Perry is taking a position to Hillary Clinton’s left on financial reform, and pushing for a policy to break up big banks staunchly advocated by Sen. Elizabeth Warren (D-Mass.). ...Perry apparently advocated for the return of the Glass-Steagall Act, which established a firewall between traditional commercial banking and investment banking.Perry’s stance would put him further to the left on that particular point than Clinton, and squarely in the camp of Warren and Sen. Bernie Sanders (I-Vt.).In remarks delivered in New York, Perry did not mention Glass-Steagall by name, but floated among several policy proposals one that is practically identical. ...Some GOP lawmakers have signed on to the effort, but Perry’s remarks make him the first in a crowded GOP field to float the idea.
Breaking up the big banks one way or another has long been a goal of some Republican dissidents, notably commentator James Pethokoukis, who laid out the case in National Affairs. Pethokoukis and others appeal to solidly conservative principles. They want to eliminate the advantage that banks get from the government when investors see them as too big to fail. And when banks have to be rescued in a crisis, federal officials have power and discretion over the structure of those companies going forward.
Perry's speech was unequivocally conservative, too. For example, he wants to limit the power of the Consumer Financial Protection Bureau, which Warren helped create, by giving lawmakers control over its budget. His comments on Glass-Steagall show the potential for cooperation between dissenters in both parties.
What's in Wonkbook: 1) Cop indicted in shooting 2) Opinions, including Salam on Clinton 3) Her complicated relationship with a big Swiss bank, and more
Map of the day: In Mississippi and New Mexico, about a third of children are living in poverty. The rate is also high across the rest of the South and Southwest. Emily Badger and Christopher Ingraham in The Washington Post.
1. Top story: Officer indicted for murder
A white Cincinnati cop has been indicted in a black man's shooting death. "A University of Cincinnati police officer was indicted Wednesday on a murder charge in what a prosecutor called 'a senseless, asinine shooting' of an unarmed man during a minor traffic stop. ... The death of Mr. Dubose, who was black, at the hands of Officer Tensing, who is white, joined a string of recent cases — in places including Staten Island; Cleveland; Baltimore; North Charleston, S.C.; and Ferguson, Mo., among others — that have raised hard questions about law enforcement’s use of force and the role of race in policing. " Kevin Williams, Wesley Lowery and Mark Berman in The Washington Post.
Number of the day: 558. That's how many people have been shot and killed by police so far this year. The Washington Post.
Body-camera footage shows what happened. "After the two men briefly exchange words, DuBose's vehicle is seen to roll forward. Tensing then shoots him in the head. ... Over the past 12 months, experts and activists have called for the nationwide adoption of body cameras by police forces. They have acquired wide support, including from Hillary Clinton and the family of Michael Brown, the 18-year old man who was killed by a police officer in Ferguson, Missouri, last year. But the adoption of body cameras is rife with complexities and privacy concerns, including who gets to view a video and whether they are a matter of public record." Robinson Meyer in The Atlantic.
Primary source: The footage. (Warning: This footage is graphic.)
BLOW: The footage shows a disturbing attitude toward human life. "To watch that video is to be witness to an execution. What kind of person takes another person’s life so cavalierly? How little must an officer think of the person at the other end of the barrel to shoot him in the head when, per the video, there appears to be no threat? ... Body cameras must be made mandatory countrywide. That will help with investigations after the fact, and may indeed alter behavior, but there is no full equipment fix for a personnel problem. What is happening between police officers and people of color in this country is a structural issue and must be deconstructed as such. Cameras won’t change basic character." The New York Times.
2. Top opinions
Shell shouldn't be allowed to drill in the Chukchi Sea. "The company has worked hard to convince Interior Department officials that it has overcome the sloppiness that led to a series of mishaps during its first attempt in 2012, including the grounding of its drilling rig. And yet it's not enough. Shell's ineptitude on its first try, after it had given the public and the federal government ringing assurances about how prepared it was, earned the public's distrust. As that experience illustrated, Shell didn't fully understand the extraordinary challenges of drilling in these far-northern seas, which are prone to ferocious storms and which quickly become strewn with ice floes in the fall and winter. Even with Shell's overhauling of its operations, a federal report earlier this year estimated a 75% chance of at least one large oil spill over the life of the 77-year lease," writes the editorial board of the Los Angeles Times.
