Warren talks Trump – Politico

WARREN ON TRUMP: NUCLEAR WAR IS BAD FOR BUSINESS — In a new Bloomberg Businessweek interview out this a.m., Sen. Elizabeth Warren (D-Mass.) on the huge disparity in Wall Street donations in favor of Hillary Clinton over Donald Trump”: “I don’t see it as a swing back to Democrats so much as I see it as supporting sanity. The financial-services people, as much as many of them would like to see more deregulation, are also deeply frightened by the prospect of a Trump presidency. Nuclear war is bad for business.”

Warren on her biggest disappointment with the Obama White House: “Mary Jo White and the SEC. They have failed to prosecute wrongdoers. Failed to put tough regulation in place. Failed to take up changes that they have the authority to make and that would restore more confidence in the fairness of operations on Wall Street. That really hurts.” http://bit.ly/2aOI20W Cover image: http://politi.co/2aPIX1m

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THE CLINTON CABINET — ICYMI, some Wall Street nuggets in this Edward-Isaac Dovere POLITICO piece, first on chief of staff: “Most people see this as a choice between Cheryl Mills, Clinton’s chief of staff at the State Department, and [Morgan Stanley exec] Tom Nides, Clinton’s deputy secretary of state for management.

“Both have remained close to Clinton, with Mills acting as part of the extremely small inner circle on the running mate decision, and Nides as one of the closest outside advisers. … Nides would have the advantage of many long relationships in Washington, which Clinton is said to value in an expected effort to focus more on outreach to Capitol Hill than Obama did.”

On Treasury: “The list here is long and complicated. The Elizabeth Warren-Bernie Sanders axis is watching this appointment for proof of Clinton’s commitment to the progressive economics she’s been talking up on the campaign, while business leaders and Republicans are worried about exactly that. The sense among people in the know is that Clinton would want someone with some private sector though not Wall Street experience, to have the competing perspective on regulation.

“There’s considerable speculation here that Clinton would try to land Sheryl Sandberg, who spent years at Treasury before heading to Silicon Valley and becoming COO of Facebook, to be the first female Treasury secretary. Gary Gensler, who served in a variety of economic roles for Obama and Bill Clinton and is now CFO for the campaign is seen as wanting the job, as is Lael Brainard, another Treasury veteran who’s now on the Federal Reserve’s Board of Governors.

“Some see a potential transition here for current Health and Human Services Secretary Sylvia Burwell, though the expectation is she’d want a break after her years working for Obama. Also bouncing around on some lists: Gene Sperling, director of the National Economic Council under both Bill Clinton and Obama, who remains close with the Clintons, advises the campaign and even starred in a funny video knocking Trump that was played at the convention.” http://politi.co/2azaqnm

SEEMS LIKE A GOOD TIME … To resurrect our Clinton Treasury Secretary list. Email me your current lineup of the above candidates … or add ones not mentioned. bwhite@politico.com

REACT — Via Revolving Door Project’s Jeff Hauser: “[T]he piece highlights more people currently serving as influence industry ‘consultants’ than ardent progressives. One can only imagine how much more money those influence peddlers will be able to charge clients as the idea that they might soon be Cabinet members spreads among corporations, domestic and international.”

MORE ON TBTF — Better Markets’ Dennis Kelleher emails on the HPS item in Wednesday’s MM: “Cherry picking data and quotes won’t end the too-big-to-fail threat, which remains alive and well where (1) there are still no credible domestic or international resolution regimes or plans; (2) interconnectedness remains at all-time highs; …

“(3) 90+ percent leverage/thin loss absorbing equity cushions; (4) a high risk concentrated derivatives oligopoly; and (5) regulation, stress testing, planning, etc., largely based on the failure of a single firm rather than planning for collective failure like 2008. Things are better since then, but there’s still a lot more to do before too-big-to-fail is ended.”

DAILY POLL FIX — Fox News has Clinton up by 10, 49-39 over Trump. fxn.ws/2aPJxwi

That puts the RCP average up to Clinton + 5.5

GOOD THURSDAY MORNING — Email me on bwhite@politico.com and follow me on Twitter @morningmoneyben.

THIS MORNING ON POLITICO PRO FINANCIAL SERVICES – Patrick Temple-West on the fight over a proposed SEC rule change that pits mutual funds against Sen. Elizabeth Warren and the paper industry — and to get Morning Money every day before 6 a.m. — please contact Pro Services at (703) 341-4600 or info@politicopro.com.

