Robert De Niro and Producer Jane Rosenthal, Co-Organizers of The
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April 24 — April 30, 2017 | bloomberg.com Will Disney’s theme park magic pay off with Pandora? p55 Robert De Niro and producer Jane Rosenthal, co-organizers of the Tribeca Film Festival, discuss the future of movies Politics/Policy only C$675 million in revenue for the federal and provincial govern- ments in 2018. The higher the tax, the less Canada’s LPs would be able to charge and still be able to undercut the black Colicchio, who market—though Canopy claims to owns Riverpark have lower production costs than and other the Hells Angels biker gang, which is restaurants, says Trump properties widely seen as the dominant player in have an unfair Canada’s black market. advantage It will also help if marijuana remains in legal limbo in the U.S. Although an increasing number of states have group representing 200 restaurants and hotels.” Jill Phaneuf, a Washington- passed recreational use laws, including and 25,000 workers, and a luxury hotel based event booker, has joined the California in November, U.S. Attorney event booker as plaintiffs. suit, even though she says she’s a General Jeff Sessions recently ordered CREW initially claimed that Trump Republican. “The president is taking a review of an Obama-era policy of is in violation of the Constitution’s business away from me and others with noninterference with state laws on emoluments clause because his busi- unfair business practices that violate marijuana, raising questions about nesses get money from foreign govern- the Constitution,” she says. whether the Trump administration will ments without congressional approval. CREW argues that Trump should liq- go after legal pot markets. CREW has added claims that the pres- uidate his business holdings, then put That could end up being good news ident is receiving business and other the proceeds in a blind trust as previ- for Canada’s pot business. “The longer benefits from federal and state offi- ous presidents have done. In the origi- U.S. prohibition remains in place, the cials, in violation of a separate consti- nal complaint, filed on Jan. 23, the first more dominant the Canadian compa- tutional provision. “Never before have business day after Trump’s inaugura- nies will become,” says Mark Zekulin, the people of the United States elected tion, CREW cited payments from dip- president of Canopy. “American oper- a president with business interests as lomats and foreign officials to Trump’s 34 ators are still stuck, because at the vast, complicated and secret as those hotels and golf courses. The com- federal level it’s still a crime. With that of President Donald J. Trump,” the plaint also challenged as improper comes uncertainty and risk. Not having group said in its amended complaint. Trump Tower leases by the Industrial to worry about crossing state lines His “business interests are creating & Commercial Bank of China creates an environment where we can countless conflicts of interest, as well Ltd. and the Abu Dhabi Tourism & grow our scale and capital to unprece- as unprecedented influence by foreign Culture Authority. “We’ve never had dented levels.” �Brett Popplewell governments,” leading to “numerous” a president who was in immediate violations of the Constitution, accord- violation of the Constitution as soon The bottom line Trudeau is aiming for a July 1, 2018, target for legalizing marijuana, already a big ing to the complaint. as he took the oath,” says Norman business in Canada, for recreational use. The new plaintiffs and claims may Eisen, a former ethics lawyer in the bolster the case. After it was first Obama White House, who leads filed, critics said it should be dis- CREW along with Richard Painter, a missed because CREW hasn’t suf- former ethics lawyer with the George fered any harm and therefore doesn’t W. Bush administration. The Constitution have the standing to sue. Now, the res- CREW’s new claims involve events taurants and their employees offer a that have occurred in the past three A Trump Lawsuit Gets a much more robust claim of injury— months, including China’s granting Boost From Restaurants that they face unfair competition from of trademarks to the president and Trump’s properties, such as Trump the federal government’s decision to International Hotel Washington, D.C. permit him to continue leasing the site ▶ A Top Chef judge and others argue The lawsuit alleges that since the elec- of his Washington hotel despite claims Trump should divest tion, the hotel has marketed itself to he’s in violation of the lease. As part of ▶ “The president is taking business the diplomatic community and has the suit, CREW seeks access to Trump’s away from me and others” received payments from countries tax returns and other financial records. including Kuwait and Saudi Arabia. The Department of Justice is A public watchdog group that sued Trump “is enriching himself,” says expected to ask a Manhattan federal President Donald Trump in January Tom Colicchio, head judge on TV show judge to dismiss the case on the has added allegations and plaintiffs Top Chef, owner of restaurant opera- grounds that CREW doesn’t have the to bolster its claims that his business tor Crafted Hospitality, and member right to sue and that Trump hasn’t vio- dealings violate the Constitution. On of the group added to CREW’s suit, lated the Constitution. Trump’s lawyers April 18, Citizens for Responsibility and Restaurant Opportunities Centers contend that the money his compa- Ethics in Washington, or CREW, filed a United. “He’s clearly created a com- nies receive from foreign governments revised complaint to add an advocacy petitive disadvantage for restaurants is payment for services rendered, GOODNEY/BLOOMBERG CHRIS HUEBER/ARCAID/ALAMY; EDUARD IMAGES; BEDDER/GETTY BRYAN LEFT: FROM 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.