Robert De Niro and Producer Jane Rosenthal, Co-Organizers of The

April 24 — April 30, 2017 | bloomberg.com

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Robert De Niro and producer Jane Rosenthal, co-organizers of the Tribeca Film Festival, discuss the future of movies 34 ▶ ▶ dented levels.” �Brett Popplewell to unprecegrow andcapital our scale creates anenvironment where we can to worry about crossing lines state Nothaving andrisk. uncertainty comes federal level it’s With that stillacrime. ators are because at the stillstuck, president ofCanopy. “American oper willbecome,”nies says Mark Zekulin, more dominanttheCanadian compa- U.S. prohibition remains inplace,the for Canada’s longer “The potbusiness. go potmarkets. after legal whether theTrump will administration questions raising about marijuana, noninterference withstatelaws on ofa review policy ofanObama-era JeffGeneral Sessions recently ordered California inNovember, U.S. Attorney passed recreational use laws, including an increasingnumber have ofstates limbointheU.S.in legal Although Canada’s blackmarket. widely seenasthedominantplayer in the Hells Angels biker which gang, is have lower coststhan production market—though Canopy claimsto and stillbeableto undercut theblack Canada’s LPswould beableto charge ments in2018. the federal andprovincial govern- revised complaintto add anadvocacy inWashington,Ethics orCREW, filed a April 18, Citizensfor Responsibility and violate Ondealings theConstitution. to business bolster itsclaimsthat his has addedandplaintiffs allegations President DonaldTrump inJanuary A publicwatchdog group that sued Boost From Restaurants A Trump Lawsuit a Gets The Constitution business inCanada,for recreational use. 2018, target for legalizingmarijuana,already abig The bottom lineTrudeau isaimingfor aJuly1, Politics/ ▶ ▶ away from meandothers” president business “The istaking Trump shoulddivest A That could end upbeinggood news remainsIt willalsohelpifmarijuana thelessThe higherthetax, only C$675 million inrevenue for Top Chef judgeandothers argue Policy - - petitive disadvantage for restaurants United. “He’s clearly created acom- Restaurant Centers Opportunities of thegroup added to CREW’s suit, tor Top, owner Chef ofrestaurant opera- Tom Colicchio, judge head show onTV including Kuwait andSaudi Arabia. received payments from countries andhasthe diplomatic community tion, thehotel hasmarketed itselfto The lawsuit alleges that sincetheelec- International Hotel Washington, D.C. Trump’s such properties, asTrump that they faceunfaircompetitionfrom much more robust claimofinjury— taurants andtheiremployees offer a have to sue. thestanding Now, theres- fered any harmandtherefore doesn’t because CREWhasn’tmissed suf saidit - should bedis critics filed, Afterbolster thecase. itwas first ing to thecomplaint. accordviolations oftheConstitution, - governments,” leadingto “numerous” as unprecedented influence by foreign ofinterest, as countless conflicts well interests are “business creatingHis group saidinitsamendedcomplaint. of President Donald J. Trump,” the andsecret complicated asthosevast, a president interests with business as the peopleofUnited elected States tutional provision. “Never before have inviolation ofaseparatecials, consti- benefits from federal andstateoffi- receivingident is andother business CREW hasadded claimsthat thepres- ments without congressional approval. getnesses money from foreign govern - emoluments clause busi- because his inviolation oftheConstitution’sis event booker asplaintiffs. and 25,000 workers, andaluxury hotel group representing 200restaurants Trump “is enriching himself,”Trump enriching “is says The new plaintiffsandclaimsmay CREW initially claimedthat Trump Crafted Hospitality , and member , andmember - is paymentis rendered, for services receivenies from foreign governments contend that compa- themoney his Trump’slated theConstitution. lawyers to sueright andthat Trump hasn’t vio grounds that CREWdoesn’t have the onthe judge thecase to dismiss expected to ask aManhattanfederal returns tax andotherfinancial records. to CREWseeksaccess Trump’sthe suit, he’s of part inviolationAs ofthelease. Washingtonof his hotel despite claims permit himto continue thesite leasing the federal government’s to decision of trademarks to thepresident and months, includingChina’s granting that have occurred inthe pastthree W. Bush administration. lawyerformer ethics withtheGeorge CREW along withRichard Painter, a Obama White House, who leads Eisen, a lawyer former ethics inthe as hetook theoath,” says Norman assoon violation oftheConstitution a Culture Authority. “We’ve never had Ltd. & Commercial Bank of China Trump Tower by leases theIndustrial plaint alsochallenged asimproper hotels andgolf courses.Thecom- lomats andforeign to officials Trump’s paymentstion, CREWcited from dip daybusiness after Trump’s inaugura- filedon nal complaint, Jan.23,thefirst ous presidents have- done.Intheorigi the proceeds asprevi inablindtrust - holdings,thenput business uidate his the Constitution,” she says. that violate practices unfair business awaybusiness from meand otherswith presidenttaking Republican. is “The evensuit, though she says she’s a based event booker, hasjoinedthe and hotels.” Jill Phaneuf, aWashington- president who was inimmediate Trump properties The Department ofJustice is The Department CREW’s new claimsinvolve events that CREWargues Trump should liq- restaurants, says owns Riverpark Colicchio, who have anunfair advantage and theAbuDhabiTourism & and other - -

