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Speaker 1: Live from our nation's CALEA. This budget thing is going

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Speaker 1: to do nothing space sports. I still think it's interesting

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Speaker 1: President Trump not playing his cards yet Headlines Policy and Politics,

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Speaker 1: A lighting sound on with Kevin's related the insiders, the influencers,

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Speaker 1: the insiders. I would rather see a congressional solution. It's

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Speaker 1: part of my DNA. The Senate map in looks a

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Speaker 1: lot different than it looked in. You really have a

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Speaker 1: divide within Team Trump. The President has to do exactly

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Speaker 1: what people seven here to do, which is to get

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Speaker 1: it done. He's sound on with Kevin's related on Bloomberg

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Speaker 1: nine one and one seven f M h D two Boltemore.

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Speaker 1: Senator Elizabeth Warren says, it's quote about damn time end

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Speaker 1: quote after Wells Fargo CEO Tim Sloan steps down. What

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Speaker 1: does that mean for the big bank and what does

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Speaker 1: it mean for populists moving forward? Big day on the

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Speaker 1: trade front. An exclusive comment from Larry Cudlow, the President's

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Speaker 1: chief economic advisor, who told me at the x Board

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Speaker 1: in Board Bank Annual Conference in Washington, d C. That

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Speaker 1: some tariffs might come off even if certain tariffs stay

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Speaker 1: on as an enforcement mechanism for those US China trade talks.

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Speaker 1: All of that plus more fallout from the Mueller investigation.

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Speaker 1: We have an all star panel joining us, Sarah McGregor,

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Speaker 1: Bloomberg News Economic policy team leader, and Adam Hodge, a

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Speaker 1: vice president at s k D Nickerbocker and former d

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Speaker 1: n C communications director. But before we get into the

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Speaker 1: latest politics and policy, opening day unless you're Tim Sloan,

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Speaker 1: in which case it's your last day on the job

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Speaker 1: for the Wells Fargo CEO and Senator Elizabeth Warren, the

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Speaker 1: presidential candidate, Democrat from Massachusetts, saying, quote, it's about damn

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Speaker 1: time those headlines crossing the Bloomberg terminal just within the

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Speaker 1: last hour and a half that Tim Sloan, uh the

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Speaker 1: former now CEO of Wells Fargo, after those contentious hearings

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Speaker 1: on Capitol Hill before the House Financial Services Committee the

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Speaker 1: other week, ultimately deciding to step down. We're gonna have

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Speaker 1: much more on that coming up later on in the program.

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Speaker 1: But here to help us through trade talks. There were

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Speaker 1: a ton of new trade developments today. Adam Hodge, he

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Speaker 1: is a friend of the program, a vice president at

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Speaker 1: s k D Nickerbocker, a communications shop here in Washington,

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Speaker 1: d C. He's a former d n C communications director

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Speaker 1: for the Democratic National Committee and as senior Treasury Department

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Speaker 1: official during the Obama administration, and my good friend and

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Speaker 1: colleague Sarah McGregor, Bloomberg News Economic Policy team leader Sarah

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Speaker 1: so I was actually hanging out all day at the

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Speaker 1: Export Import Bank Annual Conference at the Omni across Town

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Speaker 1: here in Washington, d C. And it was pretty striking

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Speaker 1: because House Financial Services Committee Chairwoman Maxine Waters agreed, you

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Speaker 1: didn't hear me wrong, agreed with Peter Navarro. Okay, So

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Speaker 1: they were all keynote speakers, and Larry Cudler was there,

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Speaker 1: and they said that they want to see the Export

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Speaker 1: Import Bank reauthorized. This was like everybody's, well, the Tea

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Speaker 1: Party's favorite political pan data for years, and now the administration,

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Speaker 1: the Trump administration says that they're going to get in

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Speaker 1: line with it. Its nickname is the Bank of Boeing,

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Speaker 1: which keyword I think really has a lot to do

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Speaker 1: with these US China trade talks. And I caught up

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Speaker 1: with Larry Cudlow after he keynoted there, and I asked

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Speaker 1: him about how trade talks are going with China, because

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Speaker 1: remember Treasury Secretary Stephen manution and US Trade Representative Bob

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Speaker 1: Leightheiser are over in China as we speak, negotiating this deal.

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Speaker 1: I said, Larry, did you talk to Secretary Manution? Have

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Speaker 1: you talked to Representative Lightheiser? He said, Kevin, they just

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Speaker 1: finished dinner. The time zone is so crazy. There is asleep.

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Speaker 1: I'm not gonna wake them up, but that he does

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Speaker 1: anticipate that these talks will be trending in the right direction,

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Speaker 1: and then you know, you know this, Sarah. I mean,

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Speaker 1: there's so much pressure when er President Trump and President

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Speaker 1: shi Jing Ping of China gonna meet. Is it gonna

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Speaker 1: be in early May? Is it going to be down

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Speaker 1: at Maral Lago? I asked him about it. Here's what

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Speaker 1: Larry Cudlow told me. Take a listen. This is not

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Speaker 1: a time driven this is a policy enforcement driven deal.

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Speaker 1: So things have to be done just right. And as

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Speaker 1: President said, it has to be a great deal. So

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Speaker 1: no timetable Sarah McGregor, In terms of the U. S.

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Speaker 1: China trade talks, the mixed signals that we're getting from

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Speaker 1: the Trump administration on whether there's going to be a

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Speaker 1: deal or not, it's just super confusing right now. You know,

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Speaker 1: we hear over and over. Progress is being made there,

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Speaker 1: They're getting closer to some sort of agreement. We've even

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Speaker 1: heard the Trump administration talk about perhaps having like a

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Speaker 1: late March which is obviously not going to happen now,

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Speaker 1: late April summit, about with President Jing ping to finalize

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Speaker 1: this deal, to sign this deal. But where is the deal?

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Speaker 1: Where is the agreement? You know, the Trump administration keeps

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Speaker 1: talking about the fact that they need reforms on intellectual

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Speaker 1: property practices, they need China to agree, which where Larry

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Speaker 1: Cudlo said today the fact in the agreement that the

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Speaker 1: US can impose tariffs on China if they break the

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Speaker 1: rules of this trade deal, but China needs to agree

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Speaker 1: not to impose counter tariffs on the US in that case.

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Speaker 1: I mean, these are hard issues for China to agree to.

