| | | | |  | | By Ryan Lizza, Rachael Bade and Eugene Daniels | Presented by TikTok | With help from Eli Okun and Garrett Ross
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All eyes will be on Treasury Secretary Janet Yellen today as she testifies before the Senate Finance Committee at 10 a.m. | Francis Chung/POLITICO | | | | |  | DRIVING THE DAY | | WSJ SPANKS RON — “Ron DeSantis’s First Big Mistake: The Florida Governor toys with Trumpian retreat on Ukraine,” by the WSJ Editorial Board: “[W]hat if Russia swallows all or most of Ukraine? [VLADIMIR] PUTIN will then set up shop closer to the Polish border and be even stronger as a malign force in Europe. The U.S. will be drawn deeper into the continent’s problems, not free to focus on the threat posed by China, which in any event will conclude that the U.S. is weaker. Is that the world President [RON] DeSANTIS wants to inherit on Jan. 20, 2025?” GIRLFRIEND, YOU ARE SO OFF — Lauren Egan has a blockbuster story out this morning on MARIANNE WILLIAMSON’s treatment of her staff, which finds that on her 2020 campaign the Democrat demonstrated “unpredictable, explosive episodes of anger,” quite at odds with her spiritually sanguine public persona. Staffers told Egan that “Williamson could be cruel and demeaning … far beyond the typical stress of a grueling presidential cycle.” “It would be foaming, spitting, uncontrollable rage,” one person says, and could be sparked by something as simple as a hotel room having a shower instead of a bathtub. She threw her phone, hit a car so hard she had to go to urgent care and erupted so loudly that hotel staff checked in multiple times. Former staffers also recall her mocking people’s weight. In response, Williamson calls the allegations “slanderous,” “categorically untrue” and an attempt “to deflect attention from the important issues facing the American people.” ALL OVER BUT THE YELLEN (TESTIMONY) — All eyes will be on Treasury Secretary JANET YELLEN today as she testifies before the Senate Finance Committee at 10 a.m. Yellen’s appearance was originally scheduled to discuss the Biden budget. But after the weekend rescue of Silicon Valley Bank, this will be senators’ first chance to cross-examine Yellen about the controversial actions she took on Sunday in concert with her colleagues at the Fed and FDIC. A Treasury official offered this generic preview of the secretary’s testimony: “Secretary Yellen will update Congress on the decisive and forceful actions the Administration has taken to strengthen public confidence in our banking system. She will say that our banking system remains sound and that Americans can feel confident that their deposits will be there when they need them. “Secretary Yellen will also discuss the president’s fiscal year 2024 budget. She’ll highlight the resilience of the American economy thanks to the president’s economic plan, as well as the recent moderation we’ve seen in inflation, while acknowledging the work still left to do. And she will discuss how the president’s economic plan builds on that progress by making investments for long term economic growth, while asking corporations and the wealthiest Americans to pay their fair share.” Not everything will be about SVB.
- Sen. BOB CASEY (D-Pa.) is preparing “to ask her about when Treasury will finalize the rules around tax breaks for companies who invest in ‘energy communities’ (i.e. communities that heavily relied on coal) from the Inflation Reduction Act,” per a Casey aide. “It was one of his top priorities in IRA and something he wants to see implemented quickly so companies can start making plans to invest in coal communities in PA with new manufacturing jobs.”
- Sen. BILL CASSIDY (R-La.), per an aide, will likely be fired up about Social Security, pressing Yellen for details on what Biden plans to do to shore up the system, which the CBO projects will be insolvent in a decade.
But the Biden team’s response to the bank failures will dominate the meeting. And she is likely to feel the populist outrage bubbling up in Congress from both Democrats and Republicans.
- Sen. JIM LANKFORD (R-Okla.), who serves on the panel, offered a taste of what Yellen is in for: “Banks in Oklahoma in rural towns are about to pay a special fee to be able to bail out millionaires in San Francisco. Now, what Oklahoma banks and bankers had to do with that bank failure in San Francisco, I have no idea.” (FWIW: SVB’s headquarters are actually in Santa Clara.)
