News: Wall Street's big wish: Please move on — Still Trump's GOP

Thursday, January 14, 2021

Wall Street's big wish: Please move on — Still Trump's GOP — Biden worried about agenda impact

Jan 14, 2021

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Quick Fix

Wall Street's wish: For the love of God move on — MM spent impeachment day on the phone with senior executives across Wall Street asking about President Donald Trump's historic second impeachment and the fight over when and if the Senate should convict him. The overwhelming response: Do whatever. Just finish it. And move on.

Most bank CEOs (and the Business Roundtable and Chamber of Commerce and other Main Street business groups) have put out statements condemning the insurrection attempt on the Capitol and Trump's actions. Many big companies have halted campaign contributions, some just to Republicans associated with the coup attempt and some to everyone.

But that is as far as they are willing to go. It's up to Congress now, many said, and there is nothing to be gained for top executives or leading D.C. lobby groups by weighing in any further on the specifics of how Congress deals with Trump. But there is a massive desire to flip the page, start the Joe Biden administration and focus on vaccine distribution and further stimulus efforts.

One CEO of a giant bank told MM: "The [Business Roundtable] statement really reflected my sentiments. I mean it's not our job to decide if the president should be impeached and convicted. As CEOs and leaders this is how you get in trouble. …. But the thing that really bothers me is the erosion in civility in everything we are doing. We have so much serious stuff to do and we absolutely have to get on with it right now.

"We need to get vaccines distributed. We need to turn the services economy back on. This is an enormous distraction. I understand all the emotions around it and how strongly people feel about it. And I don't discount any of it. But I think Joe Biden's folks would agree with me on this, we have to get serious about moving forward right now."

This CEO said he did not think the entire saga would lead to major changes in the way Wall Street or corporate America engages in the political process other than an attempt to "reward civility" and steer away from contributions to candidates associated with strident positions.

"If history is a guide, Republicans will take the House in 2022. It's not like we can disengage. But we'll have to be more selective. Donald Trump eroded civility on steroids, even if it was already happening. I don't excuse any of his crazy behavior.

"Basically we have to start holding our elected officials responsible for being civil and patriotic and putting the country first and working collaboratively. And hopefully Republicans will figure out how to move on from Trumpism"

Another C-suite executive at a large Wall Street bank said people in his firm and across corporate America "just want the screaming to stop. They want to get back to normal business. They want the insanity to stop. That's really the consensus. We are just a few days away. Let's just get there. I don't think anyone is that interested in a Senate trial after Biden takes office. They want vaccines and stimulus and to get back to normal."

Another top Wall Street lobbyist based in DC : "There's no question people want Trump gone. But the politics of it are just an eight-sided chess game in terms of impeachment and removal that we have no business being involved in.

"I honestly think people are looking at it from an American and a human standpoint and looking at what's happening and what's puling the country apart and they hate it. And no one questions the guy should be gone or that his incitement to violence was terrible. But I'm not sure how or why business would get in the middle of this right now."

This person said business groups were not that worried about a post-inauguration trial blocking stimulus as much as it could distract from vaccine distribution efforts. "We haven't had a functional government for basically two years and certainly the last six months. We need to have one right now. We are just counting the days."

GOOD THURSDAY MORNING — 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 Independent Community Bankers of America:

Community bankers welcome the 117th Congress: The new Congress is closely divided at a time of historic challenge and opportunity, but it need not be gridlocked. Accounting for more than 3.5 million Paycheck Protection Program loans, community banks have been financial first responders amid the coronavirus pandemic. ICBA offers a bipartisan legislative agenda with common-sense reforms to continue moving our nation forward. Learn more

Driving the Day

KOCHS TO LEAN ON REPUBLICANS — Our Maggie Severns: "The powerful Koch political network, funders of the Tea Party, will 'weigh heavy' the actions of members of Congress in the days leading up to and after last week's siege of the Capitol when considering future donations, in a sign that the GOP's megadonor class is uncomfortable with the party's recent actions.

"In a statement to POLITICO, the Koch network said it will take last week's events seriously when deciding where to put its millions of dollars in spending next election cycle. … The Koch move comes after numerous corporate PACs began suspending their donations to Republicans who challenged … Biden's victory last week. Many of those businesses were acting in response to pressure from clients and customers."

BUT IT'S STILL TRUMP'S GOP — Our Ally Mutnick and David Siders: "The 10 House Republicans who ultimately voted to impeach … Trump represents a tiny fraction of the GOP conference — fewer than 5 percent. It's the clearest signal that — for now — it's still Trump's party, even after losing the White House and taking the Republican Senate majority down with him.

"The proceedings on Wednesday reaffirmed that Trumpism will outlive the president's time in the White House. Of the 211 Republicans in the House, 82 of them took office during the president's first term — meaning they have witnessed first hand his animating hold on the base. No freshmen members from deep red seats broke ranks"

BIDEN WARNS ON LACK OF FOCUS — Our Matthew Choi: "Biden … urged senators not to neglect Cabinet confirmations and other legislative priorities as they prepare to consider the House's article of impeachment in the trial of … Trump.

"In a statement released hours after House Democrats and 10 House Republicans voted to impeach Trump on the charge of inciting an insurrection, Biden highlighted the numerous Cabinet appointments and public health priorities of his coming first days in office.

"With the Senate scheduled to come back in session just before Biden gets sworn in, the odds of a trial going into the Biden presidency is all but certain. Biden pushed on Wednesday for the Senate to handle Covid vaccine distribution and confirm his nominations for the secretaries of Homeland Security, State, Defense and Treasury, as well as the director of National Intelligence."

