Tim Scott’s Banking Program: What We Know

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The big mystery for financial industry lobbyists playing on the post-midterm landscape is Sen. Tim Scott and what he would do as head of the Senate Banking Committee. Here’s what we know after working our sources around the world Scott and the Washington financial bubble.

Familiarize yourself with Scott’s “Opportunity Program”. The conservative Republican from South Carolina does not report concrete details on how he would lead the committee, unlike Rep. Patrick McHenrywho outlined specific legislative objectives for House Financial Services.

Scott is essentially a blank slate on crypto politics, for example, which is set to dominate the financial policy debate next year.

But people who know Scott well say his priorities will align with the opportunity agenda he’s sketched out for years.

Economic empowerment, especially for workers, is a major theme. It reflects the personal story of Scott – the child of a single mother who rose from poverty as an insurance agent and went on to become one of the best-known politicians of his generation. This is manifesting in the form of bipartisan bills that would expand the types of consumer data that go into credit scoring and give credit unions more flexibility in the types of loans they can offer.

Saat Aletya Federal Hall Policy Advisors partner who was a key banking aide to Scott, has advice for crypto, real estate and banking interests keen to influence his former boss’s agenda: “People will have to prove that their policy ideas have a link to growing the economy for working-class people and making it easier for Americans to climb the economic ladder.”

Scott’s rhetoric and track record could make him a tricky political foil to populist Democrats, like current committee chairman Sherrod Brown, who also frame their policies around tackling inequality. It could also lead to bipartisan work, especially around a struggling housing sector that falls under Senate banking oversight, said Aaron Cutler, a former senior Republican House official who now leads the practice of government relations and public affairs at Hogan Lovells.

The 2024 factor is a big wild card for Scott. He is considered a possible candidate for the Republican presidential primary, and it is unclear how a campaign would affect his committee work. “The most important question, which I think will have a huge impact on his leadership, is what his political future is,” said a lobbyist who works with the committee.

Scott’s spokesperson said“Senator Scott’s Agenda of Opportunity aims to bring America’s forgotten communities back to life and create pathways to economic opportunity for all Americans. But under the leadership of Joe Biden and the Senate Democrats, access to the American dream is increasingly out of reach. The senator is eager to hold them accountable and chart a course of common sense once we know what the landscape of Congress will be. Any announcement before that would be premature.

IT’S FRIDAY — Good job day. Do you have a tip, a story idea or a comment to share? Let us know: [email protected] and [email protected].

Jobs report released at 8:30 a.m.… Boston Fed President Susan Collins speaks at 10 a.m.… Federal Reserve releases financial stability report at 4 p.m.

SECURE OIL CAP — Andrea Shalal, Noah Browning and Timothy Gardner of Reuters: “The Group of Seven rich countries and Australia have agreed to set a fixed price when they finalize a price cap on Russian oil later this month, rather than to adopt a floating rate, sources said on Thursday. U.S. officials and G7 countries have been engaged in intense negotiations in recent weeks over the unprecedented plan to cap prices on oil shipments by sea, which is expected to come into force on December 5 – to ensure that EU and US sanctions aimed at limiting Moscow’s ability to fund its invasion of Ukraine do not strangle the global oil market.

WHEN BIDEN WANTS TO TALK ABOUT INFLATION — Bloomberg’s Nancy Cook: “While his predecessors might have looked to Wall Street giants like Goldman Sachs Group Inc., Biden’s White House reached out to corporate executives like Apple Inc.’s Tim Cook, Brian Moynihan of Bank of America Corp. and executives of Target Corp retailers. and Walmart Inc., according to people familiar with the matter. Biden’s most frequent calls were with labor leaders, several of whom have been known to the president for years. He spoke occasionally with former Treasury Secretary Larry Summers, whom the president calls “Lar,” and gleaned snippets of information about the U.S. economy from people he met at church, golf and his grandchildren’s field hockey games at his home in Delaware.

BUDGET BATTLES Bloomberg’s Steven Dennis: “Senate Budget Chairman Bernie Sanders wants Democrats to raise the US debt ceiling by $31.4 trillion in a lame session if Republicans take control of the House or of the Senate in next week’s midterm elections to anticipate their plan to use it as leverage to force spending cuts next year.