- Sen. ELIZABETH WARREN (D-Mass.), who is pushing a bill to tighten bank regulations, will also be worth watching. "It's time to put those regulations back in place," she said last night on Boston TV. "It's time to hold the Fed accountable, do a full investigation of what they've done. And it's time to send a very strong message to bank CEOs: you're not going to be able to load up on risk in order to juice your profits."
Some questions for Yellen on the minds of Democrats:
- What role did the 2018 financial deregulation bill play in SVB’s demise? (NB: The committee’s roster reflects the party’s split on the bill, with nine Democrats who opposed it, like Warren and Chair RON WYDEN (Ore.), and five who supported it, like Sens. DEBBIE STABENOW (Mich.) and MARK WARNER (Va.).)
- Does the administration support any of the new bank regulation bills floating around the Hill?
- What is the administration doing to claw back bonuses from SVB’s former executives?
- Does the administration support universal deposit insurance?
- How many other banks have unhealthy balance sheets similar to SVB’s?
On the GOP side, the Finance Committee is notable for its relative lack of extreme partisan bomb-throwers. But one exception is Sen. RON JOHNSON (R-Wis.), who is preparing for fireworks. “It’s worth tuning in!” said a Johnson aide. Some questions for Yellen on the minds of Republicans:
- How did the Federal Reserve and other bank examiners fail to anticipate SVB’s balance sheet problems?
- What role did SVB’s focus on social issues play in its demise?
- Was the rescue of SVB depositors a special favor to its Silicon Valley customers who also happen to be more aligned with Democrats?
- Won’t the rescue just encourage more risky behavior from banks?
- What should SVB’s failure mean for the Fed’s approach to interest rates?
Yellen will also face questions about Credit Suisse, which on Wednesday reported “material weaknesses” and sought up to $54 billion in assistance from Switzerland’s central bank, a move that sent tremors through the markets. More on that from WaPo and NYT “I imagine the Credit Suisse news was the last news cycle thing they were hoping to be a part of,” said a Senate aide. More…
Good Thursday morning. Thanks for reading Playbook. What would you ask Yellen today? Drop us a line: Rachael Bade, Eugene Daniels, Ryan Lizza.
| | | | A message from TikTok: TikTok is building systems tailor-made to address concerns around data security. What’s more, these systems will be managed by a U.S.-based team specifically tasked with managing all access to U.S. user data and securing the TikTok platform. It’s part of TikTok’s commitment to securing personal data while still giving the global TikTok experience people know and love. Learn more at http://tiktok.com/safety. | | | BIDEN ADMIN POKES DeSANTIS — “As U.S. education secretary, I want us to enrich public schools, not ban books and topics,” MIGUEL CARDONA writes in this morning’s Tampa Bay Times: “Parents don’t want politicians dictating what their children can learn, think and believe. That’s not how public education is supposed to work in a free country.” NUMBERS VS. NARRATIVE — “Sharp drop in illegal border crossings continues in February,” by AP’s Rebecca Santana
| | | | A message from TikTok:   data security and privacy. your concern. our commitment. Learn more at http://tiktok.com/safety. | | | | | BIDEN’S THURSDAY — The president will receive the President’s Daily Brief at 10 a.m.
Press secretary KARINE JEAN-PIERRE will brief at 2 p.m.
VP KAMALA HARRIS’ THURSDAY (all times Eastern):
9:20 a.m.: The VP and second gentleman DOUG EMHOFF will depart for Des Moines, Iowa, arriving at 12:05 p.m.
1:25 p.m.: Harris will lead a roundtable about protecting reproductive health care at Grand View University.
4:40 p.m.: Harris and Emhoff will leave Des Moines, getting back to Joint Base Andrews at 7 p.m.
