(New York)

There is a lot of excitement and anxiety about the investigation into Michael Cohen, president Trump’s personal lawyer. Many fear that investigators may get him to spill all details about his dealings with Trump. The media has been hyping the idea, with magazines like Esquire saying “We can safely speculate that Cohen knows everything: the money, the scams, the women, the Russians. All of it”. However, Bloomberg reports that Cohen is not the biggest fish investigators could catch and that there are many close to Trump who know much more about his affairs than Cohen. In reality, another lawyer named Jason Greenblatt, who worked as in-house counsel for the Trump organization for almost 20 years, probably knows much more.

FINSUM: He may not know the most, but it seems like Cohen probably knows enough to get Trump in even hotter water.

(New York)

If you are looking for a sign of how bank earnings might be doing, look no further than Goldman Sachs. Goldman has struggled over the last several quarters as its trading business has failed to generate much revenue because of the broad lack of volatility over the last couple of years. However, in a divergence from the norm, this quarter is supposed to be very strong because of the volatility that has hit markets. One of the big x-factors in the earnings will be how Goldman’s proprietary investments perform.

FINSUM: If Goldman does well it will bode well for the rest of the banks, especially because other trading divisions will likely see a pick up too.

(Washington)

Well, after a long wait (but perhaps one shorter than most expected), the SEC is ready to announce its framework for a new fiduciary rule this week. The SEC plans to hold a public meeting to discuss the three components of its new rule: “whether to propose new rules and forms for brokers and RIAs to summarize their relationships with clients; whether to establish a standard of conduct for brokers; and whether to provide an “interpretation” of the fiduciary responsibility of RIAs”. Advocates of the current DOL rule don’t like the approach the SEC is taking because it appears to be disclosure-based, something they think is insufficient to fulfil the need for fiduciary duty.

FINSUM: To be honest we did not think the industry would be able to have this much insight into the new SEC rule this quickly. Stay tuned.

(Washington)

The public spat between the president and the former director of the FBI went very public yesterday as a Comey interview about his firing was aired on national television last night. In the interview, Comey called Trump morally unfit to be president and said that Russia may be holding something over Trump that is affecting his behavior. Comey would not say whether he thought Trump firing him amounted to obstruction of justice, saying that would be up to investigators to decide. Trump fired back at Comey through a series of tweets.

FINSUM: Hard to say if this spat will amount to anything, but one thing is clear—it will not lessen the pressure Trump is under in regards to this investigation.

(New York)

Banks may be about to receive a huge gift from regulators in a move that shows just how much the deregulatory push of the Trump era might help the financial industry. The US Federal Reserve, which has significant oversight of the financial regulatory landscape has proposed changes which would loosen restrictions on banks’ balance sheets, allowing them to become more reliant on debt financing, thus having more leverage.

FINSUM: All the details of the new proposals are not clear yet, but this could be a significant boon for banks.