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Speaker 1: It's hard to imagine that they will. And for the

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Speaker 1: US to keep saying we're making progress and we're almost

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Speaker 1: there with a deal seems disingenuous at this point. So

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Speaker 1: I was really struck by this. I'm glad you brought

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Speaker 1: this up, because the big thing from the or one

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Speaker 1: of the big contentious areas from the business community standpoint,

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Speaker 1: are tariffs. The business community and business, Republicans and even

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Speaker 1: Democrats they don't like tariffs. And so President Trump has

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Speaker 1: said he's tariff man, that he's going to have some

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Speaker 1: of these tariffs left in places a point of leverage

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Speaker 1: in terms of the negotiations. And Adam Hodge, a former

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Speaker 1: Treasury Department official in the cop shop during the Obama administration,

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Speaker 1: are tariffs a good enforcement mechanism if you're trying to

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Speaker 1: see if the Chinese are going to follow through on

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Speaker 1: a on a particular agreement and terms of you as

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Speaker 1: China trade agreements. But I think it's it's proven to

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Speaker 1: be a pretty poor tools so far. I don't think

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Speaker 1: you've seen much action from from China and they don't

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Speaker 1: really have much, uh you know, huge incentive to negotiate

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Speaker 1: um fully with with the administration. And it's also bad politics.

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Speaker 1: Let's let's be clear. This was really tough um for

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Speaker 1: a lot of Republican candidates who were on the ballot

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Speaker 1: in and you can be sure that Democrats running for

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Speaker 1: president and Democrats running again are going to hit hard

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Speaker 1: on the tariffs. Is just a bad economic and and

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Speaker 1: and political approach for for the the the country. Um,

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Speaker 1: it's good that they're at the table. It's good that

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Speaker 1: they're having a real conversation. Is a real question though,

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Speaker 1: about whether they're going to actually come up with a

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Speaker 1: deal that actually moved the needle. So I was struck

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Speaker 1: by what Larry Cudlow had to say in terms of

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Speaker 1: tariffs as a whole, because President Trump the other week

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Speaker 1: did say that potentially those tariffs would be in four

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Speaker 1: Smith mechanism of two in place for the US China

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Speaker 1: trade deal. But Larry Cudlow, the Chairman of the National

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Speaker 1: Economic Council at the White House, had this to say

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Speaker 1: about whether some tariffs might be off the table. Here is,

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Speaker 1: we have to see what the track record is and

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Speaker 1: we're not going to give up our leverage. However, just

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Speaker 1: to clarify that doesn't necessary necessarily mean all the tariffs

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Speaker 1: will be kept in place. Some of the tariffs will

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Speaker 1: be kept there. So, Sarah, so your point of confusion,

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Speaker 1: No one knows which tariffs. But it really kind of

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Speaker 1: if you're a lobbyist in town on K Street, I mean,

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Speaker 1: it kind of is is open season in terms of

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Speaker 1: in terms of lobbying lawmakers to try to get some

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Speaker 1: of these terrors or exemptions from tariffs off of the table. Absolutely,

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Speaker 1: And I think it's interesting what you brought up the

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Speaker 1: fact that the business community, a lot of politicians lobbied

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Speaker 1: hard against these tariffs who begin with to be to

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Speaker 1: be put in place, but now, especially in the case

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Speaker 1: of China, now that they're in place, I think there's

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Speaker 1: a recognition that it really has brought them to the table.

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Speaker 1: Whether it was right or wrong, whether you know, some

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Speaker 1: people do think they need to be removed. And so

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Speaker 1: you hear a little bit of quietness now from people

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Speaker 1: about the actual tariffs because I think they do feel like, Okay,

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Speaker 1: wait a second, they are at the table, let's see

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Speaker 1: what we get now out of these talks, and so um,

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Speaker 1: you know, I think the overall there is definitely a

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Speaker 1: push to have these removed as part of a trade deal.

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Speaker 1: All right. Coming up, we talked much more on the

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Speaker 1: congressional front, more fallout for the Mueller investigation. Following our

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Speaker 1: exclusive interview with Donald Trump Jr. Yesterday, we talked about well,

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Speaker 1: well Democrats have any leverage in getting the Mueller report released,

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Speaker 1: and also coming up, my conversation with House Financial Services

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Speaker 1: Committee Chairwoman Maxine Waters, a Democrat from California. You can

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Speaker 1: download the sound on podcast on Apple iTunes, at Bloomberg

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Speaker 1: dot com, or by downloading the Bloomberg Business app. You

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Speaker 1: can also find me, as well as my colleagues on

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Speaker 1: Radio dot com and I Heart Radio. Adam Hodge stays,

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Speaker 1: Sarah McGregor stays, and I stay. I'm Kevin CURRELLI my guests,

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Speaker 1: I'm Kevin Currellian. It's opening Day. I hope everybody gets

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Speaker 1: to watch some baseball. You're listening to Bloomberg. This is

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Speaker 1: Sound On with Kevin's related on Bloomberg and f m

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Speaker 1: h D two Baltimore. President Trump saying this afternoon that

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Speaker 1: he is going to fund the Special Olympics. He is

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Speaker 1: going to fund the Special Olympics that was just brought

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Speaker 1: out within the last couple of hours. Meanwhile, the Democratic

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Speaker 1: controlled House of Representatives passing a piece of legislation that

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Speaker 1: would oppose the President's restrictions on transgender Americans serving in

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Speaker 1: the US military. That policy from President Trump sets to

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Speaker 1: go into effect on April twelve. Congressman Joe Kennedy, a

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Speaker 1: Democrat from Massachusetts. I interviewed him earlier today on Bloomberg Television.

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Speaker 1: You can log on to Bloomberg TV dot com or

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Speaker 1: check it out on the Bloomberg terminal to see that interview.

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Speaker 1: An interesting fact for transgender Americans, the number one employer

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Speaker 1: is actually the US military. I'm Kevin Surlei, chief Washington

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Speaker 1: correspondent for Bloomberg TV and Bloomberg Radio. My guest with

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Speaker 1: me are Adam Hodge. He has a vice president at

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Speaker 1: s k D Nickerbocker and former d m C communications director.

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Speaker 1: He also worked at the Obama administration's Treasury Department. Sarah

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Speaker 1: McGregor is Bloomberg News Economic Policy team leader. The fallout

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Speaker 1: Sarah from the Mueller investigation now day three, I guess removed.