THE SENATE will meet at 10 a.m. to take up JESSICA CLARKE’s judicial nomination, with votes throughout the day. Around late morning, the Senate will vote on cloture for the motion to proceed to the Iraq authorizations for use of military force repeals. Agriculture Secretary TOM VILSACK will testify before the Agriculture Committee at 9:30 a.m. Yellen will testify before the Finance Committee at 10 a.m.
THE HOUSE is out. | | | | | | We’re spilling the tea (and drinking tons of it in our newsroom) in U.K. politics with our latest newsletter, London Playbook PM. Get to know all the movers and shakers in Westminster and never miss a beat of British politics with a free subscription. Don’t miss out, we’ve got some exciting moves coming. Sign up today. | | | | | PHOTO OF THE DAY
|  U.S. President Joe Biden speaks at UNLV on March 15, 2023 in Las Vegas, Nevada. | Ethan Miller/Getty Images | | | PLAYBOOK READS | | 2024 WATCH THE DeSANTIS TIGHTROPE — David Siders, Sally Goldenberg and Gary Fineout catalog an interesting conundrum for DeSantis this morning: As he leans harder into ultra-conservative social policies on gender and race, his stock is rising in the primary — but his electability argument may be damaged as a result. A big part of DeSantis’ pitch is that he offers Trumpism without the baggage. But he’s amassing some notable policy baggage of his own that could make it prove difficult to woo moderates — as with his support for a proposed six-week abortion ban. Big picture: “It’s a significant risk in a primary in which Republican voters … are desperate to nominate a candidate who can win.” Speaking of culture wars: “DeSantis to unveil alliance with 18 states to combat Biden’s ‘woke’ ESG agenda,” by the Washington Examiner’s Ryan King Vibe check: “Much of the 2024 GOP field focuses on dark, apocalyptic themes,” by WaPo’s Ashley Parker: “[M]uch of the rhetoric from the declared and potential Republican candidates so far is remarkable for its dystopian tone. In many high-profile moments, these Republicans portray the nation as locked in an existential battle, where the stark combat lines denote not just policy disagreements but warring camps of saviors versus villains, and where political opponents are regularly demonized. They warn that Biden and a ‘radical,’ ‘woke mob’ of liberals are determined to ‘destroy’ and ‘ruin’ the nation.” SURVEY SAYS — A new Quinnipiac national poll finds DONALD TRUMP extending his lead over DeSantis in a multi-candidate Republican primary, 46% to 32%. (One on one, it’s Trump 51%, DeSantis 40%.) But in a hypothetical general election, Biden leads both men among all registered voters — beating Trump, 49% to 45%, and DeSantis, 47% to 46%. IN THE MIX — Former New Jersey Gov. CHRIS CHRISTIE told the Washington Examiner’s Ryan King that he’ll make a call on another presidential bid in the next 45 to 60 days. JUST POSTED — “Trump’s VP? Some in GOP already jockeying for consideration,” by AP’s Jill Colvin THE WHITE HOUSE TIKTOK ON THE CLOCK — In a significant change, the Biden administration is now telling Chinese parent company ByteDance that a national ban is possible if the owners don’t sell their stakes in TikTok, WSJ’s John McKinnon scooped. It could still take months to straighten out. “If protecting national security is the objective, divestment doesn’t solve the problem: a change in ownership would not impose any new restrictions on data flows or access,” TikTok fired back in a statement. POTUS ON THE ROAD — “Biden, in preview of budget fight, hits GOP on health care,” by WaPo’s Matt Viser in Las Vegas WHAT THE WHITE HOUSE WILL TOUT — “First Drugs Facing Medicare Price Penalty Are Named,” by WSJ’s Stephanie Armour and Jared Hopkins MORE POLITICS THE BREAUX CODE — “Former Sen. Breaux leads new push against Biden tax plan,” by Roll