Fly Around

WALL STREET DRIFTS HIGHER — AP's Stan Choe, Damian J. Troise and Alex Veiga: "Stocks closed mixed on Wall Street after major indexes spent the day drifting up and down, not far off the record highs they reached last week. The S&P 500 edged 0.2 percent higher thanks in large part to gains from several Big Tech companies including Apple and Amazon, even though most stocks in the index fell.

"Small-company stocks edged lower after posting big gains in the first week of the year. Treasury yields stalled following a rapid rise over the past few weeks. The benchmark 10-year yield dipped as concerns calmed that the Federal Reserve may curtail its purchases of Treasurys."

FED'S BEIGE BOOK SHOWS MODEST RECOVERY — Bloomberg's Catarina Saraiva: "U.S. economic activity increased modestly at the end of 2020 while hiring slowed amid resurgent infections and new restrictions, even as vaccinations got underway, the Federal Reserve said.

"'Some districts noted declines in retail sales and demand for leisure and hospitality services, largely owing to the recent surge in Covid-19 cases and stricter containment measures,' according to the Beige Book based on information collected by the Fed's 12 regional banks through Jan. 4."

And the economy is slowing in some areas — The Fed report released Wednesday said that the bulk of the Fed's 12 regions reported modest gains in economic activity in recent weeks. But three districts — New York, Philadelphia and Cleveland — said that activity had weakened. Two districts — St. Louis and Kansas City — said activity was generally unchanged since the last Fed meeting in mid-December."

HAPPENING TODAY - THE COVID-19 VACCINE ROLLOUT: What are the logistical challenges facing the coronavirus immunization campaign? Who is overseeing the process and working to overcome obstacles to ensure that vulnerable groups have access to the vaccine? Join POLITICO for a virtual discussion on the outgoing Trump administration's plan to prioritize lower-income, rural, and communities of color for vaccine distribution and what the Biden administration can do to streamline plans and fill in any gaps. REGISTER HERE.

2021 LOCKDOWNS THEATEN FIRST QUARTER EARNINGS — Reuters' Thyagaraji Adinarayan and Caroline Valetkevitch: "A major chunk of the global recovery in companies' earnings expected in the first quarter is at risk of being pushed back further as lockdowns and mobility restrictions in several countries cloud hopes of a swifter economic rebound, investment banks said.

"China announced lockdowns in four cities and European countries unveiled tighter and longer coronavirus restrictions on Wednesday, denting back-to-normal hopes and sparking worries about further economic damage in 2021."

BUDGET DEFICIT WIDENED 61 PERCENT IN LAST QUARTER OF 2020 — Bloomberg's Katia Dmitrieva: "The U.S. federal budget deficit continued to balloon at the end of last year on spending to cushion the pandemic's economic fallout, with the incoming Biden administration preparing to deploy more government funds.

"The gap was $572.9 billion in the October-December period, a record for the fiscal year's first quarter and up 61 percent from a year earlier, according to a Treasury Department report Wednesday. December's $143.6 billion deficit, also a record for that month, compared with $13.3 billion during the same month in 2019."

AMERICANS WON'T BE BANNED FROM INVESTING IN ALIBABA, TENCENT, BAIDU — WSJ's Jing Yang, Dawn Lim and Gordon Lubold: "The U.S. government is expected to let Americans continue to invest in Chinese technology giants Alibaba Group Holding Ltd., Tencent Holdings Ltd. And Baidu Inc., after weighing the firms' alleged ties to China's military against the potential economic impact of banning them.

"New York-listed Alibaba and Baidu, and Hong Kong-listed Tencent, were among a dozen companies being examined for inclusion in a Defense Department list of firms deemed to support China's military, intelligence and security services, according to people familiar with the matter. U.S. investors have until November to divest their holdings of any firm on the list."

KEEP UP WITH THE FIRST 100 DAYS OF THE BIDEN ADMINISTRATION WITH TRANSITION PLAYBOOK: It was a dark week in American history, and a new administration will have to pick up the pieces. Transition Playbook brings you inside the last days of this crucial transfer of power, tracking the latest from President-elect Biden and his growing administration. Written for political insiders, this scoop-filled newsletter breaks big news and analyzes the appointments, people, and the emerging power centers of the new administration. Track the transition and the first 100 days of the incoming Biden administration. Subscribe today.

For Your Radar

TALLYING UP BANK ACTIONS — Via Better Markets with new report on "all 395 major legal actions against the 6 biggest banks from 1998 through the end of 2020, for which they paid almost $200 billion in fines and settlements."

SPOTTED — Reince Priebus leaving the Treasury building on Wednesday via East Exec Ave.

TRANSITIONS — Robinhood has hired two top executives from FINRA. Josh Drobnyk, who ran corporate communications at the securities regulator, started this week as VP of Corporate Relations and Communications. Anthony Cavallaro, most recently SVP in the Office of Fraud Detection and Market Intelligence, joins the company in February as Head of Regulatory Services and Fraud Oversight.

A message from the Independent Community Bankers of America:

Community bankers and ICBA offer a bipartisan agenda: Community bankers welcome the 117th Congress at a time of historic challenge and opportunity. While the new Congress is closely divided, it need not be gridlocked. Employing more than 700,000 Americans across nearly 50,000 locations with a presence in every congressional district, community banks have a track record of working with both parties to craft pragmatic solutions grounded in consensus. ICBA's bipartisan legislative agenda for the 117^th Congress offers common-sense policy reforms that will continue our economic recovery in urban, suburban, and rural communities nationwide. Learn more