FROM LEFT: BRYAN BEDDER/GETTY IMAGES; EDUARD HUEBER/ARCAID/ALAMY; CHRIS GOODNEY/BLOOMBERG Politics/Policy which doesn’t violate the Constitution. Board Building—and start channel- that the Volcker Rule, which is sup- Even if CREW prevails at first on the ing Ron or Rand Paul, the father-son posed to keep deposit-taking institu- question of standing, it may be some anti-Fed duo. “Whatever else he would tions from trading for their own profit, time before appeals are exhausted. The be, I don’t think he would be a dis- was “not well-designed.” That’s what issue could eventually make its way rupter of the Federal Reserve,” says a lot of people have been saying lately, to the U.S. Supreme Court, which has Edwin Truman, a nonresident senior including Tarullo, who in his valedictory imposed stricter standing requirements fellow at the Peterson Institute for speech on April 4 said the Volcker Rule in recent years, says Josh Blackman, an International Economics. is too complicated and “may be having a associate professor at the South Texas Though his nomination isn’t offi- deleterious effect on market-making.” College of Law, who is preparing a brief cial, on April 17 a person familiar with Last year Quarles co-wrote a Wall supporting the government’s position. the selection process confirmed news Street Journal op-ed disagreeing with CREW disagrees, pointing to a 1982 reports that Quarles will be Trump’s Minneapolis Federal Reserve Bank Supreme Court ruling that found stand- pick to be the Fed’s vice chairman President Neel Kashkari, who wants the ing for a housing-rights group that sent of supervision, a post created by the biggest banks to black and white “testers” to determine Dodd-Frank Act. “The administra- Randal have much wider if a real estate firm was discriminat- tion is becoming very conventionally Quarles safety margins, ing against black people in its rentals. Republican,” says Gerald O’Driscoll, calculated by the CREW filed its suit in New York, where a senior fellow at the Cato Institute. 1984 value of assets vs. Graduates from Yale lower federal courts have given a rela- “There were all sorts of people on the Law School liabilities. Quarles tively broad reading to that case. As for list” of potential nominees “who would 1984-1990 and Lawrence Colicchio, he’s hoping this all resolves have stirred things up.” Works for Wall Street Goodman, presi- itself without a long, tortuous run President Barack Obama never nom- law firm Davis Polk & dent of the Center Wardwell through the legal system. “I just hope inated anyone for the job. Instead, for Financial 1990-1993 that the president does the right thing Fed governor Daniel Tarullo, a liberal Serves in George H.W. Stability, said that and divests himself.” �Bob Van Voris Democrat, informally filled the role. Bush’s Treasury Dept. demanding more A protégé of the late Senator Ted 1993-2001 capital would slow The bottom line An advocacy group representing Back to Davis Polk 25,000 workers has joined a lawsuit claiming Kennedy of Massachusetts, Tarullo had economic growth. Trump’s business interests violate the Constitution. a testy relationship with chief execu- 2001-06 Policymakers, they Serves as George W. tives of big banks, including JPMorgan Bush’s undersecretary wrote, should “fully 35 Chase & Co.’s Jamie Dimon, who for domestic finance measure and eval- accused him of being unnecessarily 2006-14 uate the impact of harsh. Tarullo announced his resigna- Partner at private equity Dodd-Frank on the firm Carlyle Group The Fed tion in February, effective this month. financial system 2014 Quarles marks a big change from Co-founds Cynosure before arbitrarily A Safe Choice to Tarullo. He favors lightening regula- Group, an investment taking an ax to big tion of banks, curbing mortgage giants firm in Salt Lake City for banks and irrep- Regulate Banks wealthy families Fannie Mae and Freddie Mac, and arably damag- using explicit rules to conduct mone- ing the economy.” ▶▶Utah investor Randal Quarles tary policy, according to his own writ- The same op-ed called for the Fed to be will be nominated to the Fed ings and interviews with analysts. “He more formulaic in setting interest rates ▶▶“The administration is becoming sees things clearly without being an by following a rule such as the one pro- very conventionally Republican” ideologue,” says Lawrence Uhlick, a pounded by Stanford economist John former president of the Institute of Taylor. Quarles served under Taylor The populist, end-the-Fed wing of the International Bankers, who dealt with when Taylor was George W. Bush’s Republican Party isn’t going to like him when Quarles worked for George undersecretary of the Treasury for inter- President Trump’s choice for the criti- W. Bush’s Treasury Department and national affairs. cal job of overseeing bank regulation at when he represented banks as a senior One thing Quarles won’t do is the Federal Reserve. Randal Quarles, lawyer at Davis Polk & Wardwell. threaten the Fed’s existence. In 2014 who founded and runs a Utah invest- Quarles will have a lot of discre- bronze sculptures of Eccles, the former ment firm named Cynosure Group, is tion over the annual stress tests of Fed chief, were installed at Fed head- a Wall Street lawyer who worked for major banks, which the Fed con- quarters and on the grounds of the both Bush presidents and is married to ducts to ensure they can withstand a Utah State Capitol. Quarles and his a member of the powerful and wealthy severe financial crisis without needing wife, Hope Eccles, whose grandfather Eccles family—as in Marriner Eccles, a bailout. Bank CEOs complained that was Marriner’s brother, helped pay for who was chairman of the Federal under Tarullo, stress tests were not the memorials. �Peter Coy Reserve from 1934 to 1948. only too tough but too unpredictable. The bottom line Trump’s pick as the Fed’s top bank In other words, Quarles, 59, is an “That’s an area where we will see a shift regulator may try to scale back the Volcker Rule important part of the GOP’s financial in ideology, and he could do it himself,” and stress tests. establishment. Not exactly the type to says Isaac Boltansky, an analyst at walk into the Fed’s headquarters—aka Compass Point Research & Trading LLC. Edited by Matthew Philips the Marriner S. Eccles Federal Reserve Quarles told Bloomberg TV in 2015 Bloomberg.com