| | | | | |  | | 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 subscribers 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. | | | Corporate America grapples with George Floyd's death one year later — As part of our package on the one-year anniversary of George Floyd's murder, I write here about what Wall Street and the rest of corporate America have done on issues of racial injustice and economic inequality. Later this week, chief executives of the country's six largest banks will testify before the Senate Banking and House Financial Services committees. The group includes five white men, one white woman and no people of color. There is no roiling financial crisis for the titans of high finance to address this time . But there will be plenty of questions, including what the banks – and other big American companies – have done in the year since George Floyd's death at the hands of Minneapolis police to address diversity within their ranks and respond to demands that they take a more active role in advocating for social justice. Even senior executives within the banks acknowledge that while gains have been made — and many CEOs were outspoken in their praise for the verdict in the Derek Chauvin murder trial — it's not nearly enough. And there are real risks of backsliding into old habits now that the Black Lives Matter protests have faded from the news, at least for now. Brian Lamb, Global Head of Diversity and Inclusion at JPMorganChase , the country's largest bank told me: "As we reach one year after George's death, we are encouraged by the momentum we have but realize we have a really long way to go" … The bank has made a $30 billion commitment to racial equality "that is research-driven and business-led," Lamb said, including $26 billion aimed at home-ownership and affordability, especially for people of color. More broadly, corporate America, whose top ranks are still dominated by older, white males, faces the challenge of responding to their own employees and customers calling for more rapid change. The companies have to balance those demands against complaints from some conservatives about 'woke CEOs' wading into political fights like the voting rights battles in Georgia and across the nation. Go broader — From corporate America's willingness to talk about social justice (for now) to the Justice Department's focus on civil rights; from white people getting 'woke' to the ongoing fight in the neighborhood where Floyd died … From the Black women under intense scrutiny as mayors of big cities to the high rate of police violence that still exists today — POLITICO walks you through how power has (and hasn't) shifted since May 25, 2020. Don't miss the anniversary package here. And subscribe to The Recast, a twice-weekly newsletter on race, politics and policy. GOOD TUESDAY MORNING — Remembering George Floyd today and a death that absolutely never needed to happen and the many more that have and continue to happen. Let's keep trying to get better. 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: ExxonMobil is introducing an idea to help decarbonize the Houston Ship Channel. It has the potential to capture and store roughly 100 million metric tons of CO2 annually by 2040. That's equal to the CO2 sequestered by a forest larger than the size of California. This plan could help the City of Houston meet its net-zero ambitions by 2050. Learn more at EnergyFactor.com | | | | | | At 1:30 p.m., President Biden meets with the family of George Floyd on the anniversary of his death … Senate Banking at 10 a.m. holds a hearing on "The Semiannual Testimony on the Federal Reserve's Supervision and Regulation of the Financial System" with Fed Vice Chair for Supervision Randy Quarles … Senate Finance has a nominations hearing at 9:30 a.m. for Lily Lawrence Batchelder to be an assistant Treasury secretary; Benjamin Harris to be an assistant Treasury secretary; J. Nellie Liang to be Treasury undersecretary; and Jonathan Davidson to be deputy Treasury undersecretary Case Shiller Home Prices at 9:00 a.m. expected to rise 1.5 percent … Consumer confidence at 10 a.m, expected to fall to 119.8 from 121.7 … BI-PARTISAN INFRASTRUCTURE TALKS CRASH — Our Burgess Everett and Marianne LeVine: "Washington's bipartisan infrastructure talks may soon look a lot like its cicada population: squashed after staggering around haplessly. Senate Republicans negotiating with the White House sounded dour notes on Monday evening and are mulling whether to even make a counteroffer to .. Biden's proposal last week. "Democrats are increasingly calling for Biden to consider going it alone rather than see the GOP water down his agenda. An unofficial deadline for a bipartisan accord on infrastructure hits a week from now and negotiators are some $1.5 trillion apart, with severe differences in both size and scope, after more than a month of talks." HEARING PREP — From Senate Banking Chair Sherrod Brown's prepared opening remarks for today's Quarles hearing: "When I talk to Ohioans, I hear a constant refrain: people don't trust banks, especially the biggest banks. "They've been burned by predatory mortgages, high overdraft fees, and expensive second chance accounts. They've watched Wall Street reward themselves, despite scandal after scandal. They remember how Wall Street bounced back after they wrecked our economy. FIRST LOOK — ABA is out this a.m. with its' "2021 Bank Access Report that provides a comprehensive look at consumers' access to banking services across the country. "Among other takeaways, the report finds that there are more than 83,000 bank branches in the U.S.; the average American lives within commuting distance of 25 branch locations; and the average low-income census tract in the U.S. has 17 branches within a two-mile radius." SUMMERS WARNS AGAIN ON INFLATION — Larry Summers in the Wash. Post: "[T]he primary risk to the U.S. economy is overheating — and inflation. Even six months ago, it was reasonable to regard slow growth, high unemployment and deflationary pressures as the predominant risk to the economy. Today, while continuing relief efforts are essential, the focus of our macroeconomic policy needs to change. "Inflationary pressures are mounting from the boost in demand created by the $2 trillion-plus in savings that Americans have accumulated during the pandemic; from large-scale Federal Reserve debt purchases, along with Fed forecasts of essentially zero interest rates into 2024; from roughly $3 