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Speaker 1: But the pressure keeps mounting on Democrats from Democrats to

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Speaker 1: get this Muller investigation somehow released to the public. But

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Speaker 1: I'm hard pressed to find really what tools they can

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Speaker 1: utilized to get it released. Yeah, I mean, I think

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Speaker 1: there is some some pressure, and I think even you know,

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Speaker 1: American citizens want to know right now, what was actually

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Speaker 1: in that report, What were the underlying document It's the interviews,

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Speaker 1: some of the stuff that was dug up that you know,

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Speaker 1: basically cleared the names of a lot of people who

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Speaker 1: we've heard for for months now might be guilty of

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Speaker 1: some pretty pretty big deals. So, um, you know, I

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Speaker 1: guess there can be hearings and and there can be

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Speaker 1: public pressure brought to bear on this, but it'll be

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Speaker 1: interesting to see if they get released, and obviously if

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Speaker 1: they do, what's what's going on in there? Yeah. I

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Speaker 1: think one of the interesting things about this and a

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Speaker 1: lot of the media speculation around the first part of

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Speaker 1: the report, UM, as as if the whole report was released,

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Speaker 1: we actually got four pages. It was four pages of

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Speaker 1: bars report on the Malla reports, so we really don't

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Speaker 1: know what's in it. You know. The members of Congress.

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Speaker 1: Adam schiff On had a big hearing today where he

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Speaker 1: had a tick through the laundry list of of complaints

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Speaker 1: that we know that that were raised. I'm sure you're

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Speaker 1: gonna see subpoenas from both the House Intel Committee, UM

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Speaker 1: and other uh Maxine Waters, I mean, we're gonna hear

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Speaker 1: from coming up later on in the program, I interviewed

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Speaker 1: her today, chairwoman of the House Financial Services Committee. She

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Speaker 1: says subpoenas are still very much on the table from

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Speaker 1: the Trump political orbit, particularly as it pertains to Deutsche Bank. Yeah,

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Speaker 1: and I think the political equation is gonna come up

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Speaker 1: for a lot of Republicans is whether they can hold

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Speaker 1: the water and keeping this report uh quiet and keep

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Speaker 1: me behind closed doors, because I think you're going to

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Speaker 1: see a big part of the American people. We already

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Speaker 1: saw some polls this week of Americans want to see

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Speaker 1: the full report. They want to know what's what was

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Speaker 1: actually included. Um, that's I think we're the politics ultimately

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Speaker 1: hit the road. But Adam, do you think it might

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Speaker 1: be political fools gold for Democrats to keep hammering on this,

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Speaker 1: especially when you know there's the cycle. It almost feels

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Speaker 1: I mean, look, they're two very different things, but the

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Speaker 1: strategic nous of it, that's not a work of it.

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Speaker 1: The strategy behind it is what I should say. Uh.

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Speaker 1: It kind of feels like when Republicans kept hammering on

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Speaker 1: is it smart politics to keep going with this, uh

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Speaker 1: and hammering this when you know there was no conspiracy.

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Speaker 1: So I think there's sort of two political um things

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Speaker 1: where the members of Congress have to try to hold

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Speaker 1: the administration accountable, but the candidates who are actually running

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Speaker 1: for president, the candidates were running for re election. They're

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Speaker 1: not talking about the Mala report. They're talking about jobs,

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Speaker 1: they're talking about healthcare, they're talking about you know, they're

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Speaker 1: talking about taxes. That's what ultimately, that's what played out

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Speaker 1: last last fall, and Democrats wrote that to a major upset. Um.

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Speaker 1: I think you're going to see the same thing with

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Speaker 1: whoever the Democrats nominate next year. Do you know who's

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Speaker 1: talking about Wells Fargo? Senator Elizabeth Warren. Did you guys

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Speaker 1: see this? She's running for president? And Tim Sloan, the

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Speaker 1: embattled CEO of Wells Fargo man, he had a rough

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Speaker 1: hearing on Capitol Hill before Chairwoman Maxine Waters the other

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Speaker 1: week he stepped down. Uh, and now the new chief,

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Speaker 1: whoever it is, is gonna face a scandal candle legacy, Adam.

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Speaker 1: I mean, what does this say about I find it

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Speaker 1: interesting because Wells Fargo was criticized not just by progressives

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Speaker 1: on the left, but also by Tea Party Republicans. Yeah, no,

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Speaker 1: that's absolutely right. I think what this says is that

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Speaker 1: with Democrats in power in the House, Uh, there's going

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Speaker 1: to be a much brighter microscope on the financial institution

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Speaker 1: and and and the banks and they're gonna pay attention. Um,

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Speaker 1: They're gonna have to pay attention to what is going

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Speaker 1: on on Capitol Hill and specifically within the House Democratic Caucus.

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Speaker 1: I'm I remember back in two thousand and nine when

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Speaker 1: Ken Lewis, the former CEO of Bank of America, also

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Speaker 1: had a rough go of on Capitol Hill. He also

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Speaker 1: was forced to step aside. This will create an opportunity

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Speaker 1: to reset their relationship with Wells Fargo and Maxine Waters.

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Speaker 1: With whoever the new CEO is. I think there's some

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Speaker 1: rumors that might be the General Council, might be the

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Speaker 1: interim CEO UM, and so we'll see how this place

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Speaker 1: this plays out. They clearly have a path to to

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Speaker 1: to chart from here, and how they chart that path

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Speaker 1: is going to be important. I think they were named

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Speaker 1: like the number one most charitable bank though in America.

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Speaker 1: I mean, there's so much that they're doing. I mean, look,

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Speaker 1: they have a lot of shoes that they've got to

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Speaker 1: sort through, but they've got to tell their story. And

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Speaker 1: the bank is launching quote I'm gonna read from our

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Speaker 1: Bloomberg terminal report by my colleague Hannah Levitt. She says

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Speaker 1: that the bank is uh launching an external search for

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Speaker 1: its next CEO and president UH and Sloan spent more

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Speaker 1: than thirty one years thirty one years, three decades working

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Speaker 1: for Wells Fargo. He rose to CEO after this. This

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Speaker 1: is what really stuns me, Adam, and you're working with

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Speaker 1: businesses and and he was placed as CEO after the scandal,

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Speaker 1: and yet still just managed to to not be able

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Speaker 1: to UH to survive this or to get through this.

