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In Virginia’s Democratic legislature, campaign finance reform bills languish without votes – Virginia Mercury

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In Virginia’s Democratic legislature, campaign finance reform bills languish without votes – Virginia Mercury

As it gets more and more expensive to win a seat in the Virginia General Assembly, the state legislature continues to find new ways to stifle efforts to put limits on the state’s wide-open campaign finance laws.

This year, several bills meant to slow the flow of money into Virginia politics have been blocked without lawmakers taking a recorded vote showing that’s what they’re doing.

For the last decade, proposals have been introduced to create stricter campaign finance limits in Virginia and boost public confidence that the legislature can’t be bought by special interests writing checks of unlimited size. 

Some Democrats have been vocal about making campaign finance reform a priority, and many have accepted big checks from Clean Virginia, a well-funded advocacy group focused on energy and campaign finance reform that says its mission is to “fight corruption in Virginia politics.” 

But the party’s retaking of full control of the General Assembly this year doesn’t appear to be producing any breakthroughs on campaign finance issues as Tuesday’s crossover deadline approaches. As the two chambers rush to finish work on their own bills, no major campaign finance legislation has made it through both sides of the Capitol. If those positions hold in the second half of the session, none of the bills will win final passage.

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Instead, Democratic-sponsored campaign finance proposals are languishing in Democratic-controlled committees, where several bills have been allowed to expire without a hearing. 

When Del. Josh Cole, D-Prince William, presented a bill that would prohibit candidates from accepting campaign money from public utilities like Dominion Energy, the proposal died without a vote when no one on the 22-member House Privileges and Elections Committee made a motion for or against it. A bill sponsored by Del. David Bulova, D-Fairfax, that would have set caps on donations from both corporations and individuals was never docketed by the same committee.

In an interview, Cole said he’ll keep fighting for campaign finance reform, despite his latest bill failing in an unusual fashion.

“Time will tell what will happen,” Cole said. “The appetite is definitely there for it.”

On the Senate side, another utility-focused campaign finance reform bill sponsored by Sen. Danica Roem, D-Prince William, made it out of the chamber’s elections committee, but stalled when it was sent to the Finance and Appropriations Committee. It never got a hearing there, despite being projected to have no impact on the state budget.

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When asked why Roem’s bill wasn’t docketed, Sen. Louise Lucas, D-Portsmouth, who chairs the Senate Finance Committee, criticized the bill itself instead of offering any procedural explanation.

“The people who are complaining about Dominion being a monopoly want to replace them,” Lucas said. “They want to be the monopoly. So what’s the difference?”

Clean Virginia’s critics have often accused the organization and its main funder, wealthy Charlottesville investor Michael Bills, of engaging in a new form of influence-peddling by offering substantial checks to lawmakers who vow to stop accepting money from Dominion.

In an interview, Roem didn’t sound disheartened over her bill’s fate.

“This is the first time we’ve ever gotten out of committee. This still marks progress,” Roem said. “Clearly we have more steps to go.”

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Nancy Morgan, a campaign finance reform advocate with BigMoneyOutVA, said Democratic leaders appear to be “strong-arming the members to kill the bills in untransparent ways.”

“Not allowing bills to be voted on, or even heard by legislators, is anathema to our democratic process,” Morgan’s group said in a statement last week.

A seemingly less controversial proposal to prohibit spending campaign cash on personal uses unrelated to politics — something already banned at the federal level and in almost every other state — looked to be on track to pass this year after clearing the state Senate 35-4 and passing the House elections committee unanimously. But the House version was bottled up in the budget-writing committee after three state agencies estimated it would cost them more than $745,000 to add more staff to implement the law. 

However, the legislature’s own fiscal analysts sharply disagreed with that figure, saying the law would create virtually no new costs and wouldn’t substantially add to anyone’s existing workload.

“It just seemed highly inflated,” said Del. Cia Price, D-Newport News, who chairs the House elections committee and formally requested a second opinion on the steep cost estimate.

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In a written analysis attached to the personal use bill, staffers at the Joint Legislative Audit and Review Commission said they concluded the proposal wouldn’t substantially burden state agencies after looking at similar laws in Georgia and Tennessee. Both states already have systems for investigating complaints and issuing advisory opinions similar to what the Virginia proposal envisioned, JLARC found, and the strain on staff is minimal because there are usually just a few cases to handle per year.

“JLARC estimates the fiscal impact of the bill would be negligible,” the General Assembly’s analysts said in their rebuttal to the estimates from the Virginia Department of Elections and Virginia Department of Corrections.

