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 the right’s culture war with big business, the Republicans leading Wall Street’s go-to House committee are picking their spots. The House Financial Services Committee on Wednesday will kick off a month of six hearings — culminating with votes on a number of bills — ostensibly aimed at deterring companies from prioritizing environmental and social goals in their operations. Republicans are branding it “ESG month.” It’s a looming agenda that’s had financial firms and lobbyists on edge the last few weeks. Republican politicians — like Florida governor and GOP presidential contender Ron DeSantis — are increasingly adopting an antagonistic tack toward corporations when it comes to pledges they make on climate and diversity. The largest asset managers and banks have faced a barrage of legislative attacks from state Republican officials over financing for energy and guns. But the Financial Services Committee — where a number of senior GOP lawmakers would rather tell government regulators, instead of executives, what to do — doesn’t appear to be following in DeSantis’s footsteps. Instead, in a plan that mostly sounds like something the U.S. Chamber of Commerce may be able to embrace, the committee will target the process in which advocates pressure public companies to adopt ESG goals using the shareholder voting process. The committee is prioritizing oversight of regulators and two proxy advisory firms that most voters have probably never heard of, rather than showcasing the influence of BlackRock, Vanguard and State Street – giant asset managers that have faced intense scrutiny for their ESG practices from other Republicans, including House Judiciary Chair Jim Jordan. Big banks also largely appear to be getting a pass, with the exception of a messaging bill designed to deter lenders from cutting off firearms businesses, crypto firms and energy companies. It’s not a huge surprise if you’ve followed the committee’s leadership. Financial Services Chair Patrick McHenry isn’t the TARP-tanking bomb-thrower he used to be, and he hasn’t shown much interest in using his committee gavel to go after Wall Street’s handling of social issues. Financial executives — even left-leaning ones — see him as a steady hand in a dysfunctional House. Perhaps even more relevant to this month’s hearings, he’s told MM that climate change is real and talked about the need to address the ensuing financial risks. He even caught flack from the likes of Tucker Carlson for keeping diversity and inclusion issues under the jurisdiction of his subcommittees. “My members are intent on sending a message that you can’t kowtow to a far-left agenda and still have Republicans fighting the good fight on behalf of free markets and a marketplace that would benefit these companies,” McHenry told us as he prepared to pursue the chairmanship late last year. “This is a complicated factor for sure. I have a variety of members that are deeply engaged in the subject matter, and you’ll hear a lot more from them, that’s for sure.” Read more — including interviews with committee members and reaction from industry — in a new piece by your MM host and Eleanor Mueller. Happy Monday – They’re baaack (lawmakers, that is). What does Congress have in store for us over the next few weeks? Send tips: Zach Warmbrodt, Sam Sutton.
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