Staff Shift May Lead To Shutdown
Departure of top McConnell negotiator seen as increasing chances of shutdown. W. Post: "[Rohit Kumar] has been at McConnell’s side through every major fiscal deal since President Obama took office ... One administration official, who dealt with Kumar during the fiscal-cliff talks, called him an 'evil genius' whom the White House never trusted totally but viewed as a principled opponent who knew the policy, had 'a nose for the deal' and was always genuinely trying to defuse the bomb du jour."
NYT's Krugman debunks claim that "uncertainty" is holding economy back: "... we understand perfectly well why recovery has been slow, and confidence has nothing to do with it. What we’re looking at, instead, is the normal aftermath of a debt-fueled asset bubble; the sluggish U.S. recovery since 2009 is more or less in line with many historical examples, running all the way back to the Panic of 1893. Furthermore, the recovery has been hobbled by spending cuts — cuts that were motivated by what we now know was completely wrongheaded deficit panic."
Obama urges Greece to go beyond austerity. NYT: "In a meeting in the Oval Office, Mr. Obama told Antonis Samaras, the Greek prime minister, that policies focused only on spending reductions would not help Greece return to economic prosperity. 'In dealing with the challenges that Greece faces, we cannot simply look to austerity,' Mr. Obama said in brief remarks to reporters after the two leaders met. 'It’s important that we have a plan for fiscal consolidation to manage the debt, but it’s also important that growth and jobs are a focus.' Mr. Samaras echoed Mr. Obama’s concerns, noting that youth unemployment in his country had reached 60 percent."
Obama schedules East Room presser at 3 pm ET per NBC News.
Feds Step Up Legal Efforts Against Banks
Obama's financial fraud task force gains steam. Bloomberg: "The criminal investigation of JPMorgan Chase & Co.’s mortgage-backed securities practice is evidence a U.S. Justice Department task force set up to investigate causes of the financial crisis is finally getting some traction against banks blamed for ruining the economy ... The group has faced criticism from lawmakers and consumer advocates for its failure to live up to the promises President Obama made when he announced its establishment in his January 2012 State of the Union address ... The uptick in the group’s work has mostly been on the civil side, as the department’s attorneys have begun to focus on and use a 1989 statute that allows the government to seek civil penalties for losses to federally-insured financial firms that occurred as long as a decade ago. Standard securities-fraud cases need to be brought within five years."
JPMorgan Chase may settle "London Whale" case. Bloomberg: "JPMorgan Chase & Co. is negotiating final terms of a deal with U.S. securities regulators to end a yearlong probe of derivatives bets that led to the bank’s biggest trading loss ever ... While JPMorgan is prepared to say it erred in how it oversaw a unit and London-based traders, executives aren’t likely to admit mistakes beyond what they already disclosed ... How much the bank pays to settle is being debated..."
FDIC accuses Sallie Mae of breaking the law. HuffPost: "The Federal Deposit Insurance Corp. last month notified Sallie Mae that it plans to slap the company's banking subsidiary with an enforcement action accusing it of violating laws that ban 'unfair or deceptive' practices and discriminatory lending ... The FDIC also told Sallie Mae it intends to publicly accuse the company of violating the Servicemembers Civil Relief Act, a federal law intended to alleviate certain legal, administrative and financial pressures on active-duty members of the military. The Department of Justice, which enforces the servicemembers law, also is probing the company."
Majority of House Would Back Immigration Reform
Rep. Luis Gutierrez claims at least 40 House Republican votes for immigration reform. W. Post: "[Gutierrez said] that the House has more than enough GOP votes — around 40 or 50 — to pass comprehensive immigration reform if it were brought to a vote. But Gutierrez said Republicans who support the idea are staying deliberately quiet to avoid a backlash from conservative activists ... If Boehner didn’t enforce the Hastert Rule — something he has sworn he will do — and all 201 House Democrats backed an immigration bill, the bill would need 17 Republicans to pass."
Tech industry group spends to help defend Rep. Paul Ryan on immigration. Politico: "The arm of the Mark Zuckerberg-backed immigration reform group that focuses on conservatives is going on air in Milwaukee with a pro-reform spot defending Rep. Paul Ryan ... double what the anti-immigration Federation for American Immigration Reform is spending on 30-second spots accusing Ryan of backing 'amnesty.' ... Ryan has been working to push for a version of comprehensive reform in the House."