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Speaker 1: I do want to read Senator Elizabeth Warren's tweet today

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Speaker 1: because she is running for president. She was one of

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Speaker 1: the most prominent members Sarah McGregor hitting this bank. She says,

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Speaker 1: quote about damn time. Tim Sloan should have been fired

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Speaker 1: a long time ago. He enabled Wells Fargo's massive fake

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Speaker 1: accounts scam, got rich off it, and then helped cover

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Speaker 1: it up. Now out, let's make sure all the people

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Speaker 1: hurt by Wells Fargo scams get the relief their own

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Speaker 1: end quote. Speaking of Senator Warren, did you see this?

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Speaker 1: She had lunch with AOC today. This was all over Twitter.

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Speaker 1: So Senator Warren, who will not describe herself as a

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Speaker 1: democratic socialist, has launched with the you know, one of

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Speaker 1: the most influential Democratic Socialists who I mean, I guess

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Speaker 1: candidly she gotta start working for Kennedy and Warren has

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Speaker 1: Kennedy c But what do you make of this sort

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Speaker 1: of relationship, this budding political relationship, Sarah, between AOC and

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Speaker 1: Senator Elizabeth Warren. It seems to be a different world

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Speaker 1: for the Democrats right now, and I think the old

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Speaker 1: guard is now needs to meet with the new guard

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Speaker 1: and maybe take a little bit from each other's playbooks. Um.

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Speaker 1: You know, there seems to be a pretty open race

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Speaker 1: right now for the Democratic nomination from where from what

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Speaker 1: I can see, and um, you do have to wonder

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Speaker 1: what alliances are going to form and how each candidates

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Speaker 1: going to position themselves. You know, if you're if you're

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Speaker 1: seeing perhaps it's a progressive but of a certain age

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Speaker 1: or experience, you might want to try and align yourself

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Speaker 1: with some of the is. Um, these people who are

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Speaker 1: now in the new face of the Democratic Party and

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Speaker 1: have some new ideas like the Green New Deal, or

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Speaker 1: you know, our supporting ideas like modern monetary theory. There's

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Speaker 1: a lot of ideas out there. I love that modern

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Speaker 1: monetary I can talk modern monetary theory all day. What's

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Speaker 1: interesting with Warren those that she's putting out these ideas,

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Speaker 1: but she she's putting out policy ideas. You might disagree

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Speaker 1: with them, but there's actually specifics. It's kind of refreshing

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Speaker 1: to like be able to talk policy. She's headed to

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Speaker 1: Iowa just a couple of days to continue her presidential

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Speaker 1: campaign Saramon greggor I now you gotta get out of here.

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Speaker 1: Bloomberg News Economic Policy Team leader, Thanks for stopping by.

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Speaker 1: Adam Hodge Days. He's the vice president at s k

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Speaker 1: D Knickerbocker and former d n C Communications director, as

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Speaker 1: well as a former Treasury Department official in the Obama

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Speaker 1: White House. Coming up, we're talking pot policy ahead of

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Speaker 1: a new hearing next week on the House Financial Services Committee.

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Speaker 1: Joe Lusardi, he's the CEO of Cure Leaf. He will

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Speaker 1: join us and more from House Financial Services Committee Chairwoman

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Speaker 1: Maxine Waters. You don't want to miss that. I'm Kevin

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Speaker 1: and Surreally. You can download this sound on podcast on

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Speaker 1: Apple iTunes, at Bloomberg dot com, or by downloading the

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Speaker 1: Bloomberg Business app. You can also check us out on

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Speaker 1: Radio dot com and I Heart Radio. It's a beautiful day.

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Speaker 1: It's opening day and there's n C double A basketball

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Speaker 1: on tonight. I'm Kevin Surili. You're listening to Bloomberg one.

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Speaker 1: This is Sound on with Kevin Surreally on Bloomberg one

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Speaker 1: and one oh seven F M H D two Boltemore.

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Speaker 1: It's Opening day and it could not be a nicer

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Speaker 1: day than today. You're driving home from work. Beautiful day.

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Speaker 1: I hope you get to watch some baseball and some

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Speaker 1: March madness tonight. I kind of tuned out after Villanova lost.

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Speaker 1: Joining us today to help us sort through the US

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Speaker 1: China trade talks as well as everything going on with

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Speaker 1: the Mueller investigation chatter. And did you see this? Wells

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Speaker 1: fargoes CEO Tim Sloan stepping down effective immediately he succumbs

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Speaker 1: to mounting pressure over numerous numerous scandals Alan there ce

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Speaker 1: Alan Parker the NANKS General Council. Uh, he's going to

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Speaker 1: replace him on an interim basis for right now that

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Speaker 1: all these headlines are are crossing fast and furious over

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Speaker 1: the Bloomberg terminal. We were talking earlier about the Department

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Speaker 1: of Justice and everything that's been going on with Attorney

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Speaker 1: General William Barr and how he's really overseeing all of

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Speaker 1: the Mulder investigation, but he actually does some other stuff

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Speaker 1: in his purview. And that's why I'm actually really excited

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Speaker 1: to welcome Joe Losardi, the CEO of cura Leaf, to

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Speaker 1: the program because cura Leaf is the most accessible cannabis

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Speaker 1: brand in the United States and in fact, uh in

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Speaker 1: two thousand and eighteen, curra Leaf completed the largest ever

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Speaker 1: US cannabis r t O and last week the company

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Speaker 1: reported earnings and reiterated its full year in two thousand

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Speaker 1: and nineteen managed revenue guidance of four hundred million dollars.

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Speaker 1: So the pop business is for real, but serious question, Joe.

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Speaker 1: From a regulatory standpoint, now, it's the state and federal regulators.

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Speaker 1: They've really got to catch up. So what's happening in

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Speaker 1: the marketplace? No, yeah, I think that's right. There's a

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Speaker 1: huge conflict between federal and state law that needs to

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Speaker 1: be resolved. Um, as you said, the Attorney General is

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Speaker 1: looking at this issue. When his confirmation hearings, he said

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Speaker 1: that the position is untenable and Congress needs to act

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Speaker 1: because it's not a step of the American public. So

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Speaker 1: we don't know what he'll do, but we know that

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Speaker 1: he wants Congress to do something about this. So it's

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Speaker 1: kind of insane that you have large financial institutions that

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Speaker 1: are unable to really provide the financial support because pot

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Speaker 1: or marijuana or cannabis call it what you want is

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Speaker 1: still deemed on the on the drug registry. I mean,

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Speaker 1: it's still deemed what's the technical technical schedule one. It's

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Speaker 1: so you actually have like bank officials that are stuffing

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Speaker 1: briefcases with cash because in order to to avoid you know,

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Speaker 1: any type of that regulatory hurdles. So what would you

