American companies are poised to take center stage at next year’s Capitol Hill, with a series of events this week confirming they will be scrutinized from all sides.
House Republicans have formally laid out plans to sweep into investigation when the company takes control next month. Meanwhile, with the re-election of Sen. Raphael Warnock (D-GA), Senate Democrats are set to control the committee and have voting rights to conduct their own investigations into business there. Independent with an unexpected twist.
As a result, companies and their executives in various sectors such as energy, big tech, financial services and pharmaceuticals are expected to face hearings, subpoenas and investigations in 2023.
“If you don’t have the ability to legislate, you shift that function to high-profile hearings and oversight,” Raymond James Washington policy analyst Ed Mills said in an interview. There will be a desire to provide the reverse program for hearings that are likely to be held.”
Big tech and energy set their sights on the House
Kevin McCarthy released a document this week detailing his oversight plans for 2023, despite trying to secure the vote to become Speaker of the House. He said he wanted to focus on the government’s “huge spending” and accusations that “Democratic policies have sold out America’s energy security and American industry.”
But hearings on these issues seem to focus more on the Democrats and the Biden administration than the companies themselves.
As for their favorite boogeyman, Big Tech, House Republicans also accuse them of having “special ties” with government officials, alongside the actions of companies such as Twitter (TWTR), Facebook (META) and Google. will focus on. (GOOG) or TikTok.
In a recent Fox News interview, McCarthy said, “The American people have just spoken out,” and voters, among other things, “want the government to be held accountable.”
House Republicans also said they would focus on broader antitrust issues and China.
“Counterprogramming” from the Senate
In the Senate, after Warnock’s victory, majority leader Chuck Schumer said this week that Democrats plan to use the majority to subpoena companies and executives as part of a planned investigation. .
“The power of subpoenas can address corporate corruption, inequality and other country-wide issues,” he said at a news conference on Wednesday, without elaborating. “I need to talk to the members and find the direction I want to go.”
Schumer’s comments came before Cinema’s big news rocked the Senate, but while the Arizona senator has not said whether she will attend the caucuses with the Democrats, she does have a Democratic majority. maintains committee mandate through.Democrats “retain new majority on committee” [and] Please exercise the power of our subpoena,” Schumer confirmed Friday morning.
Democrats are likely to focus on issues such as the perceived corporate profiteering during last year’s high inflation, as well as pharmaceutical companies. Democrats have suggested other areas could include topics such as energy prices and union busting.
Senator Ron Wyden (D-OR), chairman of the powerful Senate Finance Committee, has already written to Amgen (AMGN) inquiring about tax avoidance charges on the sale of prescription drugs. The company has allegedly avoided billions of dollars in tax payments through its subsidiaries, and Wyden is seeking information on earnings and taxes. Subpoenas may follow next year if the company does not meet his satisfaction.
Mills also noted that the Senate investigation could have implications for actual policy as the White House and regulators watch these investigations unfold.
“By holding these large public hearings, we can give direction and political cover to regulators,” he said. “This is more like a marching order for regulators to do what they can with their power and certain powers through executive orders.”
Pangea Policy founder Terry Haines agrees, recently telling Yahoo Finance:
Other research areas
A Republican senator sent a letter this week to 51 law firms demanding that they preserve documents showing how they advise clients on environmental, social and corporate governance initiatives. This is the first step in research.
Senate Republicans will not be in power in 2023, and the incoming chairman of the House Financial Services Committee, Rep. I haven’t made it clear yet if I’m going to focus hard. But the effort is likely to put the giant asset management company under the microscope.
Rep. Andy Burr (R-Kentucky) is a member of the House Financial Services Commission and recently said that while giants such as BlackRock, State Street, Vanguard, Invesco and Fidelity are “great corporations”, they are “capital allocation We need to stop the nonsense of politicizing ESG. “
Finally, Mills doesn’t believe political theater will necessarily lead to major policy changes, but “the bottom line I want to tell my clients is that this is a headline risk.”
He said investors should keep in mind that “Washington’s policy is usually an accelerator in either direction based on the situation in which the market is already generally in stocks.”
Ben Werschkul is the Washington correspondent for Yahoo Finance.
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance twitter, Facebook, Instagram, flip board, LinkedIn, YoutubeWhen edit.