DRIVING THE DAY — President Obama holds a news conference at 4:15 p.m. at the Pentagon following a NSC meeting on ISIS … Treasury Secretary Lew will attend the NDC meeting … Donald Trump campaigns in Portland, Maine at 3:00 p.m. … Mike Pence is in Raleigh, N.C., Virginia Beach, Va. and Norfolk, Va. … Hillary Clinton is in Las Vegas and Tim Kaine is in Baltimore at the National Urban League conference … POLITICO Playbook Breakfast at 8 a.m. features former National Security Adviser to President Barack Obama, Tom Donilon; and former National Security Adviser to President George W. Bush, Stephen Hadley … Factory Orders at 10:00 a.m. expected to drop 1.9 percent.

WISCONSIN BIGS SAY NO TO TRUMP — Milwaukee Journal Sentinel’s Patrick Marley: “Wisconsin’s top three Republicans are skipping Donald Trump’s visit to Green Bay. The billionaire GOP presidential nominee’s trip to the Badger State is coming just days after he declined to endorse House Speaker Paul Ryan and praised Ryan’s primary opponent, Paul Nehlen. On Wednesday, Trump’s running mate, Indiana Gov. Mike Pence, told Fox News he was backing Ryan in next week’s Republican primary.

“Also Wednesday, Gov. Scott Walker made clear where he stood in the feud between Trump and Ryan. ‘I’m 100 percent with Paul Ryan,’ Walker said in a brief interview in a state Capitol hallway. Walker, Ryan and U.S. Sen. Ron Johnson are all taking a pass on appearing with Trump on Friday.” http://bit.ly/2awQh0P

AGING WORKFORCE HITS ECONOMY — WSJ’s Greg Ip: “Planning to retire in the next few years? Please reconsider: The economy needs you more than you know. Economists have long expected an aging population to hamper growth for the simple reason that it means a smaller labor force. But new research has identified a potentially more powerful impact: Rapid retirements deprive companies of critical experience and knowledge, which undermines productivity across the entire economy.

“Demographics may thus be a critical factor in why the current economic expansion, which began as the first baby boomers qualified for Social Security, is the weakest on record. The findings are contained in a new paper by Nicole Maestas of Harvard University and Kathleen Mullen and David Powell of the Rand Corp … Their conclusion: On average, every 10 percent increase in the share of state’s population over the age of 60 reduced per capita growth in gross domestic product by 5.5 percent.” http://on.wsj.com/2aOMuwG

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GO BIG ON INFRASTRUCTURE — Reuters Breaking Views’ Jeffrey Goldfarb: “With interest rates at record lows, there’s growing support on the campaign trail for rebuilding U.S. roads and bridges. Donald Trump called for at least doubling the $275 bln in spending proposed by Hillary Clinton. To grow jobs, wages and GDP, it’s a policy deserving of a deal.” http://reut.rs/2aVLaXo

KAINE RIPS TRUMP ON SMALL BUSINESS — POLITICO’s Burgess Everett: “Tim Kaine unloaded on … Trump’s business record during a tour of a window treatment and bed factory, saying Trump has a ‘repeated track record’ of snubbing small businesses.

‘The Trump business record is one where small businesses are looked at as kind of expendable,’ Kaine said, citing reports about contractors being stiffed after working on his projects. ‘This is such a stark contrast.’” http://politi.co/2azbgQP

TRUMP RAISES $80M — POLITICO’s Nick Gass: “Trump raised $80 million in July between his campaign and joint fundraising efforts with the [RNC] and state parties, the Republican nominee’s campaign announced Wednesday, lagging Hillary Clinton in overall contributions in the last month by about $10 million. Of the $80 million raised, Trump’s campaign said in a press release that approximately $64 million came through the campaign’s digital and direct mail operations with the RNC.

“Trump previously told supporters on Monday in Ohio that the campaign had raised $35.8 million directly and suggested that the totals for the joint fundraising agreements were still being tabulated at the time. … Overall, the campaign has $37 million on hand, while the joint fundraising committees have an additional $37 million. … By comparison, Clinton’s campaign alone reported Tuesday that it had $58 million in the bank and raised $63 million directly through the campaign and an additional $26 million for the [DNC] … for an overall total approaching $90 million.” http://politi.co/2aRU36Q

TESLA REVENUE FALLS SHORT — FT’s Richard Waters: “Tesla Motors claimed to be making headway in overcoming its recent production problems on Wednesday as it released revenues that fell short of Wall Street expectations and revealed a sharply higher loss on escalating costs. However, the US electric car maker’s shares held up in after-market trading on a stronger than expected advance in its gross profit margin, as well as hopes that it was finally getting past some of the production bottlenecks that had bedevilled it since the launch of its Model X crossover sport utility vehicle last October.