BAD NEWS FOR REVENUE GOALS — WSJ’s Suzanne Vranica and Patience Haggin: “Food company General Mills Inc., Oreo maker Mondelez International Inc., Pfizer Inc. and Volkswagen AG’s Audi are among a growing list of brands that have temporarily suspended their advertisement on Twitter following Elon Musk’s takeover of the company.

GO OUT – Jim Dobbs of American Banker: “TIAA in New York is selling its banking unit to a group of investors as part of a broader strategic plan under new management to refocus on core pension and asset management businesses company assets.

PUNISHMENTS – POLITICO’s Benjamin Guggenheim: “The IRS’ Criminal Investigations Unit has identified and tracked nearly 50 Russians sanctioned in connection with the invasion of Ukraine, according to an annual report produced by the agency.”

OIL CAP — Our Charlie Cooper: “The UK government will prohibit countries from using the UK insurance industry to facilitate the transport of Russian oil unless it is sold under a set price cap. A G-7 price cap on Russian oil, announced by the group in September and now also backed by Australia, is set to come into effect on December 5, to match a planned EU ban on imports of Russian crude.

IT COULD HAPPEN TO YOU PT. II: SECOND-ORDER EFFECTS — WSJ’s Imani Moise and Alyssa Lukpat: “The Federal Reserve increases the Powerball jackpot without even buying a ticket…That’s because the advertised jackpot is the future value of the prize after being invested in 30 government bonds year.”

TECH PROBLEMS — Bloomberg’s Nick Turner: “Tech companies are again holding back hiring… Amazon.com Inc. said Thursday it would pause hiring of new employees, citing an “uncertain” economy and its recent hiring boom years. Lyft Inc., the ride-sharing company, is going further: it will cut 13% of staff, or about 683 people.

CONCERNED ABOUT INFLATION BUT DESIRE BANH MI – Bloomberg’s Jackie Davalos: “DoorDash Inc. reported revenue that beat analysts’ estimates, a sign that customers are still ordering expensive takeout despite pressure from higher inflation.”

WEALTH CREATION? ENCOUNTER WITH THE PRESERVATION OF WEALTH — NYT’s Ronda Kaysen: “American homebuyers are older, whiter and wealthier than at any time in recent history, with first-time buyers accounting for the smallest market share in 41 years, the National found. Association of Realtors in its annual profile. home buyers and sellers.

FALLING FOR SOMETHING – Dawn Lim and John Gittelsohn of Bloomberg: “In just over five years, a Blackstone Inc. real estate fund for retail investors has transformed into a $70 billion force in the US economy…Even though the BREIT strategy outperforms stocks — total net returns for its most popular stock class were 9.3% in the nine months to September — inflows are slowing and redemptions are up.

UNDER THE OVERPASS – POLITICO’s Jeremy White: “Gov. Gavin Newsom has issued a blanket rejection of local government plans in California to tackle homelessness, putting hundreds of millions of dollars in aid on hold – a harsh rebuke to the way cities and counties are tackling to the problem of metastases.

AT THE BEST WAY — Coindesk’s Jesse Hamilton: “Crypto apparently fared no better as a political topic in Congressional midterm campaigns in the run-up to the Nov. 8 general election. A remarkable number of candidates have been willing to say anything about digital assets in public, although many have assured the industry privately of what they would do for crypto and that their campaigns are worth watching. financially supported.

Sophie Baig and Akber Khan joined Morning Consult’s economic research division as analysts, reporting to chief economist John Leer. Baig most recently worked as an analyst on the Fed’s board in Washington, focusing on monetary policy and bank stress testing. Khan was also a Fed analyst covering issues such as banking and finance, short-term funding markets, and monetary policy.

The Independent Community Bankers of America has hired Kari Mitchum as Vice President of Payments Policy. She was previously a product strategist at Navy Federal Credit Union.

The Bank of Englandraised its policy rate by 0.75 percentage points on Thursday, its biggest hike since 1989. – Paul Hannan of the WSJ

Prime Minister Yair Lapid of Israel conceded Israel’s election Thursday night to Benjamin Netanyahu, paving the way for the Israeli opposition leader’s return as prime minister to head one of the most right-wing governments in Israel’s history Israel. —Patrick Kinglsey of the NYT

The International Energy Agency ‘sounds the alarm’ on gas supplies next year, warning European leaders not to become complacent following the recent price slump and urging them to take immediate action to secure supplies for the next winter. —FT’s David Sheppard