Policy/Legislation
Amendments Slow Down Bipartisan Infrastructure Bill: The Hill reports that Senate action on a $1 trillion bipartisan infrastructure bill has slowed to a crawl as lawmakers haggled over more than 250 proposed amendments to the legislation. Roll Call also reports that Senate Majority Leader Charles E. Schumer (D-NY) wanted to move quickly because he has vowed to finish both the bipartisan bill and a budget resolution needed to begin the huge partisan tax and spend reconciliation package before adjourning for August recess. The Senate was scheduled to adjourn for recess at the end of this week, but senators in both parties say a final vote on the bipartisan infrastructure bill could happen over the weekend or slip into next week, reports The Wall Street Journal.
Infrastructure Bill Faces Restive House Progressives: The Wall Street Journal reports that as the Senate moves forward with a roughly $1 trillion bipartisan infrastructure package, progressive Democrats are warning party leaders not to take their votes for granted as they try to advance sweeping antipoverty and climate proposals. Rep. Alexandria Ocasio-Cortez (D-NY) said that at least 10 House Democrats would vote against the infrastructure bill if it isn’t accompanied by the $3.5 trillion legislation, which is also expected to include huge tax increases on corporations and households. House Speaker Nancy Pelosi (D-CA) has said she won’t bring up the infrastructure package without the huge tax and spending bill.
House Dem Centrists Push Back on Linkage: Roll Call reports that Speaker Nancy Pelosi’s plan to link the Senate’s $550 billion bipartisan infrastructure plan to a $3.5 trillion budget reconciliation package is starting to backfire, as moderate Democrats warn they may not vote for a budget resolution needed to begin the reconciliation process unless it’s paired with a vote on the Senate bill. At least half a dozen Democrats have expressed reservations about voting for the budget resolution if Pelosi declines to bring up the bipartisan infrastructure bill after the Senate sends it to the House. Pelosi can lose no more than three Democrats on party-line votes because of her narrow majority.
Democrats Scramble for Cash to Cover Biden’s $3.5T plan: Politico reports that Democrats are scouring for savings and new tax money to bankroll their multitrillion-dollar plan of liberal spending priorities, drumming up a list of options ranging from raising the corporate tax rate to lowering prescription drug costs. The majority party has said the still-forthcoming bill will be “fully paid for.” But it won’t be easy to raise enough money to offset as much as $3.5 trillion in spending — a sum so massive it would eclipse the total GDP of Spain, Australia and Switzerland combined.
Senate Bill Would End 'Entire' Carried Interest Provision: ThinkAdvisor reports that Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Sheldon Whitehouse (D-RI) introduced legislation to end the entire carried interest provision. Wyden and Whitehouse’s bill, if passed, would include ending the recharacterization of income from wage-like income to lower-taxed investment income and the deferral of tax payments.
House Panel Passes Bills on Family Offices, Payment for Order Flow: ThinkAdvisor reports that the House Financial Services Committee passed a series of financial services bills that would codify actions by the U.S. Securities and Exchange Commission on senior exploitation, family offices and another that directs the SEC to study and consider banning payment for order flow practices. The bills passed the committee en bloc by a vote. If they become law, family offices with more than $750 million assets under management would have to register with the SEC. Another prohibits trading ahead by market makers. The SEC also is directed to study and consider banning or limiting the payment for order flow in certain arrangements.
Democrats Press Labor Department on ESG rules: InvestmentNews reports that a group of House Democrats last week sought assurance from the Department of Labor that it will reverse Trump-era rules that have discouraged the use of environmental, social and governance factors in retirement plans. In a letter to U.S. Department of Labor Secretary Marty Walsh, Reps. Andy Levin (D-MI), Cindy Axne (D-IA), Jesús García (D-IL), and others asked for an update on the DOL’s rule proposals on ESG criteria. Those items were included in the Employee Benefits Security Administration’s regulatory agenda in the spring, although it has not yet issued a proposal.
Regulation
SEC Chief Says New Climate Finance Rules Coming: E&E News reports that the SEC is working to finalize rules this year that would force public companies to disclose climate-related information such as their greenhouse gas emissions, the agency’s chief said. SEC Chair Gary Gensler said he’s asked the SEC staff to consider which metrics will be necessary to ensure investors sufficiently understand the threats climate change poses to the companies they invest in. Gensler said he wants SEC staff to have something the five-member SEC commission could "consider by the end of this year."
SEC Approves Rule to Rein in Rogue Brokerages: InvestmentNews reports that the SEC approved a FINRA rule last week designed to rein in brokerages with a history of misconduct or that employ a high number of registered representatives with disciplinary records. The rule imposes additional capital obligations on high-risk firms by requiring them to deposit cash or qualified securities in an account controlled by the Financial Industry Regulatory Authority Inc., the broker-dealer self-regulator. The money, which cannot be withdrawn without FINRA’s consent, could be used to fund arbitration awards or for other purposes.
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