Call’s Laura Weiss: “A group that was set up to fight a prior Biden administration-backed tax increase on generational wealth transfers is launching a new campaign raising concerns about Democrats’ proposals to tax the richest households based on the value of unsold assets like stock, homes and art. The organization … is running ads in 10 states and Washington, D.C.” CONGRESS WHISKEY TANGO FOXTROT — Serious questions have already been raised about freshman Rep. ANDY OGLES (R-Tenn.) misrepresenting or inflating his past accomplishments, but this is a new one: WTVF-TV’s Phil Williams reports that Ogles won’t say what happened to $25,000 that was supposed to create a children’s burial garden. The money, raised through a GoFundMe in 2014, was earmarked for a garden inspired by the loss of Ogles’ own stillborn baby. “Help us help other families,” his page implored. “No family should have to bury their child; no child should be alone.” The project was supposed to include "a life-size statue of Jesus watching over the children," and "benches for families to sit while surrounded by flowers" — but the site doesn’t appear to have been created, and donors don’t know where their money went. Ogles refused to answer any of WTVF’s questions, but released a statement after the segment aired, calling the reporting part of a “smear campaign” and claiming that after the project fell short of its fundraising goal, its “purpose evolved … to direct financial support for families covering the cost of funeral expenses.” L.A. MAN TAKES LONG ROUTE TO DESTINATION — “Eric Garcetti finally got the ambassadorship he wanted. Here’s how he did it,” by the L.A. Times’ Jennifer Haberkorn: “Ultimately, Biden’s unflinching loyalty to [ERIC] GARCETTI probably saved the former mayor’s confirmation. By refusing to abandon his ally … and by allowing an important ambassadorship to sit vacant for a record amount of time, Biden created an unlikely standoff with Senate Democrats.” More from Chris Cadelago and Marianne LeVine TOWN-GOWN LATEST — “House Oversight Committee Invites DC Officials To Testify On DC Operations, Crime,” by The Daily Caller’s Henry Rodgers
| | | | A message from TikTok:   data security and privacy. your concern. our commitment. Learn more at http://tiktok.com/safety. | | | TRUMP CARDS THE INVESTIGATIONS — STORMY DANIELS met with Manhattan prosecutors yesterday as they pursue an investigation into a hush money payment to the porn star, who allegedly had sex with Trump, NYT’s Jonah Bromwich, William Rashbaum, Nate Schweber and Kate Christobek report. It’s just the latest sign of the serious legal trouble Trump may be in. But it didn’t appear that she’d testified before DA ALVIN BRAGG’s federal grand jury, as MICHAEL COHEN did again yesterday. “Stormy responded to questions and has agreed to make herself available as a witness, or for further inquiry if needed,” her lawyer CLARK BREWSTER tweeted. Daniels herself called it an “continuing fight for truth and justice.” JUDICIARY SQUARE BRACING FOR A BIG ABORTION RULING — Texas federal judge MATTHEW KACSMARYK heard more than four hours of arguments yesterday in the potentially seismic case that could curb access to abortion pills nationwide. Kacsmaryk said his ruling would come “as soon as possible,” without specifying a timetable. At issue is whether he’ll undo the FDA’s 2000 approval of the abortion drug mifepristone. And in Amarillo, different outlets had different interpretations of Kacsmaryk’s leanings: AP suggests that Kacsmaryk “saved some of his most pointed questions for attorneys representing the alliance” trying to block the drug. But WaPo reports that he “seemed open to the argument that mifepristone had not been properly vetted.” JAN. 6 AND ITS AFTERMATH HOW CLOSE WE CAME — “In the mob’s eyeline: A senior Republican’s close