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Cain fading for Fed — MM is told by a well-placed source that the odds of Herman Cain ever getting nominated to the Fed are quite low, though President Trump has yet to fully move off the idea. Conservative groups are rallying to the defense of Steve Moore but that potential nomination may also not reach the Hill. Other candidates are currently being interviewed and considered.
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Are we safer now? — From a joint POLITICO Agenda op-ed by Ben S. Bernanke, Timothy F. Geithner and Henry M. Paulson, Jr. adapted from their new book: “Firefighting”: “A decade later, the vital question to ask is whether the United States is better prepared today. We believe the answer is: yes and no.
“There are better safeguards in place to avoid a panic in the first place … But the emergency authorities for government officials to respond when an intense crisis does happen are in many ways even weaker than they were in 2007.”
Kudlow on the tax cuts — MM spoke with White House NEC Director Larry Kudlow about why he thinks the tax cut bill remains so unpopular despite President Trump’s overall strong ratings on the economy: “My basic point is on the big polls, WSJ, NBC, Harris, Harvard, Harris, Battleground he’s up around 58 percent on the economy, it’s his best area by far.
“People are very happy with the economy and regarding the tax cuts, they are a means toward that end … Right now we have good prosperity and it’s showing up in the poll numbers.”
THIS MORNING ON POLITICO PRO FINANCIAL SERVICES — Katy O’Donnell on new Federal Housing Finance Agency Director Mark Calabria’s warning that the foundations of the nation’s mortgage finance system are “vulnerable.” To get Morning Money every day before 6 a.m., please contact Pro Services at (703) 341-4600 or [email protected].
SOME HOPE FROM PARIS — Via the NYT: “Around 500 firefighters battled the blaze for nearly five hours. By 11 p.m. Paris time, the structure had been ‘saved and preserved as a whole,’ the fire chief, Jean-Claude Gallet, said.” Read more.
GET SMART FAST — My latest video for GZeroMedia breaks down U.S. politics in just 60 seconds.
NEW IN NYT MAG — New cover up this a.m. in which Nick Confessore, reports on “the Trump administration, Mick Mulvaney, and how Trump set loose predatory lenders.”
FIRST LOOK: NEW DATA ON WOMEN IN THE WORKFORCE — Via a new report out this a.m. from ADP: “Women are promoted earlier than men, but face a glass ceiling at the fourth level of management
“Average wage is $29.03 per hour, with women earning 79% of what men earn. Women earn $25 an hour, 79% of the $32 for men. Ratio of women’s pay to men’s reaches as high as 82% at the fourth level of management, but drops to 77% at the top levels of the firm.” Read more.
BERNIE’S MILLIONS — Our Nolan D. McCaskill: “Bernie Sanders made over $1 million in two of the past three years, according to filings the Sanders campaign made public Monday. Sanders hit the millionaire milestone in 2016 and sustained it in 2017. But the independent Vermont senator’s total income fell to $566,000 last year.” Read more.
HOUSE DEMS SUBPOENA DEUTSCHE BANK — Our Zachary Warmbrodt and John Bresnahan: “House Democrats on Monday issued a subpoena to the German lender Deutsche Bank seeking information on … Trump’s finances, a major escalation of their investigation into his business dealings.
“In addition to the Deutsche Bank subpoena, House Democrats subpoenaed other banks — including JPMorgan Chase, Bank of America and Citigroup — seeking information on Russian money laundering. The issuance of the subpoenas was first reported by The New York Times.” Read more.
WATERS RAISES CORPORATE MONEY — Also by Zach: “Rep. Maxine Waters is embracing corporate campaign contributions as the new chairwoman of the House Financial Services Committee, even as other progressive Democrats have sworn off fundraising from businesses.
“The California Democrat’s campaign received about $210,329 in contributions during the first three months of this year, most of which came from industry PACs … About $38,329 came from individual contributions.” Read more.
AOC SHUNS BANKS — Via FOX Business Network’s Charlie Gasparino: “The FOX Business Network has learned that firebrand first-term liberal Democrat Alexandria Ocasio-Cortez, who represents a swath of the city in the U.S. House of Representatives, hasn’t met with bank executives despite overtures made to her since she took office in January.” Read more.
