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Trump’s recruitment of watchdog chiefs impeded by talk of regulatory cuts

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Trump’s recruitment of watchdog chiefs impeded by talk of regulatory cuts

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Republican enthusiasm for culling and combining the many US banking regulators is complicating efforts by the incoming administration of Donald Trump to find heads for those watchdogs.

The problem is particularly acute for the Consumer Financial Protection Bureau, which focuses on the way lenders treat customers. The CFPB has been a target of hostility from Republicans since its creation after the 2008 financial crisis. A number of experienced candidates have demurred when contacted about the position, people familiar with the search said.

“Republicans think the CFPB is unconstitutional, and even if you do make progress in protecting middle-class and low income Americans, the Democrats will never give you credit because you’re wearing the wrong colour jersey,” said a former senior financial regulator who is not interested in the job.

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Recruiting issues are becoming more serious because of growing ferment around consolidating banking regulatory and supervisory responsibilities that are currently spread among the US Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.

Some potential candidates have been interviewed by Elon Musk and Vivek Ramaswamy, the bosses of Trump’s newly created advisory committee, the Department of Government Efficiency (Doge), and have been asked about streamlining regulation, people close to the process said.

Musk has called for eliminating the CFPB and Ramaswamy asserted last week on social media that it was “one of the easiest agencies to shut down”. The Wall Street Journal reported that some regulatory candidates have been asked whether it would be possible to eliminate the FDIC, which has protected bank depositors since the Great Depression.

The Trump transition team’s questions, combined with enthusiasm from the Republicans due to run key committees on Capitol Hill for lightening the regulatory load, could herald the first serious effort to reshape the guardrails for the banking industry since the 2010 Dodd-Frank law.

“I think the Trump team might be serious about this,” said Bill Isaac, a former FDIC chair, adding that he has talked to leading Capitol Hill players about his proposal to merge the OCC and the supervisory functions of the Fed and FDIC into a new regulator. “The system is broken.”

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Tim Scott, the Republican in line to chair the Senate Banking Committee, has concerns with the current structure of the US’s bank regulatory system, his spokesman said, but did not specify whether he supported consolidating banking regulators. Scott “looks forward to working with the incoming Trump administration to find solutions to streamline regulation, reduce red tape, and increase efficiency while ensuring the continued stability of our financial system.”

But experienced Washington hands point out that multiple prior attempts to consolidate the patchwork of banking regulators into a single super-watchdog have failed. In 2010, Republicans provided crucial votes to help kill the idea.

“Most regulatory scholars support some form of consolidation among bank regulators in the US, but every attempt at doing this has failed. After every financial crisis, there is more regulation and more regulators than there were before,” said Aaron Klein, a senior fellow at Brookings and former Treasury official under Barack Obama.

During Trump’s first term, the acting head of the CFPB Mick Mulvaney at one point refused to request any funding for the watchdog, but it eventually resumed normal operations.

“Congress is needed for any consequential structural changes and it is incredibly difficult to envision a scenario where this issue makes it on the agenda, let alone gets the Democratic support necessary for enactment,” said Isaac Boltansky, managing director at BTIG.

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Investor groups and former regulators have expressed alarm at the prospect of weakening the FDIC, noting that it is well known and popular with consumers, in part because most banks tout its deposit insurance as part of their advertising.

“FDIC has a perfect record of protecting insured deposits for over 90 years. Strong consumer confidence in the brand, providing stability during crises,” tweeted Sheila Bair, a former FDIC chair.

Patrick Woodall, managing director for policy at Americans for Financial Reform, said: “The FDIC stamp of approval has safeguarded depositors — and confidence in the banking industry — for nearly a century, while the CFPB has a strong track record of standing up for the little guy. Billionaire ideas about consumer protection and financial stability will do nothing for everyday people.”

Even Isaac said he opposes eliminating the FDIC as an independent agency, because of its emergency bank takeover responsibilities.

“I don’t think that makes any sense,” he said. The idea is to have the FDIC be an independent, bipartisan agency and the Treasury is anything but.”

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The Trump transition team did not reply to a request for comment.

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Wheelchair curler Steve Emt’s path from drunk driver to three-time Paralympian

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Wheelchair curler Steve Emt’s path from drunk driver to three-time Paralympian

American Steve Emt competes in Sunday’s mixed doubles match against Italy, which the U.S. won.

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Anyone watching the Winter Paralympics has probably taken note of Steve Emt, who — along with Laura Dwyer — is representing Team USA in the Games’ first-ever mixed doubles event.

Their performance is one thing: The pair notched three dramatic, back-to-back wins in the round-robin tournament to reach the semifinals, marking the first time the U.S. has qualified for a medal round in wheelchair curling since the 2010 Paralympics.

After losing to Korea in the semifinals, Emt and Dwyer will face Latvia in the bronze medal match on Tuesday, in the hopes of winning the U.S. its first Paralympic medal in wheelchair curling.

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But it’s their teamwork and attitude on ice that really set them apart. Emt, in particular, has charmed the internet, with his booming baritone delivering a steady stream of encouragement to his doubles partner and demands to the granite stones they’re sliding (“curl!” “sit!”).