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Speaker 1: like to see happen in terms of or what what

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Speaker 1: type of regulation do you think there should be a

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Speaker 1: standardized one, should it be left in the States, a

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Speaker 1: patchwork of state regulations, or what is the industry's preferred

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Speaker 1: regulatory regime for the cannabis industry? Well, I mean, we're

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Speaker 1: very encouraged by what's happening on the safe factor banking

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Speaker 1: and that's that came out of committee and it's gonna

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Speaker 1: hopefully go to the floor here in the next couple

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Speaker 1: of weeks. So that's very promising, and that will give

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Speaker 1: us access to federal charter banks and loans and other

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Speaker 1: things that every other normal company has. Um we also

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Speaker 1: support the States Act. So the Gardner Warren Bill that

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Speaker 1: we hope will be introduced in the Senate, which will

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Speaker 1: it's a federalist approach. It basically lets the states make

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Speaker 1: their own policy. I mean, there are thirty three states

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Speaker 1: now with medical marijuana laws, ten with adult use laws. Um.

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Speaker 1: There's people have spoken time and time again in these states,

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Speaker 1: and so um, I think the federal government's out of

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Speaker 1: step with the states. I was struck by House Financial

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Speaker 1: Services Committee Chairwoman Maxine Water. She's a Democrat from California.

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Speaker 1: We're gonna hear from her coming up later on in

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Speaker 1: the program and interviewer for Bloomberg Television earlier today. But

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Speaker 1: but this was an issue that didn't get a lot

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Speaker 1: of attention in the last Congress. Uh And and she's

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Speaker 1: sort of signaled behind the scenes is something that she

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Speaker 1: would be willing to work on with Republicans and it

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Speaker 1: might be one of those rare, keyword, rare areas of

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Speaker 1: bipartisan support. No, I think that's right. I don't think

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Speaker 1: anybody thinks it's a good idea to bank this industry

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Speaker 1: in cash. Um, that's not rational public policy. And so

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Speaker 1: it's bipartisan and I hope that we'll get a fix

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Speaker 1: on it this session. Where do you think this industry

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Speaker 1: is headed? More broadly? Because there seems to be a

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Speaker 1: lot of confusion in the industry from a consumer standpoint

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Speaker 1: about all of the different products that are out there.

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Speaker 1: There's a lot of generational divides, there's a lot of

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Speaker 1: educational concerns, a lot of need for perhaps more science

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Speaker 1: in terms of impact. Where do you where is this headed?

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Speaker 1: Let me let me start there. Do you think more

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Speaker 1: research needs to be done in terms of consumer education?

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Speaker 1: How about any research? Right now? It's federally illegal to

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Speaker 1: research cannabis, But for the University of Mississippi, I want

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Speaker 1: to underscore that, Why is just Mississippi allowed to research

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Speaker 1: cannabis and no other institution is antiquated federal policies And

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Speaker 1: we're we're on the hill yesterday pushing for research because

430
00:23:13,680 --> 00:23:16,320
Speaker 1: what we know is anecdotally this plant is helping millions

431
00:23:16,320 --> 00:23:19,320
Speaker 1: of Americans deal with often serious medical conditions, and so

432
00:23:19,680 --> 00:23:23,119
Speaker 1: we need us quality research but we're not allowed right now. Wait,

433
00:23:23,160 --> 00:23:24,960
Speaker 1: so I just want to this is this to me

434
00:23:25,040 --> 00:23:29,880
Speaker 1: like blows my mind. There's only one university in America

435
00:23:30,080 --> 00:23:33,920
Speaker 1: where you can research marijuana. To be clear, there's only

436
00:23:33,960 --> 00:23:36,560
Speaker 1: one university in the country that can actually grow cannabis

437
00:23:36,680 --> 00:23:39,240
Speaker 1: for research. There are very limited studies happening in the

438
00:23:39,320 --> 00:23:41,719
Speaker 1: United States, but it's not nearly enough given how much

439
00:23:41,760 --> 00:23:43,600
Speaker 1: we know the plant can help people. You think there's

440
00:23:43,600 --> 00:23:46,040
Speaker 1: an appetite to change that, like rather quickly. Oh, I

441
00:23:46,080 --> 00:23:48,080
Speaker 1: think so. And I think that another issue is around

442
00:23:48,080 --> 00:23:50,280
Speaker 1: the veterans. So there are twenty three million veterans in

443
00:23:50,320 --> 00:23:53,679
Speaker 1: this country who cannot get access to cannabis. And we

444
00:23:53,760 --> 00:23:56,600
Speaker 1: know for a fact that veterans use this for PTSD,

445
00:23:56,760 --> 00:23:59,080
Speaker 1: chronic pain, and a host of other ailments that they've

446
00:23:59,119 --> 00:24:01,560
Speaker 1: suffered given their lives and limbs to our QUI can't

447
00:24:01,600 --> 00:24:04,080
Speaker 1: they what's the law that has to change? Antiquated federal law.

448
00:24:04,160 --> 00:24:06,280
Speaker 1: The VA is not allowed to even talk about cannabis

449
00:24:06,280 --> 00:24:09,160
Speaker 1: with our veterans. It's just insane. So they can't even

450
00:24:09,160 --> 00:24:11,240
Speaker 1: get a medicinal marijuana card if you're if you're a

451
00:24:11,320 --> 00:24:14,240
Speaker 1: veteran to treat PTSD. V has not even allowed to

452
00:24:14,240 --> 00:24:18,160
Speaker 1: speak to veterans about cannabis. Wow. I mean, you look

453
00:24:18,200 --> 00:24:20,320
Speaker 1: at some of these things, and you look at at

454
00:24:20,359 --> 00:24:23,600
Speaker 1: some of these policies, and and it really it almost

455
00:24:23,600 --> 00:24:27,040
Speaker 1: seems that because there's a lack of dialogue and a

456
00:24:27,119 --> 00:24:31,520
Speaker 1: lack of conversation and of of smart policy German conversation

457
00:24:31,600 --> 00:24:35,560
Speaker 1: and not conversation around you know, with humor or or

458
00:24:35,680 --> 00:24:39,720
Speaker 1: or even joking. I mean, this is a multibillion dollar industry. CDs,

459
00:24:39,800 --> 00:24:41,960
Speaker 1: I believe just has announced that they're going to be

460
00:24:42,000 --> 00:24:45,919
Speaker 1: having some hemp products, um not smoking products, but but

461
00:24:46,000 --> 00:24:48,400
Speaker 1: hemp products that are that are going to be utilized.