The JLARC statement didn’t address an additional $429,426 estimate from the office of Attorney General Jason Miyares, which claimed it would need two additional attorneys and a paralegal to help implement the law.

Despite JLARC disputing the projected costs of the personal use bill, Del. Marcus Simon, D-Fairfax, said its chances of passage are now “slim to none” after failing to pass the House. The House can still take up the Senate version of the bill, but Simon said it’s unlikely to be a priority for the body late in the session as lawmakers try to finalize more big-ticket items.

Despite Simon’s less-than-optimistic prediction about the fate of efforts to ban the personal use of campaign money, Clean Virginia said it still hopes a “commonsense ban” can pass this year after clearing the Senate with an “overwhelming bipartisan majority.”

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Passage of this bill would represent a strong first step towards comprehensive campaign finance and ethics reform in Virginia,” said Clean Virginia Legislative Director Dan Holmes.

General Assembly members and statewide officeholders are prohibited from raising campaign funds during legislative sessions, but the latest effort to extend that ban to special sessions also appears to be on track to die without lawmakers attaching their names to a vote.

A bipartisan bill banning fundraising during “active” special sessions made it to the Senate floor. But in an unrecorded voice vote last week, the Senate chose to send the bill back to its elections committee, a maneuver that killed the bill because the panel was already done with its work on Senate bills.

On the floor, Senate Majority Leader Scott Surovell, D-Fairfax, said the bill “had a lot of issues.”

“It’s going to create more problems than it’s going to solve,” Surovell said.

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Sen. David Suetterlein, R-Roanoke, the bill’s sponsor, objected to the move, saying his legislation appeared to be heading for the same death by unrecorded vote that often befalls bills to ban the personal use of campaign funds.

“Every year it found a different way to die on an unrecorded vote,” Suetterlein said.

Mercury reporters Nathaniel Cline and Charlie Paullin contributed to this story.

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Germany won't sell more Commerzbank shares for now, finance agency says

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Germany won't sell more Commerzbank shares for now, finance agency says

A customer enters a Commerzbank AG bank branch in Berlin, Germany, on Tuesday, Aug. 6, 2024.

Bloomberg | Bloomberg | Getty Images

Germany will not sell any more shares in Commerzbank for the time being and the bank’s strategy is “geared towards independence,” the nation’s finance agency said on Friday.

The statement comes days after the Italian bank UniCredit announced it had bought a 9% stake in Commerzbank – from the German government as well as on the open market – and its chief executive said he wanted to explore a merger.

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The agency announced that at a meeting on Friday it decided it “will not, until further notice, sell any additional shares”.

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The many challenges facing Jay Powell as he tries to pull off a soft landing

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The many challenges facing Jay Powell as he tries to pull off a soft landing

Jay Powell argued this week that the Fed is not “behind” as it starts a cycle of interest rate cuts.

His main challenge in the coming months is to keep that narrative intact if the job market keeps cooling and the economy deteriorates.

“We don’t think we’re behind,” the Federal Reserve chairman said during a Wednesday press conference following a decision to cut rates for the first time since 2020. “We think this is timely, but I think you can take this as a sign of our commitment not to get behind.”

Some on Wall Street still have their doubts, arguing the jumbo 50 basis point move announced this week is an attempt to play catch up and that the path ahead for rate cuts may be too shallow.

Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the Federal Reserve in Washington, Wednesday, Sept. 18, 2024. (AP Photo/Ben Curtis)

Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the Federal Reserve in Washington on Wednesday. (AP Photo/Ben Curtis) (ASSOCIATED PRESS)

The central bank is being “reactionary” instead of proactive, said EY Chief Economist Gregory Daco, who pointed to the fact that Powell acknowledged the Fed might have cut rates in July if its policymakers had seen July’s employment figures first.

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Those figures, released just two days after the Fed’s July 31 meeting, showed that the unemployment rate had risen to 4.3%, stoking concerns the Fed had waited too long.

The rate dropped to 4.2% in August, but another rise in the coming months could bring those same fears back.

“It’s essential for Fed policymakers to adopt a robust forward-looking framework and abandon data dependency,” Daco said. “Unfortunately, that’s not the case so far.”

There remain “real risks” that a soft landing for the US economy may not be achieved especially if the labor market deteriorates, Nationwide chief economist Kathy Bostjancic told Yahoo Finance Thursday.

“Chair Powell is trying to get ahead of that…but there is always the risk they have been a little too slow in doing this.”

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Fed officials this week predicted the unemployment rate would tick up to 4.4% this year and hold at that level through next year.

