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| | | | |  | | By Zachary Warmbrodt | Presented by Ripple | 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 5:15 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.
| | | In a divided Congress, the anti-ESG movement is bringing people together — just a little bit. The main event on Capitol Hill this week is an attempt by Republicans to leverage Democrats’ narrow Senate majority and 2024 politics to undo a Biden administration rule that enables retirement account managers to weigh environmental and social factors when it comes to investment offerings. The GOP may score a small victory by pushing the rollback through not just the Republican-controlled House, which they did Tuesday afternoon, but potentially also the Democratic Senate later today. It’s possible thanks to a Congressional Review Act procedure that lets lawmakers nullify recent rules with a simple majority and avoid the Senate filibuster. The episode — reported by our Eleanor Mueller and Allison Prang — underscores the growing prominence of the “anti-woke” crowd in American politics and policy. It’s a growing headache for Wall Street money managers and other big corporations guided by climate and social goals. President Joe Biden is of course threatening to veto the rollback, and only one Democrat — Rep. Jared Golden of Maine — supported the measure Tuesday. But it’s not so easily ignored by Democrats in red and swing states. Sen. Joe Manchin, who faces reelection in 2024 should he decide to run, was an early backer of the Republican plan to nix the rule, which itself was the Biden administration’s attempt to undo a Trump-era policy that discouraged ESG investing. Manchin says it was "irresponsible" for Biden’s Labor Department to issue the rule. The West Virginia Democrat has cast it as a political threat to Americans’ retirement savings. Sen. Angus King (I-Maine) says he probably won’t vote for the GOP proposal because the Biden rule doesn’t require companies to do anything. We’re still waiting to see what his fellow independent, Arizona Sen. Kyrsten Sinema, will do. Sen. Jon Tester, who’s running again in Montana next year, is mulling it over. He told Allison that “I’ve got my leanings” but that he was still reviewing the policy and wasn’t ready to share his position. “My challenge is this: Why’d the administration put it out?” Tester said. We’re halfway there — Keep us going with news tips. Send ‘em to zwarmbrodt@politico.com and ssutton@politico.com.
| | | | A message from Ripple: Ripple's crypto solutions are built for business. Using proven cryptocurrency and blockchain technology honed over a decade, we help our partners send payments quickly and efficiently. Ripple also enables organizations of all sizes to drive broader business innovation with cryptocurrency. And we work with central banks around the world to create central bank digital currencies (CBDCs). Learn more about Ripple's business impact here. | | | | | | The Senate will vote on rolling back the Biden ESG investing rule at 4 p.m. … Senate Budget holds a hearing on the economic risks to coastal communities from climate change at 10 a.m. … Treasury Undersecretary for Domestic Finance Nellie Liang speaks at a virtual Atlantic Council event on the future of money at 12 p.m. … Sen. Michael Bennet speaks at a Brookings event on reducing child poverty at 1 p.m. … Schumer needles anti-ESG Republicans — From the Senate Majority Leader’s new WSJ op-ed: “Republicans talk about their love of the free market, small government and letting the private sector do its work. But their obsession with eliminating ESG would do the opposite, forcing their own views down the throats of every company and investor.” Republicans want Yellen’s X-date — House Financial Services Chair Patrick McHenry is asking Treasury Secretary Janet Yellen to provide the department’s latest projection of the date the U.S. will run out of cash to pay all its bills without a debt limit increase. In addition, McHenry wants a committee briefing by March 6 that would also cover debt limit contingency planning. McHenry’s first big bill appears stalled — One of the Financial Services chair’s big legislative priorities – a revamp of data privacy rules in banking – appears to be going nowhere after Democrats on his committee refused to offer any support for the plan, Eleanor reports. Democrats balked at McHenry’s proposal in large part because it would preempt state laws to set a federal standard. Behind the scenes, McHenry also struggled to corral Republicans on changes to how financial privacy rules are enforced. China bills sail through committee — McHenry’s data privacy proposal might be DOA, but he succeeded Tuesday in pushing through several bipartisan bills aimed at countering China’s economic power. The bills stop short of major interventions into the U.S.-China economic relationship, like restrictions on investment. Instead, they would require the government to scrutinize financial institutions that serve senior Chinese officials, study risks in China’s financial sector and encourage Taiwan’s membership in the IMF, just to name a few examples. Separately Tuesday, the House select committee on China held its first hearing. “This is an existential struggle over what life will look like in the 21st century," Chair Mike Gallagher said.
| | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | | | | Meet Biden’s pick for Labor secretary — Biden on Tuesday nominated Julie Su to lead the Labor Department and replace Marty Walsh, who is stepping down to head the professional hockey players’ union. Su has been serving as DOL’s deputy secretary and was previously California’s labor secretary. Her Senate path forward could prove tricky. She was confirmed as DOL’s No. 2 official without Republican support in 2021. Citi CEO tapped for Biden export council — The heads of Citigroup, United Airlines, CVS and FedEx are among the executives Biden has appointed to a White House advisory committee on international trade.
| | | | A message from Ripple:   | | | | | | Another FTX leader faces criminal charges — Former FTX executive Nishad Singh pleaded guilty to criminal charges stemming from the alleged years-long fraud at the cryptocurrency exchange. He agreed to work with prosecutors in their case against former FTX CEO Sam Bankman-Fried. Singh was FTX’s director of engineering and a key member of Bankman-Fried’s inner circle. Hill, Lummis to talk fintech — The Milken Institute’s digital assets symposium will feature remarks Thursday from House digital asset subcommittee chair French Hill, Sens. Cynthia Lummis and Kirsten Gillibrand in a joint appearance, and Ripple CEO Brad Garlinghouse. You can register here.
| | | Mark your calendar: CFTC meeting to cover DeFi and AI — Declan Harty reports that the inaugural meeting of the CFTC’s Technology Advisory Committee on March 22 will focus on cybersecurity, decentralized finance and artificial intelligence. The committee is sponsored by CFTC Commissioner Christy Goldsmith Romero.
| | | | DOWNLOAD THE POLITICO MOBILE APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. The sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don’t miss out on the app you can rely on for the news you need, reimagined. DOWNLOAD FOR iOS– DOWNLOAD FOR ANDROID. | | | | | | | | Goldman Sachs may shrink consumer business — WSJ: “Speaking at the bank’s second-ever investor day, [CEO David] Solomon said Goldman was ‘considering strategic alternatives’ for its consumer platforms business. That unit includes the specialty lender GreenSky and credit-card partnerships with Apple Inc. and General Motors Co." JPMorgan shields Dimon in Epstein case — FT: “JPMorgan Chase is resisting attempts by lawyers to question Jamie Dimon under oath in litigation over the US bank’s decision to retain Jeffrey Epstein as a client for 15 years, although it has agreed for one of its longtime chief executive’s key lieutenants to be deposed.” Electronics defy inflation trend — WaPo: “Prices for smartphones, computers, TVs and some other electronics have been getting cheaper while most other things Americans buy are getting more expensive, government statistics show.”
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