“I have three older siblings. I was always on the basketball court getting beat up by them, so I had to assert myself on the court, around the kitchen table, everything,” he said when asked about his deep voice this week.

Steve Emt and Laura Dwyer celebrate during a match this week.

Steve Emt and Laura Dwyer have made sure to celebrate their wins, of which there have been many throughout this wheelchair curling mixed doubles round-robin tournament.

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While Emt, 56, is competing in a new event, he’s no stranger to the sport: The 10-time national champion and three-time Paralympian is the most decorated Paralympic curler in U.S. history.

But he didn’t know what curling was until he got recruited off the street just over a decade ago.

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Emt, who is 6 feet, 5 inches tall, was enjoying a day in Cape Cod, Mass., in 2013 when a stranger with slicked-back hair approached and asked if he was local. Emt replied that he lived in Connecticut and suspiciously asked why.

“He said, ‘Well, I train with the Paralympic rowing team here in the Cape. I saw you pushing up the hill back there. With your build, I could make you an Olympian in a year,’” Emt recalled, referring to his wheelchair. “And I heard ‘Olympics,’ I’m like: Let’s go. What the hell is curling?”

After their conversation, Emt drove home and did some research, confirming that curling was not related to weightlifting, as he originally suspected.

“I went back two weeks later and I threw my first stone, and it just bit me,” he said.

Before long, Emt was making the two-and-a-half-hour drive to Massachusetts to spend the weekend training with that stranger-turned-coach, Tony Colacchio. He made the U.S. wheelchair curling team in 2014 and competed at his first world championship in 2015. Emt made his Paralympic debut in Pyeongchang in 2018, five years after that fateful encounter.

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Emt, speaking to reporters in October, said the sport of curling has changed him as a person, mellowing him out. But the existence of the sport as a competitive outlet for athletes with disabilities changed his life.

Emt had been an all-star high school athlete, an Army West Point cadet and a UConn basketball walk-on before a drunk driving incident paralyzed him from the waist down at 25 years old.

“I’m a jock … I need to compete, and I didn’t have anything going on in my life,” Emt said. “Seventeen years after my crash, I had a hole, and then [Colacchio] came along and stalked me into the sport.”

By that point, Emt had spent years working as a middle school math teacher, a high school basketball coach and a motivational speaker. The latter has been his full-time job for almost a decade, taking him to over 100 schools across the country each year. He tells those teenagers about the chance Colacchio took on him, encouraging them to “be a Tony.”

“Go sit with that kid at lunch that’s sitting alone … smile [at] somebody in a hallway, get your heads out of your phones, get your heads out of the sand,” he continued. “We’re all going through something … and a simple ‘hello’ or ‘good morning,’ it could change their day. It could change somebody’s life.”

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Why Emt now shares his story 

This is the third Paralympics for Emt, who is already eyeing Salt Lake City 20

This is the third Paralympics for Emt, who is already eyeing Salt Lake City 2034.

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Emt wasn’t always so willing to open up. For the first half a year after his 1995 crash, he told everyone a deer had run in front of his car rather than admit he had gotten behind the wheel drunk.

“I was lying to myself, I was lying to everybody around me,” he said. “I didn’t want kids to look at me in my hometown, in the state, and everyone around the country, as a drunk driver. I wanted them to look at me as a stud athlete and a great person.”

Emt had been a “stud athlete”: His talents in high school basketball, soccer and baseball made him a star in his hometown of Hebron, Conn., and earned him a spot on the basketball team at West Point.

But he dropped out two years later, after his father’s sudden death from a heart attack. He went home to Connecticut and eventually enrolled at UConn, where he walked on to its storied basketball team, joining future NBA greats like Donyell Marshall. Emt says, with a chuckle, that he had 38.7 seconds of playing time in his two years.

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Emt was wearing his Big East championship jacket the night of his 1995 accident, which he says left him for dead on the side of the highway. When he woke up from a coma a few days later, he learned he would never walk again.

And he didn’t want to tell people why, until a newspaper reporter approached him six months later wanting to tell his story — and encouraged him to be honest. He said the opportunity to “come clean” helped him accept what he’d done and forgive himself.

“That’s my label: Yeah I’m a curler, yeah I’m a speaker, yeah I’m a drunk driver,” he said. “I’m in a wheelchair because of a drunk driving crash, and I want you to know it and I want you to learn from me.”

Emt first got into motivational speaking about eight months after his accident, and has been doing it ever since. He calls it his therapy.

He says that and curling — which is about shaking hands with competitors instead of smack-talking them — has helped him slow down and appreciate the little things. Relocating to Wisconsin and the chiller pace of Midwest life has also helped. And he says he cherishes the platform that curling has given him.

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“I want people to know: ‘Hey, when you’re ready to talk, I’m here for you.’ This is what I do, from my speaking to my curling, whatever it is, there are so many opportunities to be successful again,” he said. “When you wake up and you’re told you’re never going to walk again, it’s like, what do I do now? … And I just want people to know that there are so many avenues out there, so many things to do.”