brush revealed in new Jan. 6 footage,” by Kyle Cheney and Jordain Carney: “‘I wasn’t aware of any of it,’ [Sen. CHUCK] GRASSLEY said of his apparent near-encounter. ‘They just said: “We’ve got to get you out of here.”’” THE NEXT WAVE — “DOJ Told Court to Expect a Deluge of New Jan. 6 Prosecutions,” by Bloomberg’s Zoe Tillman WAR IN UKRAINE FOREIGN POLICY FAULT LINE — “Wanted: A GOP presidential contender that supports Ukraine,” by Burgess Everett and Anthony Adragna: “As former President Donald Trump and Florida Gov. Ron DeSantis air their disinterest in more U.S. aid to Ukraine, a number of Senate Republicans are open about wanting a GOP standard-bearer who takes a different approach.” — “A Republican ‘civil war’ on Ukraine erupts as Reagan’s example fades,” by WaPo’s Liz Goodwin, Isaac Arnsdorf and Marianna Sotomayor THE NEXT PHASE — “‘Ukraine doesn’t have any time to waste’: U.S. races to prepare Kyiv for spring offensive,” by Lara Seligman: “As spring approaches, U.S. officials are increasingly concerned about Ukraine’s dwindling supply of ammunition, air defenses and experienced soldiers.” AMERICA AND THE WORLD INTERCEPTION INCEPTION — “Russian leadership approved aggressive actions of jets that damaged U.S. drone, U.S. officials say,” by NBC’s Courtney Kube and Carol Lee: “Three U.S. officials familiar with the intelligence said the highest levels of the Kremlin approved the aggressive actions.” — “Russia Makes a Habit of Harassing U.S. Planes, Pentagon Says,” by WSJ’s Nancy Youssef, Evan Gershkovich and Thomas Grove BLINKEN ABROAD — “Blinken Calls for ‘Accountability’ on War Crimes in Ethiopia,” by NYT’s Michael Crowley and Declan Walsh in Addis Ababa MEDIAWATCH THIS IS CNN — “On Tuesday morning, CNN chairman and C.E.O. CHRIS LICHT arrived at his network’s 9 a.m. editorial meeting with a surprise guest: his boss, DAVID ZASLAV,” Puck’s Dylan Byers reports. “Nearly one year in, it’s clear that Zaslav still believes in his vision for CNN as a nonpartisan, broadcast-style news digest, and still believes that Licht is his Captain Ahab, despite what has been an undeniably challenging run thus far.” GUESS WHO’S BACK — “OMG: Ousted Project Veritas founder James O’Keefe launches new media venture,” by The Washington Times’ Victor Morton
| | | | 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. | | | | | | | PLAYBOOKERS | | Barack Obama announced his March Madness picks. His Final Four: Houston, UCLA, Baylor and (as national champion) Duke. Mitt Romney hadn’t filled out his March Madness bracket as of yesterday afternoon. Joe “Exotic” Maldonado-Passage of “Tiger King” fame announced from prison that he’s running for president. Roy McGrath’s home in Naples, Fla., was raided by the FBI in “the latest event in the dayslong search for former [Maryland] Gov. Larry Hogan’s ex-chief-of-staff,” per The Baltimore Sun. Nancy Pelosi will get an honorary doctorate from Ulster University ahead of the 25th anniversary of Northern Ireland’s Good Friday Agreement. PLAYBOOK METRO SECTION — “USC opens a campus in Washington, D.C., to expand presence in nation’s capital,” L.A. Times PLAYBOOK FASHION SECTION — “New Moon Suit for NASA’s Artemis Astronauts Unveiled,” NYT PLAYBOOK ARTS SECTION — “Norman Rockwell Art Stolen and Hidden in White House for Decades, Lawsuit Claims,” WSJ … Related West Wing Playbook from last summer AND THE AWARD GOES TO — Engage announced its 2023 Engage Woman Award recipients, who will be honored at a reception later this month: SBA Administrator Isabella Casillas Guzman, Sen. Joni Ernst (R-Iowa), Tammy Sun, Brooke and Breanna Bennett, and Emma Zafran. SPOTTED: John Boehner smoking outside the Capital Grille. OUT AND ABOUT — Semafor’s Justin Smith hosted a reception at his Kalorama home last night for Liz Hoffman’s new book, “Crash Landing” ($30), including