Could Congress end the sugar scandal? "Americans pay nearly twice as much per pound as foreigners do for sugar, thanks to U.S. import restrictions and subsidies. We’ve tilted at this corporate welfare for decades, but new political forces are aligning to take another run. The absurdity of the federal sugar program is legendary. ... Growers of other crops had their subsidies cut in the last farm bill, and many are asking why sugar gets a pass. Last month the Corn Refiners Association, which produces high-fructose corn syrup, began lobbying on Capitol Hill for a level playing field with sugar. They’re allied with Republican tea party Members of Congress who dislike business subsidies," writes the editorial board of The Wall Street Journal.
SALAM: Is Clinton right that corporations are letting America down? "The basic concern, as I understand it, is that in the age of activist shareholders, publicly held companies are not investing enough in increasing their productivity or in developing innovative new products. ... A short-term focus on earnings within a given firm might be a good thing if it frees up resources that can be invested in other business enterprises, including start-ups. Many large, publicly held companies, such as Microsoft, are notorious for overinvesting in doomed efforts... The correlations of investment with profit and borrowing have weakened. Yet this is exactly what we’d expect to see happen if capital were flowing more freely to firms offering more and better investment opportunities. As access to capital markets has improved, firms have identified other, more attractive sources of financing, and so the correlation of investment with profit has declined." National Review.
3. In case you missed it
The Federal Reserve is feeling all right about things. "The Federal Reserve offered a slightly more upbeat assessment of the economy but provided little insight into when it will raise its benchmark interest rate for the first time in nearly a decade. Fed officials voted unanimously to keep the target rate at zero for now, after wrapping up their regular two-day policy-setting meeting in Washington on Wednesday afternoon. In a carefully worded statement, the central bank noted that the economy has expanded 'moderately.' It pointed to solid job gains and lower unemployment as signs that the labor market has improved, adding that underemployment has also diminished. Perhaps most important, the Fed characterized the risks to its outlook for the economy as 'nearly balanced' — the same description it used after its previous meeting." Ylan Q. Mui in The Washington Post.
The Obama administration is getting ready to announce its big climate-change policy. "The final version of President Obama’s signature climate change policy is expected to extend an earlier timeline for states to significantly cut planet-warming pollution from power plants, according to people familiar with the plan. If enacted, the climate change plan, the final version of which is expected to be unveiled as early as Monday, could stand as the most significant action ever taken by an American president to curb global warming. But some environmental groups have cautioned that a later deadline for states to comply could make it tougher for the United States to meet Mr. Obama’s climate change pledges on the world stage. ... The rules take aim at coal-fired power plants, the largest source of greenhouse emissions, and are intended to spur a transformation of the nation’s power sector from fossil fuels to renewable sources such as wind and solar." Coral Davenport in The New York Times.
Clinton helped out a big Swiss bank when the IRS was cracking down. "The Internal Revenue Service was suing UBS AG to get the identities of Americans with secret accounts. ... Within months, Mrs. Clinton announced a tentative legal settlement—an unusual intervention by the top U.S. diplomat. UBS ultimately turned over information on 4,450 accounts, a fraction of the 52,000 sought by the IRS, an outcome that drew criticism from some lawmakers who wanted a more extensive crackdown. From that point on, UBS’s engagement with the Clinton family’s charitable organization increased. ... The bank also joined the Clinton Foundation to launch entrepreneurship and inner-city loan programs, through which it lent $32 million. And it paid former president Bill Clinton $1.5 million to participate in a series of question-and-answer sessions with UBS Wealth Management Chief Executive Bob McCann, making UBS his biggest single corporate source of speech income disclosed since he left the White House. There is no evidence of any link between Mrs. Clinton’s involvement in the case and the bank’s donations to the Bill, Hillary and Chelsea Clinton Foundation, or its hiring of Mr. Clinton. But her involvement with UBS is a prime example of how the Clintons’ private and political activities overlap." James V. Grimaldi and Rebecca Ballhaus in The Wall Street Journal.