MNUCHIN HIGHLIGHTS IMPORTANCE OF AN INDEPENDENT FED — AP’s Martin Crutsinger: “Treasury Secretary Steven Mnuchin said Monday that the Federal Reserve’s independence is important globally, while refusing to comment on … Trump’s latest attack on the Fed.” Read more.
WHERE’S THE GROWTH AT GOLDMAN, CITI? — WSJ’s Aaron Back: “Cost cuts and share buybacks boosted results at Citigroup and Goldman Sachs, but that’s no way to grow a bank over the long term. In the first quarter, revenue fell by 2% from a year earlier at Citigroup and 13% from a year earlier at Goldman on tough market conditions. Discipline on costs saved the day. Total operating expenses declined by 3% at Citigroup and by 11% at Goldman. That, combined with share repurchases worth $4.1 billion at Citigroup and $1.25 billion at Goldman contributed to decent earnings-per-share figures.” Read more.
Goldman offered fresh details on its overhaul — Reuters’ Elizabeth Dilts and Aparajita Saxena: “Goldman … offered new tidbits about its sweeping operational overhaul when reporting first-quarter results … but investors focused on revenue declines across nearly all its main businesses, sending shares lower. The fifth-largest bank by assets said it plans to grow retail deposits by $10 billion a year and shift more business into its banking units to lower its funding cost by one percentage point.” Read more.
FED’S EVANS NOT RULING OUT RATE RISES — WSJ’s Michael Derby: “Federal Reserve Bank of Chicago leader Charles Evans said Monday that while he still expects the Fed to raise rates amid a hopeful economic outlook, the door is open to rate cuts as well.
“‘I do have the expectation that towards the fall of 2020 we have one rate increase, and one more rate increase the following year,’ Mr. Evans said in an interview with The Wall Street Journal ahead of a speech before an economists’ group in New York.” Read more.
WHO GOES PUBLIC WHEN? — NYT’s Erin Griffith and Michael J. de la Merced: “I.P.O.s are generally a crowning moment that validate years of work. So companies approach the day as something more than a financial transaction — it is also a coming-out party, a branding event and a celebration.
“And it is a time when the companies do not want to share the spotlight. ‘Most of these companies have been private for 10-plus years, and it’s a huge moment,’ said Nelson Griggs, president of the Nasdaq Stock Exchange, who oversees new listings. ‘Having their own day is important.’” Read more.
HULU SPENDS $1.43B TO BUY BACK AT&T STAKE — Reuters: “Hulu has bought back wireless carrier AT&T Inc’s stake in the U.S. entertainment streaming service for $1.43 billion, in a deal that values Hulu at $15 billion, the two companies said on Monday. The sale of AT&T’s 9.5 percent stake to Hulu in a cash deal gives Walt Disney Co, which holds a 60 percent stake in Hulu via a joint venture, more control of the company.” Read more.
MORTGAGE MARKET “VULNERABLE” — By Katy O’Donnell: “The foundations of the nation’s mortgage-finance system are ‘vulnerable,’ with many Americans either unable to buy homes or overburdened with debt, new Federal Housing Finance Agency Director Mark Calabria said Monday.
“‘I enter this office with a great sense of urgency,’ Calabria said after being sworn in at the agency. ‘The foundations of our current mortgage finance system remain vulnerable. After years of strong house price growth, too many families are locked out of housing, while others are, in my opinion, dangerously leveraged. We must not let this opportunity for reform pass.’” Read more.
TRANSITIONS — Per release: “Prosek Partners, a leading independent public relations and financial communications firm, is pleased to announce David Wells has joined as Partner from Goldman Sachs.
“Wells has more than 25 years of strategic financial communications experience and most recently was Chief Marketing and Communications Officer for the Consumer and Investment Management Division of Goldman Sachs”
Meredith Balenske is moving to Hong Kong to be global head of communications for GLP, a global investment firm with $64B AUM in real estate and PE funds. She previously was VP of comms at Revolution.
HOW TO FIX THE WEALTH DIVIDE — Millionaire and former Managing Director of BlackRock, Inc. Morris Pearl and U.S. Representative Pramila Jayapal argue in an op-ed that “hanges to our tax code are the best way to fight inequality.” … And a new report out from the Institute for Policy Studies looks at “Ten Solutions to Bridge the Racial Wealth Divide.”