“Meanwhile, Elon Musk, chief executive, dismissed concerns about Tesla’s plans to build self-driving cars following the death in May of an owner who was using an early version of the technology. ‘Full autonomy is going to come a hell of a lot faster than anyone thinks it will,’ Mr Musk said. ‘What we have under development is going to blow your mind. It blows my mind.’ … Wall Street had been concerned that the recent launch of a lower-priced version of Tesla’s mainstay, the Model S, might signal flagging demand and would eat into margins” http://on.ft.com/2aVCIHt

CROWDFUNDING FOR KHAN A veteran activist in Virginia used Crowdpac to launch a crowdfunding campaign to draft Khizr Khan for office. It’s already raised over 10K.” http://bit.ly/2auLhZm

GOLDMAN EMPLOYEES YANK MONEY FROM OCH-ZIFF — Bloomberg’s Hema Parmar: “Goldman Sachs Group Inc.’s retirement plan is pulling cash from one of the investment bank’s most famous alumni, liquidating a hedge fund run by Daniel Och’s Och-Ziff Capital Management Group. Almost all of the multi-strategy fund Goldman arranged for employees will liquidate by Sept. 1, according to an investor letter obtained by Bloomberg.

“The fund dropped an annualized 6.9 percent over the past 12 months, documents provided to investors show. Its assets have declined to about $350 million, a person familiar with the matter said, from $423.6 million in March. The move is another blow for Och-Ziff, which has been plagued by redemptions and a federal probe.” http://bloom.bg/2awSeKv

ANOTHER BILLIONAIRE FOR CLINTON — Reuters’ Lawrence Delevinge: “Billionaire hedge fund manager Seth Klarman said on Wednesday he would work to get Hillary Clinton elected president of the United States because he finds recent comments by Donald Trump ‘shockingly unacceptable.’ ‘His words and actions over the last several days are so shockingly unacceptable in our diverse and democratic society that it is simply unthinkable that Donald Trump could become our president,’ Klarman said of the Republican presidential nominee.

“The president and chief executive of The Baupost Group told Reuters in an emailed statement that Trump’s suggestion ‘that the election will be rigged is particularly dangerous.’ ‘I will continue to find ways to support Hillary Clinton and defeat Donald Trump,’ he said. … Klarman, whose Boston-based investment firm manages $29 billion, is registered as an independent voter. But a review of filings showed that his political giving has largely benefited Republicans over the years” http://reut.rs/2amSokS

NEW LEVEL OF PANIC — WP’s Philip Rucker, Dan Balz and Matea Gold: “Turmoil in the Republican Party escalated Wednesday as party leaders, strategists and donors voiced increased alarm about the flailing state of Donald Trump’s candidacy and fears that the presidential nominee was damaging the party with an extraordinary week of self-inflicted mistakes, gratuitous attacks and missed opportunities. [RNC] Chairman Reince Priebus was described as ‘very frustrated’ with and deeply disturbed by Trump’s behavior over the past week, having run out of excuses to make on the nominee’s behalf to donors and other party leaders …

“Meanwhile, Trump’s top campaign advisers are struggling once again to instill discipline in their candidate, who has spent recent days lurching from one controversy to another while seemingly skipping chances to go on the offensive against … Clinton. ‘A new level of panic hit the street,’ said longtime operative Scott Reed, chief strategist for the U.S. Chamber of Commerce. ‘It’s time for a serious reset.’” http://wapo.st/2amTH2Y

FED FINES GOLDMAN — NYT’s Ben Protess: “The Federal Reserve took action on Wednesday against Goldman Sachs and one of its former executives, escalating a long-running investigation into a leak of confidential government information. The action, which forced Goldman to pay a $36.3 million penalty, stemmed from an incident in 2014, when a junior Goldman banker took confidential information from the Federal Reserve Bank of New York. The junior banker, whom Goldman promptly fired, received the information from a New York Fed employee.

“Both men pleaded guilty to stealing government property, and Goldman paid a $50 million penalty to New York State regulators because its ‘management failed to effectively supervise’ the banker. The Fed did not act against Goldman at the time, making its decision to pursue Goldman now a somewhat unusual move. The action, which cites Goldman for an ‘unauthorized use and disclosure of confidential supervisory information,’ is also an awkward one for the Fed” http://nyti.ms/2aBu2Ed

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