462
00:24:48,440 --> 00:24:51,280
Speaker 1: I mean, this is really booming in terms of of

463
00:24:51,280 --> 00:24:55,000
Speaker 1: where this is going. You guys actually just had recent acquisitions.

464
00:24:55,040 --> 00:24:58,200
Speaker 1: Curely have had recent recent acquisitions in Nevada and California

465
00:24:58,480 --> 00:25:01,600
Speaker 1: to deliver on a strategy to aggressively expanded the western

466
00:25:01,640 --> 00:25:04,080
Speaker 1: part of the country. Because California now it's legal, right,

467
00:25:04,200 --> 00:25:07,000
Speaker 1: So I mean that's like so goes California, So goes

468
00:25:07,040 --> 00:25:09,680
Speaker 1: the rest of most of the time and behind the times,

469
00:25:09,720 --> 00:25:12,400
Speaker 1: but uh so goes most of the country now. Yeah,

470
00:25:12,440 --> 00:25:14,040
Speaker 1: and we have a huge presence on the East coast

471
00:25:14,080 --> 00:25:17,520
Speaker 1: as while we are bright in New York, New Jersey, Florida, Massachusetts.

472
00:25:17,520 --> 00:25:19,879
Speaker 1: So I mean just emphasize there are thirty three states

473
00:25:19,880 --> 00:25:22,640
Speaker 1: with medical programs right now. I mean that's the majority

474
00:25:22,680 --> 00:25:24,639
Speaker 1: of the country. And we need the federal policies to

475
00:25:24,720 --> 00:25:27,479
Speaker 1: represent what the American people want, which is cannabis. All right,

476
00:25:27,480 --> 00:25:29,600
Speaker 1: I want to bring in Adam Hodge. He is Vice

477
00:25:29,640 --> 00:25:33,159
Speaker 1: president s K. D. Knickerbocker, former d n C Communications Director.

478
00:25:33,400 --> 00:25:36,040
Speaker 1: You've worked at the Treasury Department in the Obama administration,

479
00:25:36,080 --> 00:25:38,760
Speaker 1: so you know the d o J policies and and

480
00:25:38,960 --> 00:25:41,880
Speaker 1: quite honestly, the d o J under the Obama White

481
00:25:41,880 --> 00:25:44,680
Speaker 1: House and the d o J under the Trump woint

482
00:25:44,720 --> 00:25:48,359
Speaker 1: House I agree on on this. They keep labeling marijuana

483
00:25:48,480 --> 00:25:51,160
Speaker 1: as a drug and and providing a large a lot

484
00:25:51,240 --> 00:25:54,720
Speaker 1: of some would say confusion in the in the marketplace.

485
00:25:54,720 --> 00:25:58,119
Speaker 1: Why is that? I think you have a tough time

486
00:25:58,480 --> 00:26:01,960
Speaker 1: dealing with both of the the politics of of marijuana

487
00:26:02,000 --> 00:26:04,159
Speaker 1: and some some of the outdated or some older members

488
00:26:04,160 --> 00:26:07,520
Speaker 1: on the Hill who just are opposed to to change wholeheartedly. Look,

489
00:26:07,560 --> 00:26:10,120
Speaker 1: this is something in the Obama administration we struggled with

490
00:26:10,600 --> 00:26:13,400
Speaker 1: candidly at that the U. S. Treasury Department. We tried

491
00:26:13,400 --> 00:26:16,400
Speaker 1: to put out regulations, we try to provide clarity for

492
00:26:16,440 --> 00:26:19,199
Speaker 1: some of the financial institutions, and it was hard to

493
00:26:19,359 --> 00:26:23,880
Speaker 1: the policy process was hard to reach. Uh, some some concrete,

494
00:26:24,560 --> 00:26:28,040
Speaker 1: concrete solutions apologies that would actually move the ball forward.

495
00:26:28,040 --> 00:26:31,840
Speaker 1: I think you're seeing more signs that there's appetite for

496
00:26:32,359 --> 00:26:34,840
Speaker 1: a bipartisan compromise on the Hill. I think there are

497
00:26:34,880 --> 00:26:38,199
Speaker 1: some steps that the new administration could do around suspicious

498
00:26:38,359 --> 00:26:42,040
Speaker 1: activity reports that would make a lot easier for banks,

499
00:26:42,320 --> 00:26:46,000
Speaker 1: UH and of financial institutions to play in the cannabis industry.

500
00:26:46,240 --> 00:26:48,080
Speaker 1: And that would, you know, open up. It is a

501
00:26:48,160 --> 00:26:52,000
Speaker 1: multibillion dollar business. As you said, it seems reasonable that

502
00:26:52,640 --> 00:26:54,880
Speaker 1: the powers that be should try to find a way

503
00:26:54,960 --> 00:26:58,480
Speaker 1: to make this business UH function more efficiently. And where

504
00:26:58,480 --> 00:27:01,119
Speaker 1: are you guys, Uh, we're you guys are publicly traded

505
00:27:01,200 --> 00:27:05,960
Speaker 1: Joe in trade on the Canadian Stock Canada counter. But

506
00:27:06,000 --> 00:27:10,480
Speaker 1: here's another because because it's it's Canada, Canada's regulations I'm

507
00:27:10,480 --> 00:27:13,399
Speaker 1: assuming are are different. American companies cannot listen the New

508
00:27:13,480 --> 00:27:16,080
Speaker 1: York Stock Exchange, but Canadian companies can. So let that

509
00:27:16,160 --> 00:27:18,040
Speaker 1: sink in for a second. It makes no sense. And

510
00:27:18,080 --> 00:27:20,040
Speaker 1: when we're talking U, S, M, C, A and and

511
00:27:20,080 --> 00:27:22,720
Speaker 1: that's the two point trade policy, all of this UH

512
00:27:22,720 --> 00:27:25,639
Speaker 1: comes into effect. Joe louis Aardi. Everybody, he's the CEO

513
00:27:25,680 --> 00:27:27,240
Speaker 1: of cure Lee. If he was in Washington, d C.