Another hurdle for Powell is that Wall Street expects more future cuts than predicted by central bank policymakers, who this week estimated two more smaller cuts of 25 basis points through the rest of 2024 followed by four smaller cuts in 2025.

One Wall Street firm that came out with a more aggressive forecast was BofA Global Research, which raised its call for rate cuts during the remainder of this year to 75 basis points.

JPMorgan Chase chief economist Michael Feroli also said he is still expecting a faster pace of rate cuts than the Fed consensus.

Feroli expects a 50 basis point cut at the next meeting in early November contingent on further softening in the two jobs reports between now and then.

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Luke Tilley, chief economist for Wilmington Trust, said the Fed’s predicted path is too slow for an economy where the job market has normalized and inflation is likely to reach the Fed’s 2% target in the first quarter of 2025.

Tilley thus expects 200 basis points of cuts next year — double the Fed’s projection — and for rates to come down to neutral – the level that neither boosts nor slows growth — by next fall.

“It’s the longer-term path that matters more, and here the Fed is still a bit behind in that the median expectation is for just 100 bps of cuts next year,” he said.

But the Fed expects the economy to continue to show strength, aligning with their shallower rate cut predictions. Officials see the economy expanding at 2% this year, roughly inline with the 2.1% previously forecast, and coasting at that level the next few years.

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And the goal is to preserve that economic growth without re-stoking inflation. Officials predict inflation will end the year at 2.6%, down from 2.8% previously, before falling to 2.2% next year.

No matter what happens, Powell will also have to manage signs of internal division over the path ahead.

The Fed’s rate-setting committee is almost evenly split on the number of additional rate cuts expected this year, with seven policymakers favoring one additional 25 basis point rate cut before year end and nine members favoring 50 basis points of additional easing.

Two policymakers expect no more rate cuts.

That path implies several officials could have supported a 25 basis point cut this week but decided to err on the side of caution and not regret further deterioration in the job market.

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Fed governor Michelle Bowman even voted against the 50 basis point cut, arguing instead for a smaller quarter point cut. Her dissent was the first for the Fed since 2005.

“The Fed chair is now seen to have significant influence over the FOMC as he managed to convince most officials that front-loading cuts was optimal,” said EY’s economist Daco.

“The bargain is probably that policymakers may be more resistant to rapid easing at the next two policy meetings.”

Bostjancic, the chief economist at Nationwide, said she believes the Fed should cut another 50 basis points at its next meeting in November, even though that is not her firm’s forecast.

But to cut by another 50 “you would really have to have consensus” among Fed officials. “It’s a hurdle and you would have to have broad agreement.”

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Marcus & Millichap’s IPA Capital Markets Arranges $75 Million Financing for Midtown Manhattan Office-to-Residential Conversion Project

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Marcus & Millichap’s IPA Capital Markets Arranges  Million Financing for Midtown Manhattan Office-to-Residential Conversion Project

NEW YORK, September 19, 2024–(BUSINESS WIRE)–IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI), specializing in capital markets services for major private and institutional clients, has secured $75 million in acquisition financing for the former Pfizer headquarters in New York City. Located at 219 E 42nd St., the property will be combined with the adjacent building at 235 E 42nd St. and converted into a free-market, Class-A, luxury multifamily apartment building.

“When these two buildings are combined, it will add more than 800 units to the project totaling to over 1,400 units, making it the largest office-to-residential conversion in New York City’s history,” said Max Herzog, IPA Capital Markets.

The New York-based IPA Capital Markets team of Herzog, Marko Kazanjian, Andrew Cohen and Max Hulsh secured the financing with Northwind Group on behalf of David Werner Real Estate Investments and Metro Loft Management.

Herzog added: “The shortage of free-market multifamily units in Manhattan, coupled with David Werner’s acquisition of the property at a favorable basis and Metro Loft’s expertise in office-to-residential conversions helped our team generate significant interest from lenders in providing the acquisition bridge loan. This led to IPA Capital Markets managing a smooth and efficient financing process, ultimately securing strong terms for DWREI and Metro Loft.”

Located in Midtown East, the property will be converted from a 10-story, 291,000-gross-square-foot office building into a 29-story, approximately 540,000 square-foot, luxury multifamily rental property with 660 units ranging from studios to three-bedroom loft-style layouts.

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About IPA Capital Markets

IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit institutionalpropertyadvisors.com/capital-markets

About Marcus & Millichap, Inc. (NYSE: MMI)

Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20240919676375/en/

Contacts

Gina Relva, VP of Public Relations
Gina.Relva@MarcusMillichap.com

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