Everybody keeps saying Washington is all about politics – at least that’s what I heard before, or even after coming to Medill’s Washington news bureau. But two month later and one day before my graduation from this program, I can tell you in my loudest voice: That’s a lie!
Washington is also about business and finance. As a business and finance reporter who has covered this beat for two months in Washington, I can never tell you enough how juicy this beat is in this city. You may not get to write about the technical analysis of the financial markets’ movement as much as you would in Chicago or New York, but you’ll be writing about something even more exciting than that: financial regulations that could easily move the market.
Who should you look at when you’re trying to track high-profile financial regulations? Here are my five favorites:
1. “Super Committee”
One thing you can’t miss as a finance reporter in Washington is writing about our famous budgetary difficulties and deficit reduction. When it comes to this issue, Super Committee is your meat. (Note: I personally did three stories related to it this quarter.) The committee is created by the debt deal reached on Aug. 2 and is charged with coming up with a plan of at least $1.2 trillion in deficit reduction by Nov. 23. Since the committee is made up of a bipartisan panel, it’s not hard to imagine the difficulties its members would have to go through before reaching an agreement, if they ever do. That means you’ll have plenty of things to write about in the process of their discussions and maneuvers.
And if they don’t come up with a plan, there’s going to be even more drama, since an across-the-board impasse triggers cuts. Among all the experts I talked to, not many of them were optimistic that the committee would be able to reach a deal.
2. The Securities and Exchange Commission
As the regulator of Wall Street firms, the SEC has always been under the spotlight in financial news. Early this month, House Financial Services Committee chairman Spencer Bachus drafted legislation to restructure the SEC and implement reforms recommended by the proposing “SEC Modernization Act.” Along with the committee’s postponed hearing on the SEC’s reform, there could be a lot going on with the agency once Congress comes back to town in September.
3. The Commodity Futures Trading Commission
Many eyes are on CFTC because the agency is charged with regulating the humungous over-the-counter derivatives market, which has never been regulated before. To start with, the agency has to come up with tons of rules like the definition of “swap,” “swap dealer,” or “major swap participant.” Although they have finalized some of the rules, there are still plenty of them left on the discussion table. It would be a good idea to keep a close eye on the meetings CFTC schedules to look at rules proposals, because one single definition the agency comes up with could move the entire derivatives market.
4. The Federal Reserve
The Fed is so important to the financial market that anything Fed Chariman Ben Bernanke has to say is highly anticipated and could have a huge impact on stock markets. Since the Fed’s building is just a 10-minute-ride away from Medill’s newsroom, it won’t be a bad idea to attend as many Fed meetings here as you can.
Just keep one thing in mind: The Fed does not have wifi in its building, which is devastating to a reporter, so always bring your own wifi card (provided by the newsroom) when covering events.
5. The Senate Banking Committee and the House Committee on Financial Services
It wouldn’t make sense if you don’t cover Congress while we’re in Washington. For a finance reporter, these two committees are probably the most important. Covering their hearings as your spot stories is a very helpful starting point, not to mention that it’s a great place to make contacts and get information you use for enterprise stories.
Also one thing to remember: Always do research on the witnesses of each hearing you’re attending. The committee will give you a list of the names and current titles of the hearing witnesses, but what they won’t tell you is their former titles, which can be really important to your understanding of their views and the entire story. You never know whether a current Princeton finance professor is the Fed’s former No. 2 guy.