Daily Archives: January 8, 2017

Welcome to the Twilight Zone: Trump Intervenes to Oust Ohio’s G.O.P. Chair

NY Times:
Proving that no target is too small for a Trump scorned, the president-elect helped oust the chairman of the Ohio Republican Party who had opposed his election and install an ally in a state where Republican officials were deeply split over Mr. Trump’s candidacy.

One day after Mr. Trump took the extraordinary step of calling Ohio Republicans in an effort to defeat the sitting chairman, Matt Borges, a divided state party on Friday replaced him with Jane Timken, a Trump supporter and donor.

The fight effectively became a proxy battle between Mr. Trump and Gov. John R. Kasich of Ohio, who never endorsed Mr. Trump and supported Mr. Borges. The 66 voting members of the state Republican Party were almost evenly split between the candidates after two rounds of balloting. Then they decided to avert a third ballot by naming Ms. Timken chairwoman and creating a new post for Mr. Borges, “chairman emeritus.”

It was nonetheless a clear victory for Mr. Trump, who was able to overcome Mr. Kasich’s determined lobbying of a group of activists in his own state, some of whom were hand-picked by the popular governor.

Fed’s Powell Urges Congress to Take Another Look at Volcker Rule

Federal Reserve Governor Jerome Powell urged Congress to rewrite the Volcker Rule that restricts proprietary trading, while urging “a high degree of vigilance” against the buildup of financial risks amid improving U.S. growth.

“What the current law and rule do is effectively force you to look into the mind and heart of every trader on every trade to see what the intent is,” Powell said Saturday at the American Finance Association meeting in Chicago. “Is it propriety trading or something else? If that is the test you set yourself, you are going to wind up with tremendous expense and burden.”

Powell’s comments compare to Fed Chair Janet Yellen, who has supported the sweeping bank rules of the 2010 Dodd-Frank Act in the wake of the global financial crisis. President-elect Donald Trump has vowed to dismantle Dodd-Frank. The Volcker Rule restricts banks with taxpayer-backed deposits from making certain types of speculative “proprietary” trades.

Read on.