Emt, the oldest Paralympian on Team USA, originally aimed to make it to three Games. But he’s now eyeing even more, as he’d like to compete on home turf in Salt Lake City in 2034 (two Games away).

“I’m going to be like 90 years old competing at the Paralympics,” he laughed.

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Map: 2.3-Magnitude Earthquake Reported North of New York City

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Map: 2.3-Magnitude Earthquake Reported North of New York City

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Eastern. The New York Times

A minor, 2.3-magnitude earthquake struck about 12 miles north of New York City on Tuesday, according to the United States Geological Survey.

The temblor happened at 10:17 a.m. Eastern in Sleepy Hollow, N.Y., data from the agency shows.

The Westchester County emergency services department said in a statement that it had not received any reports of damage.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

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Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Eastern. Shake data is as of Tuesday, March 10 at 10:30 a.m. Eastern. Aftershocks data is as of Tuesday, March 10 at 2:18 p.m. Eastern.

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Ed Martin, outspoken Justice Department lawyer, is formally accused of ethical violations | CNN Politics

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Ed Martin, outspoken Justice Department lawyer, is formally accused of ethical violations | CNN Politics

Ed Martin, an outspoken Trump administration official, is facing attorney discipline proceedings in Washington, DC, for a letter he sent to Georgetown Law about its diversity programs, the district’s professional conduct investigator announced on Tuesday.

Martin is formally accused of violating his ethical codes as an attorney for telling Georgetown Law’s dean last year that his Justice Department office wouldn’t hire students because of the school’s diversity, inclusion and equity initiatives programs, according to the filing from Hamilton Fox, the disciplinary counsel for DC who acts as a quasi-prosecutor on attorney discipline matters.

Unlike unsolicited complaints, Fox’s formal disciplinary complaint kicks off professional conduct proceedings for Martin in which he will need to respond and could be sanctioned or ultimately lose his law license.

Fox’s announcement on Tuesday marks the first major bar discipline proceeding against a high-profile administration official or attorney supporting President Donald Trump during Trump’s second term. Several Trump lawyers faced disciplinary proceedings after the efforts to overturn Joe Biden’s victory in the 2020 presidential election, including Rudy Giuliani, who lost his law license.

“Acting in his official capacity and speaking on behalf of the government, he used coercion to punish or suppress a disfavored viewpoint, the teaching and promotion of ‘DEI,’” Fox wrote in the complaint. “He demanded that Georgetown Law relinquish its free speech and religious rights in order to continue to obtain a benefit, employment opportunities for its students.”

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Martin was removed from the top prosecutor job in DC after senators made clear he would not be confirmed to the role, but has remained at the Justice Department in several roles, including as pardon attorney.

“Mr. Martin knew or should have known that, as a government official, his conduct violated the First and Fifth Amendments to the Constitution of the United States,” Fox wrote.

Martin is being represented by a Justice Department attorney, a source told CNN.

A spokesperson for DOJ attacked Fox’s complaint. “The DC bar’s attempt to target and punish those serving President Trump while refusing to investigate or act against actual ethical violations that were committed by Biden and Obama administration attorneys is a clear indication of this partisan organization’s agenda,” DOJ said.

Martin had sent the letter to Georgetown Law while serving temporarily as US attorney for DC, a prominent Justice Department position, and told the school his federal prosecutors’ office wouldn’t hire Georgetown’s law school students. It came at a time when the Trump administration was beginning to crack down on universities for their DEI efforts.

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In his letter, Martin claimed a whistleblower told him that the school was teaching and promoting DEI.

Martin also violated attorney ethics rules by contacting judges of the DC court directly, Fox alleged, rather than going through official channels, once he was informed he was under investigation for his professional conduct. The DC Court of Appeals ultimately signs off on attorney discipline findings.

Early last year, Fox’s office had formally asked Martin to respond to a complaint it received by a retired judge regarding the Georgetown letter.

Martin instead wrote to the judges on the DC court complaining about Fox.

“In that letter, he stated that he would not be responding to Disciplinary Counsel’s inquiry, complained about Disciplinary Counsel’s ‘uneven behavior,’ and requested a ‘face-to-face meeting with all of you to discuss this matter and find a way forward,’” Fox wrote.

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“He copied the White House Counsel ‘for informational purposes because of the importance of getting this issue addressed,’” Fox said.

The top judge in the DC courts told Martin the court wouldn’t meet with him about the disciplinary matter and that he would need to follow procedure.

With Fox’s complaint, there will now be several steps ahead of bar discipline authorities looking at Martin’s action, and Fox didn’t specify how Martin should be reprimanded or punished if the discipline boards and the court ultimately determine he violated his ethical codes.

Spokespeople for the Justice Department didn’t immediately respond to requests for comment on Tuesday morning.

In recent days, Attorney General Pam Bondi announced her office would have a more powerful role in reviewing attorney discipline complaints against Justice Department attorneys, potentially setting up an approach that could keep the department at odds with the bar on behalf of DOJ attorneys facing their own individual disciplinary proceedings.

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CNN’s Paula Reid contributed to this report.

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