a curated menu from chef Chris Morgan. SPOTTED: Maya MacGuineas, Jason Oxman, Sally Quinn, Singaporean Ambassador Ashok Mirpuri, Steve Clemons, Steve Lombardo, Sam Feist, Josh Eastright, Zainab Usman, Wes Lowery, Barbara Humpton, Margaret Carlson, Daniel Lippman, Juleanna Glover, David Chavern, Jay Solomon, Brett McGurk, Christina Sevilla, Tevi Troy, Geo Saba, Kathleen Kennedy Townsend, Slovak Ambassador Radovan Javorčík, Monaco Ambassador Maguy Maccario Doyle, Paula Dobriansky, Estonian Ambassador Kristjan Prikk, Omani Ambassador Moosa Al Tai and Ron Bonjean. — MSNBC hosted a private dinner at Maydan last night for Jen Psaki’s new show launching Sunday at noon. SPOTTED: Rashida Jones, Greg Mecher, DHS Secretary Alejandro Mayorkas and Tanya Mayorkas, Kara Swisher, Wally Adeyemo, Anita Dunn, Andrea Mitchell, Rebecca Kutler, Symone Sanders, French Ambassador Laurent Bili, Jonathan Capehart, Dana Remus, Brett Holmgren, Rebecca Blumenstein, María Teresa Kumar, Jon Finer and Alex Lupica. — Responsibility.org hosted a “Responsible Happy Hour” last night at the National Press Club, featuring standard drink pours, mocktail options, ride-share discounts and a breathalyzer to promote responsible alcohol consumption. SPOTTED: Brett Bruen, Leslie Kimball, Ben Leonard, Ted Johnson, Robert Schroeder and Darlene Superville. FIRST IN PLAYBOOK — Fox Corp. is promoting Kristopher Jones to EVP and head of government relations and Jamie Gillespie to EVP for government relations. Jones previously was SVP for government relations at FOX. MEDIA MOVE — Maureen Tkacik will be investigations editor at The American Prospect. She currently is a senior fellow at the American Economic Liberties Project, an affiliation she’ll keep. TRANSITIONS — Olivia Coleman is now press secretary for the House Select Subcommittee on the Coronavirus Pandemic. She previously was deputy press secretary for Sen. Ron Johnson (R-Wis.). … Brennan Johnson is now Senate liaison for Alabama Gov. Kay Ivey. He most recently was general counsel for Sen. Richard Shelby (R-Ala.). … Charyssa Parent is now comms director for Sen. Roger Marshall (R-Kan.). She previously was deputy comms director for the House Republican Conference. … … Matthew Dybwad is now SVP and head of political at IQM, a programmatic media buying and audience intelligence platform focused on politics. He previously was associate director at Xandr. … Lou Chiarella is now senior counsel in Crowell & Moring’s government contracts group. He previously was deputy assistant general counsel at the GAO. … Megan Shea is now scheduler for Rep. Jill Tokuda (D-Hawaii). She most recently was government relations manager at the News/Media Alliance. WELCOME TO THE WORLD — Elena Schneider, a national political reporter at POLITICO, and Eli Stokols, a White House reporter and West Wing Playbook co-author at POLITICO, welcomed Ryne Herriot on Friday. He is named in honor of his great-grandmothers, came in at 21.5 inches, and joins big brother Charlie. Pic … Another pic HAPPY BIRTHDAY: Rep. Julia Letlow (R-La.) … NATO Secretary-General Jens Stoltenberg … AP’s Julie Pace … MSNBC’s Amy Shuster … Art Collins … Jeff Nussbaum … former Reps. Joe Crowley (D-N.Y.), Ron Kind (D-Wis.) (6-0) and Yvette Herrell (R-N.M.) … SKDK’s Jason Rosenbaum … Andy Lewin of BGR Group … Ian McCaleb … WaPo’s Dalton Bennett and Ellen McCarthy … Scott Simon … Boeing’s Kevin Varney … Adam Blickstein … TechNet’s Carl Holshouser … Jordana Cutler … Brian Young … NYT’s Neil Vigdor and Brian Rosenthal … Gary Emerling … CTeL’s Ben Steinhafel Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us at 202-556-3307. Playbook couldn’t happen without our editor Mike DeBonis, deputy editor Zack Stanton and producers Setota Hailemariam and Bethany Irvine.
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