Coming soon: Trump’s tax returns — The House and Ways Committee on Tuesday voted to release six years of former President Donald Trump’s tax returns, following a years-long legal battle. Wall Street’s wins in the omnibus — The finance industry scored a number of lobbying victories in the $1.7 trillion omnibus spending bill revealed early Tuesday. — The biggie — The package includes a sweeping revamp of retirement savings rules designed to encourage more Americans to grow their nest eggs in the market — a potential boon to asset managers and brokers. The retirement section of the bill would, among other things, allow employers to automatically enroll workers in 401(k) plans, delay when people are required to start withdrawing money from tax-deferred accounts and allow older workers to make larger catch-up retirement contributions. — Under the radar — The package also includes language that would encourage the SEC to redo economic analysis for a proposed private fund regulation. Why it matters : Drew Maloney, who represents private equity firms as president and CEO of the American Investment Council, said the request “proves once again that there is growing bipartisan concern that [SEC Chair Gary Gensler] is moving too fast on extreme regulations without considering how proposals will impact small businesses and private investment.” Japan rate hike rattles markets — FT: “The Bank of Japan caught investors by surprise with an unexpected change to a core tenet of its monetary policy, sending shockwaves across the currency, bond and equity markets.” “Traders described an adjustment to the longstanding yield curve control measures as potentially marking a ‘pivot’ by the BoJ, the last of the world’s leading central banks to stick to an ultra-loose regime.” The lesson — Colin Ellis, managing director at Moody’s Investors Service, said the market reaction to the Bank of Japan shift “serves as a reminder that unexpected policy actions — even if they are relatively small — can trigger large movements in asset prices, including exchange rates and sovereign bond yields.” “As economic and financial uncertainty persists over the coming months, bouts of volatility will be swiftly transmitted across regions and asset classes, given the interconnectedness of markets.” Wells Fargo to pay historic CFPB fine — Our Katy O’Donnell: “Wells Fargo will pay $3.7 billion to settle allegations by the Consumer Financial Protection Bureau that it mismanaged auto loans, mortgages and deposit accounts, in the largest penalty ever levied by the agency. … “The bank will pay $2 billion in redress to more than 16 million consumers and a $1.7 billion civil penalty.” The silver lining for Wells — BTIG director of policy research Isaac Boltansky said that underneath the penalty and the CFPB’s rhetoric is a positive development for the megabank. It’s a step toward resolving lingering regulatory issues and indicates the company is on the path to addressing the Federal Reserve cap on its growth. “Consent orders from other regulators are not directly tied to the Fed’s asset cap, but resolution on the three CFPB public consent orders, of the bank’s nine total outstanding orders, would serve as a directionally positive step for Wells Fargo,” Boltansky said in a note to clients.
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