, our plans drive meaningful near-term emission reductions and are consistent with the goals of the Paris Agreement. Learn more about the details of our plan to reduce our emissions. | | | | | | AUDITOR FINDS PPP AT HIGH-RISK FOR FRAUD — AP’s Kevin Freking: “Emergency loans made to small businesses during the coronavirus pandemic have been added to a list of government programs considered at high risk of waste, fraud or mismanagement. “The most common of those emergency loans, PPP loans, are provided at a low interest rate and are fully forgivable under conditions that include spending a certain percentage on payroll costs. The loans were created by Congress and have proven exceedingly popular as shops, restaurants and other small businesses try to survive the pandemic.” BIDEN’S CFPB PICK TO FOCUS ON BORROWERS STRUGGLING DURING PANDEMIC — WSJ’s Andrew Ackerman and AnnaMaria Andriotis: “Rohit Chopra … Biden’s pick to head the Consumer Financial Protection Bureau, said he would seek to protect Americans struggling with debt amid the coronavirus pandemic from potential abuses by lenders. FED STARTS TO ACKNOWLEDGE IT HAS AN EYE ON TUMULT IN THE BOND MARKET — NYT’s Jeanna Smialek: “Lael Brainard, one of the Federal Reserve’s Washington-based governors, on Tuesday offered the first major hint that a wild ride in bond markets over the past week may have raised alarms at the U.S. central bank. CHIEF GOLDMAN LAWYER DEPARTS AMONG OTHER SENIOR EXITS AT THE BANK — Bloomberg’s Sridhar Natarajan: “Karen Seymour, who sent Martha Stewart to prison as a prosecutor and then went on to help Goldman Sachs executives stay out of trouble, is exiting the bank. Seymour is leaving as Goldman Sachs Group Inc.’s general counsel, one of the most prominent and challenging legal jobs in the corporate world” | | | TRANSITIONS — Per release: “Joseph Cortina, formerly director of federal government affairs for The Independent Insurance Agents & Brokers of … has joined the Sternhell Group as a principal advising financial services clients” … Rachael Baitel is now chief of staff at healthcare firm Russell Street Ventures. She most recently served as deputy chief of staff at the U.S. International Development Finance Corporation and is a USAID, White House and Goldman Sachs alum … Marisol Garibay is now VP of Communications at NAFCU … Dana Wade , the former Commissioner of the Federal Housing Administration (FHA) has joined Walker & Dunlop to lead Housing and Urban Development (HUD) backed loan originations for the firm…. Sheryl Pardo has joined the Housing Policy Council (HPC) as Senior Vice President of Public Affairs. BANK BUSINESS LENDING RISES — Via the Financial Services Forum: “The nation’s largest banks increased credit to businesses and households by $785 billion, or 10 percent, during 2020 … disputing suggestions that banks have not provided credit to the economy during the pandemic.” NEW ON THE BOOKSHELVES — Karen Petrou’s new book, out today: “‘ENGINE OF INEQUALITY : The Fed and the Future of Wealth in America’ examines the powerful link between rising inequality and financial policy, and proposes several meaningful policy reforms that don’t require an act of Congress.” | | | | JOIN TODAY FOR A PLAYBOOK INTERVIEW WITH NRCC CHAIR TOM EMMER : House Republicans surprised many observers in November flipping 15 seats and defeating several Democratic freshmen who delivered the House majority in 2018. Then the Jan. 6 insurrection set off an internal battle within the GOP, including among top House leaders. Join Playbook co-author Rachael Bade for a conversation with Rep. Tom Emmer (R-Minn.), chair of the National Republican Congressional Committee, to discuss his strategy for the 2022 midterm elections, President Donald Trump's role in the party, and the continued fallout from the assault on the Capitol. REGISTER HERE | | | | | | | | | Follow us on Twitter | | | | Follow us | | | | |  |
