Banks Move Against Volcker Rule
Banks lobby to delay Volcker Rule. Reuters: "Banks are lobbying U.S. policy makers for a delay of up to seven years from a provision requiring them to sell investments in private-equity and venture-capital funds ... The Volcker rule, expected to be implemented in a few years, prohibits banks from investing in any fund they do not manage. Since the Volcker Rule was adopted, some banks have already made changes."
Obama snubs donors by clamping down on inversions. Bloomberg: "The administration’s connections to more than 20 donors associated with the transactions are causing tensions for the president as he urges Congress to act against the deals and prods the Treasury Department for short-term steps to curb them. The president’s tough talk also may become a liability as Democrats seek corporate America’s cash this year as they try to preserve their majority in the U.S. Senate."
Hillary Seeks To Quiet Talk Of Rift
Clinton disavows charge she sought to criticize WH foreign policy. Politico: "Hillary Clinton called President Barack Obama on Tuesday to 'make sure he knows that nothing she said was an attempt to attack him' when she recently discussed her views on foreign policy in an interview with The Atlantic..."
"Hillary Clinton Has Made Her First Major Blunder of the 2016 Campaign" argues TNR's Noam Scheiber: "...opposition among Democrats to overseas interventions, particularly in the Middle East, remains so strong and raw that, if Clinton continues in this vein, even a weaker insurgent candidate than Warren could theoretically rough up Clinton in a primary..."
Breakfast Sides
Deficit down 24% from last year. Bloomberg: "The U.S. budget deficit so far this fiscal year is 24 percent narrower than it was a year ago as a stronger economy helps revenue advance almost seven times faster than spending ..."
NYT edit board urges investment in high-speed rail: "Critics argue that such services cannot survive without public subsidies ... [But] most forms of public transportation are subsidized somehow by the government ... Skeptics also greatly underestimate the country’s long-term transportation needs ... the American population will cross 400 million in 2051, and the country is becoming more urban ... California recently started building the first phase of an ambitious project in the Central Valley ... in Florida andTexas, private businesses are planning to build and operate lines ... These efforts should be an inspiration to Congress."
Republican primary voters put Wisconsin House seat at risk. The Hill: "Controversial state Sen. Glenn Grothman (R) has won the Republican primary to replace retiring Rep. Tom Petri (R-Wis.), opening the door for Democrats to compete in the district this fall ... Grothman recently said it was 'unbelievable' that Secretary of State John Kerry criticized Uganda's harsh anti-gay laws, and has repeatedly called homosexuality a 'sin,' saying it 'should not flourish' in American society. He's also attacked what he's called the 'war on men' during a 2010 Tea Party rally, has said that 'money is more important for men' as part of explaining why he opposed equal pay legislation, and has sponsored legislation that said that single parenting is a contributing factor to child abuse."
Michelle Rhee to quit her anti-teacher union group. Huffington Post: "Former Washington, D.C., schools chancellor Michelle Rhee has told people close to her that she is preparing to step down as CEO of StudentsFirst, the advocacy organization she created ... 'She's been really brutally attacked personally, and StudentsFirst has not been as effective as she wanted,' said a former prominent StudentsFirst staffer, who declined to be named ... It's unclear whether StudentsFirst will draw as much attention without its famous founder."