514
00:27:27,880 --> 00:27:30,679
Speaker 1: All day meeting with lawmakers on both sides of the

515
00:27:30,720 --> 00:27:33,520
Speaker 1: aisle in order to discuss all of these policies. We

516
00:27:33,560 --> 00:27:37,919
Speaker 1: appreciate Joe stopping into the Bloomberg Washington, d C. Radio

517
00:27:38,200 --> 00:27:42,720
Speaker 1: Bureau of Radio Studios appreciate his time coming up. How

518
00:27:42,840 --> 00:27:47,159
Speaker 1: Financial Services Committee Chairwoman Maxine Waters. You can download the

519
00:27:47,200 --> 00:27:50,280
Speaker 1: sound On podcast on Apple iTunes, at Bloomberg dot com

520
00:27:50,400 --> 00:27:53,200
Speaker 1: or by downloading the Bloomberg Business app. You can also

521
00:27:53,240 --> 00:27:55,720
Speaker 1: find us as well as my colleagues on Radio dot

522
00:27:55,720 --> 00:27:59,240
Speaker 1: com and I Heart Radio. I'm Kevin CURRELLI you're listening

523
00:27:59,240 --> 00:28:05,000
Speaker 1: to Bloomberg. You're listening to Sound On with Kevin's really

524
00:28:05,359 --> 00:28:11,280
Speaker 1: on Bloomberg and m h D two Bolsom are happy

525
00:28:11,359 --> 00:28:14,440
Speaker 1: spring folks. It's opening day and c double a basketball

526
00:28:14,480 --> 00:28:19,200
Speaker 1: on tonight, beautiful day. Finally the warm weather in Washington

527
00:28:19,440 --> 00:28:23,879
Speaker 1: comes back. We're talking all things politics and policy. I

528
00:28:23,960 --> 00:28:27,320
Speaker 1: was over at the Export Import Banks Annual conference today.

529
00:28:27,359 --> 00:28:31,240
Speaker 1: Peter Navarro was there, the President's UH Economic Advisor, Larry

530
00:28:31,280 --> 00:28:35,640
Speaker 1: Cudlow was there. House Financial Services Committee Chairwoman Maxine Waters

531
00:28:35,760 --> 00:28:39,400
Speaker 1: was there. They actually all agree on the issue of

532
00:28:39,440 --> 00:28:43,560
Speaker 1: getting the Export Import Bank up and functioning. It's one

533
00:28:43,560 --> 00:28:47,280
Speaker 1: of those, well it's critics call it lovingly, maybe not lovingly,

534
00:28:47,400 --> 00:28:49,600
Speaker 1: the Bank of Boeing, but it's one of those credit

535
00:28:49,640 --> 00:28:53,840
Speaker 1: export financing arms that the US has at its disposal

536
00:28:53,920 --> 00:28:58,200
Speaker 1: to help bolster some financing in a range of different

537
00:28:58,200 --> 00:29:02,320
Speaker 1: emerging markets and whatnot. It's interesting because of the U S.

538
00:29:02,400 --> 00:29:06,160
Speaker 1: China trade talks that are developing as we speak. They're

539
00:29:06,200 --> 00:29:10,840
Speaker 1: occurring as we speak, UH in between the US and China.

540
00:29:10,920 --> 00:29:15,320
Speaker 1: Treasury Secretary minutions over there in Beijing. US Chade Representative

541
00:29:15,400 --> 00:29:19,440
Speaker 1: Lightheiser is in Beijing there and and in a couple

542
00:29:19,440 --> 00:29:22,560
Speaker 1: of days when they come back in early April, Vice

543
00:29:22,600 --> 00:29:26,600
Speaker 1: Premier Leo Hu of China is going to be in Washington,

544
00:29:26,680 --> 00:29:29,440
Speaker 1: d C. To continue to negotiate these I caught up

545
00:29:29,440 --> 00:29:34,400
Speaker 1: with Larry Cudlow backstage at this conference and I asked him,

546
00:29:34,480 --> 00:29:37,120
Speaker 1: you know, what should we be looking for in terms

547
00:29:37,120 --> 00:29:39,920
Speaker 1: of a timeline of a trade deal between the US

548
00:29:39,960 --> 00:29:42,239
Speaker 1: and China, And he said, Kevin, it's it's it's not

549
00:29:42,480 --> 00:29:46,040
Speaker 1: time dependent, it's policy and enforcement dependent. But what I

550
00:29:46,080 --> 00:29:49,600
Speaker 1: found really interesting about what Larry had to say is

551
00:29:49,640 --> 00:29:53,360
Speaker 1: that on the enforcement side, the President has said that tariffs,

552
00:29:53,760 --> 00:29:57,400
Speaker 1: those tariffs on Chinese imports uh, and might be an

553
00:29:57,480 --> 00:30:01,400
Speaker 1: enforcement mechanism. There's billions of dollars worth tariffs. He said

554
00:30:01,440 --> 00:30:04,200
Speaker 1: that those tariffs might stay in place. President Trump did,

555
00:30:04,800 --> 00:30:07,280
Speaker 1: but Larry Cudler said, well, some of those tariffs might

556
00:30:07,280 --> 00:30:09,760
Speaker 1: come off. So there's it's going to be fascinating to

557
00:30:09,840 --> 00:30:13,560
Speaker 1: watch whether or not there are tarrit it's tariffs exemptions

558
00:30:14,080 --> 00:30:16,840
Speaker 1: when whenever the U. S. And China get to some

559
00:30:16,920 --> 00:30:19,240
Speaker 1: type of trade deal. The other big story today, of course,

560
00:30:19,280 --> 00:30:22,680
Speaker 1: as well as Fargo. The CEO, Tim Sloan has stepped

561
00:30:22,680 --> 00:30:27,280
Speaker 1: down effective immediately. He succumbed to mounting pressure over their scandals.

562
00:30:27,680 --> 00:30:30,200
Speaker 1: He's going to be replaced on an interim basis by

563
00:30:30,240 --> 00:30:33,840
Speaker 1: the bank's General Council c Allen Parker. They're launching an

564
00:30:33,840 --> 00:30:38,320
Speaker 1: external search for their next CEO. But my, oh my,

565
00:30:38,880 --> 00:30:42,600
Speaker 1: Tim Sloan at Wells Fargo, he's out. Senator Elizabeth Warren,

566
00:30:42,640 --> 00:30:46,280
Speaker 1: one of the banks biggest critics. She tweeted out, quote,

567
00:30:46,280 --> 00:30:50,640
Speaker 1: it's about damn time end quote, and we're still talking Mueller.