trillion in fiscal stimulus passed by Congress; and from soaring stock and real estate prices." | | | |   | | | | | | STOCKS CLIMB ON WALL STREET — AP's Damian J. Troise and Alex Veiga: "Stocks closed higher on Wall Street Monday, and the broad rally helped the S&P 500 claw back more than half of its losses over the past two weeks. "The benchmark index rose 1 percent, led by solid gains in technology and communication companies such as Microsoft, Google's parent company, Facebook and Twitter. A variety of companies that rely on direct consumer spending also made solid gains. Sectors that are viewed as safer investments, like utilities, lagged the broader market." BOOM IN CHINESE FIRMS LISTING IN U.S. COMES TO SUDDEN HALT — Bloomberg's Julia Fioretti: "At least three Chinese companies have put their plans to list in the U.S. on hold, heralding a slowdown in what's been a record start to a year for initial public offerings by mainland and Hong Kong firms. "A bike-sharing platform, a podcaster and a cloud computing firm are among popular Chinese corporates holding off plans for a U.S. float, put off by recent market declines, souring investor sentiment toward fast-growth companies and lackluster debuts by peers like Waterdrop Inc." BRAINARD OUTLINES COST BENEFITS OF CENTRAL BANK DIGITAL CURRENCY — Bloomberg's Craig Torres: "The Federal Reserve is stepping up its research on digital currencies, Governor Lael Brainard said, amid growing demand for digital payments. "Brainard said three other topics — the growing role of digital private money, plans for using digital currency for cross-border payments by foreign central banks, and possible benefits for financial inclusion — have sharpened the Fed's focus on central bank digital currency. | | | | JOIN TODAY FOR A CONVERSATION ON AMERICA'S MATERNAL HEALTH CRISIS: The maternal and infant mortality rates in the U.S. have been rising, especially for women and babies of color. One year into the pandemic, how have social determinants of health contributed to maternal and child health outcomes for Black women and other women of color? Join POLITICO for a deep-dive conversation for which we'll use Illinois as a case study to understand how social determinants of health and Covid-19 complicate efforts to eliminate maternal and infant mortality. We will also explore the various public health and policy solutions to reduce racial disparities during pregnancy and postpartum. REGISTER HERE. | | | | | | | | A CHILL FED, COOL INFLATION AND A LONG LIST OF REASONS NOT TO WORRY — Reuters' Howard Schneider: "With inflation fears buzzing in markets and political circles, Federal Reserve officials have laid out long, itemized lists for why they feel a recent jump in the price of many goods won't spiral into a larger problem. "There is some simple math involved. But mostly their arguments rely on the balancing dynamics of supply and demand, a dash of public psychology, and some faith that the same forces that have kept inflation tame since the 1990s, be it international trade or internet-driven price competition, will continue to do so after the pandemic. Most of the arguments also have a counter — and a risk — if the economy that emerges from the pandemic works differently than before." ARE VACCINATED AMERICANS POWERING THE ECONOMY? NOT YET. — WSJ's Sarah Chaney Cambon: "Vaccinated Americans are increasingly going out this spring—but not as much as their unvaccinated counterparts. Vaccinated consumers were less likely to go out to restaurants, salons and entertainment venues than those who don't plan to get the vaccine, April spending and survey data from market-research firm Cardify.ai show. BUSINESS ECONOMISTS FORESEE BEST GROWTH IN 37 YEARS — AP's Martin Crutsinger: "The nation's business economists have grown much more optimistic about the U.S. economy this year, with a majority predicting that increased vaccinations, stronger job gains and further government aid will accelerate growth to its fastest pace in nearly four decades." INVESTOR OPPOSITION TO CEO PAY AT HIGHEST LEVELS EVER — Reuters' Jessica Dinapoli: "Investors have rejected a record number of executive compensation plans in non-binding votes of U.S.-listed companies this year, objecting to pay rises and the easing of performance targets in the wake of the COVID-19 pandemic, according to an analysis by consulting firm ISS Corporate Solutions BOFA'S MERRILL LYNCH BANS COLD CALLS — WSJ's Rachel Louise Ensign: "Bank of America Corp.'s Merrill Lynch Wealth Management unit is banning trainee brokers from making cold calls, a vestige of an era when the industry pushed hot stocks on anyone who would pick up the phone" | | | | A message from ExxonMobil: ExxonMobil's idea to capture and store roughly 100 million metric tons of CO2 annually by 2040 would more than double the world's current carbon capture and storage capacity. That's equal to taking 20 million cars off the road. It has the potential to effectively decarbonize the entire industrial area around the Houston Ship Channel and help the City of Houston meet its net-zero ambitions by 2050. If successful in Houston, it could be applied to industrial areas in other parts of the country. Learn more at EnergyFactor.com | | | | | | HAINES HONORED WITH NFT — CNBC's Jason Gewirtz: "Ten years to the day since our cherished colleague Mark Haines passed away, CNBC is honoring him by auctioning an NFT of his historic market call at the depths of the Great Recession. "He called a bottom in the stock market at 9:47 a.m. ET on March 10, 2009. At a time when the markets were in complete chaos, Mark was a voice of reason. Mark famously said, 'I think we're at a bottom, I really do.' He was absolutely right" TRANSITIONS — Cerberus Capital Management 's international arm, Cerberus Global Investments, has hired Brian Hook as vice chairman. He was previously President Donald Trump's special envoy for Iran. He'll be working under Cerberus Global Investments' chairman, who happens to be a veteran of another GOP administration: former Vice President Dan Quayle. | | | | SUBSCRIBE TO WEST WING PLAYBOOK: Add West Wing Playbook to keep up with the power players, latest policy developments and intriguing whispers percolating inside the West Wing and across the highest levels of the Cabinet. For buzzy nuggets and details you won't find anywhere else, subscribe today. | | | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
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