568
00:30:50,720 --> 00:30:54,000
Speaker 1: Democrats want that Mueller report released. American people, according to polls,

569
00:30:54,280 --> 00:30:58,800
Speaker 1: want that Mueller report release. Republicans and Democrats alike, but

570
00:30:58,920 --> 00:31:03,160
Speaker 1: the subpoena power doesn't just stop in the courts. Democrats

571
00:31:03,240 --> 00:31:07,200
Speaker 1: have that as well. So at the x in conference,

572
00:31:07,400 --> 00:31:10,360
Speaker 1: House Financial Services Committee Chairwoman Maxine Waters was there. I

573
00:31:10,440 --> 00:31:13,160
Speaker 1: interviewed her for Bloomberg TV. You can see that We're

574
00:31:13,160 --> 00:31:15,960
Speaker 1: gonna play it erant throughout the day, I believe tomorrow,

575
00:31:16,240 --> 00:31:18,000
Speaker 1: but I want to play a portion of it for

576
00:31:18,160 --> 00:31:20,800
Speaker 1: you now about how she's using the power of the

577
00:31:20,840 --> 00:31:25,640
Speaker 1: gavel on her oversight of the Trump financial disclosures. Here's

578
00:31:25,680 --> 00:31:30,000
Speaker 1: the House Financial Services Committee Chairwoman Maxine Waters. Well, as

579
00:31:30,040 --> 00:31:32,240
Speaker 1: you know, the six committees are sold that have some

580
00:31:32,360 --> 00:31:37,360
Speaker 1: oversight responsibility in areas that deal with this investigation. We

581
00:31:37,520 --> 00:31:40,480
Speaker 1: have our work to do, we have our ordinary work

582
00:31:40,520 --> 00:31:43,360
Speaker 1: to do. In my Financial Services Committee, I have the

583
00:31:43,440 --> 00:31:46,840
Speaker 1: Treasury and so I'm concerned about sanctions, I'm concerned about

584
00:31:46,840 --> 00:31:50,360
Speaker 1: money laundring, and so I'll continue on those issues. And

585
00:31:50,440 --> 00:31:53,360
Speaker 1: of course it will involve itself with some of what

586
00:31:53,440 --> 00:31:57,400
Speaker 1: has gone on with Trump and the family and the investigations.

587
00:31:57,680 --> 00:32:01,080
Speaker 1: And so we are seeking documents, for example from dor

588
00:32:01,120 --> 00:32:04,720
Speaker 1: Bank UH and we will determine what we're going to

589
00:32:04,760 --> 00:32:07,680
Speaker 1: do in terms of issue and subpoenas et cetera. But

590
00:32:07,800 --> 00:32:09,880
Speaker 1: we're going to continue with the work that needs to

591
00:32:09,920 --> 00:32:12,880
Speaker 1: be done, so subpoena still on the table. Well, always,

592
00:32:13,400 --> 00:32:15,440
Speaker 1: you have to know when you get to the part

593
00:32:15,560 --> 00:32:17,440
Speaker 1: when you can do that, and you have to have

594
00:32:17,640 --> 00:32:21,040
Speaker 1: the information that you've requested by way of the documents,

595
00:32:21,200 --> 00:32:23,640
Speaker 1: and when you do your work, you will know whether

596
00:32:23,720 --> 00:32:26,480
Speaker 1: or not it's time or you should issue CA Sapino.

597
00:32:26,720 --> 00:32:30,440
Speaker 1: That was House Financial Services Committee Chairwoman Maxine Waters, Democrat

598
00:32:30,520 --> 00:32:33,120
Speaker 1: from California. Check out my full interview with her on

599
00:32:33,240 --> 00:32:36,800
Speaker 1: Bloomberg tv dot com Adam Hodge. She's a former Treasury

600
00:32:36,800 --> 00:32:39,920
Speaker 1: Department official at the during the Obama administration. He was

601
00:32:39,960 --> 00:32:42,640
Speaker 1: listening to that. He's at SKD Nickerbocker. He just got

602
00:32:42,680 --> 00:32:45,600
Speaker 1: a promotion. Congrats on the promotion a senior vice president.

603
00:32:46,360 --> 00:32:49,160
Speaker 1: Uh yeah, it's um. Now I actually have to to

604
00:32:49,240 --> 00:32:52,160
Speaker 1: approve it. But I think the one the big takeaway

605
00:32:52,200 --> 00:32:54,280
Speaker 1: I think from Maxine Water, she's been talking about this

606
00:32:54,360 --> 00:32:56,520
Speaker 1: issue from well into last year when she was talking

607
00:32:56,520 --> 00:32:59,760
Speaker 1: about getting the gavel um. The Financial Services Committee has

608
00:32:59,880 --> 00:33:02,800
Speaker 1: a lot of sharp members who have experienced in the industry,

609
00:33:03,360 --> 00:33:05,640
Speaker 1: who can actually ask tough questions, and I think that

610
00:33:06,000 --> 00:33:09,000
Speaker 1: the President Trump was able. It's not forget was able

611
00:33:09,040 --> 00:33:11,920
Speaker 1: to run for for president and he did not release

612
00:33:12,040 --> 00:33:14,360
Speaker 1: his tax returns. There's a lot of questions that were

613
00:33:14,400 --> 00:33:16,440
Speaker 1: raised during the campaign about why that was and what

614
00:33:16,560 --> 00:33:19,680
Speaker 1: these ties were. Two years on, we still don't have

615
00:33:19,760 --> 00:33:23,480
Speaker 1: answers to that question, and I think UH Democrats certainly

616
00:33:23,520 --> 00:33:25,880
Speaker 1: feel that that UM as the party in charge, they're

617
00:33:25,960 --> 00:33:28,440
Speaker 1: entitled to that to that information. I think that this

618
00:33:28,520 --> 00:33:31,720
Speaker 1: is going to be something that they are members on

619
00:33:31,760 --> 00:33:34,800
Speaker 1: the Hill, are going to be focused on all year long,

620
00:33:34,840 --> 00:33:36,640
Speaker 1: and we'll see where it goes. All right, Adam Hodge,

621
00:33:36,640 --> 00:33:39,600
Speaker 1: thanks for coming on. Thank you also to our guests

622
00:33:39,880 --> 00:33:43,120
Speaker 1: Joe Lousardi, CEO of Pure Leaf, as well as Sarah McGregor,

623
00:33:43,120 --> 00:33:46,280
Speaker 1: Bloomberg News ECO team leader. That's it for me. I'm

624
00:33:46,320 --> 00:33:49,840
Speaker 1: Kevin surreally happy opening day. You're listening to Bloomberg