Wonkbook: Why Clinton's pick for vice president might contradict her message on Wall Street

By Max Ehrenfreund Hillary Clinton has picked Tim Kaine as her running mate, despite criticism from liberal Democrats for his lenient positions on Wall Street. A letter the senator from Virginia sent to the Federal Reserve earlier this week shows why they're frustrated. In the letter, Kaine and three other senators ask Janet Yellen, the head of the central bank, …   The latest economic and domestic policy from Wonkblog   Hillary Clinton embraces Sen. Tim Kaine (D-Va.) in Annandale, Va. on July 14. (Photo by Melina Mara/The Washington Post) By Max Ehrenfreund Hillary Clinton has picked Tim Kaine as her running mate, despite criticism from liberal Democrats for his lenient positions on Wall Street. A letter the senator from Virginia sent to the Federal Reserve earlier this week shows why they're frustrated. In the letter, Kaine and three other senators ask Janet Yellen, the head of the central bank, and her colleagues to exempt some banks from a requirement that they report important data on their financial stability every day. "The daily reporting requirements may impose significant burdens on the firms without associated benefits to the financial system," writes Kaine along with Sens. Mark Warner (D-Va.), Gary Peters (D-Mich.) and Robert Casey Jr. (D-Pa.). This rule forces financial institutions to calculate their liquidity — a measure of how easily banks can pay any debts they owe in the short term. Calculating liquidity can be a complicated process for a large financial institution, and without having to meet daily requirements, banks would be able to make riskier, more profitable investments. In a financial panic, it can be difficult for banks to secure new loans, so they must be able to cover their existing debts without borrowing money from another bank. If depositors doubt a firm's ability to do so, there could be a run on the bank. Read the rest on Wonkblog.   Chart of the day Gamblers who bet on Donald Trump early won big. Kim Soffen has more. Top policy tweets "When FOMC meets this week, most investors expect them to do what they have done at every meeting this year: nothing https://t.co/FRVJnN83cE" -- @toristilwell "Hysteresis ain't just about the labor market. How recessions might reduce productivity growth https://t.co/zkJ1KMjb6R" -- @nick_bunker "Africa is being looted with the complicity of banks, businessmen and real estate brokers from rich countries https://t.co/ZVkzQmu6dd" -- @alexcuadros ADVERTISEMENT   Most Recent Posts from Wonkblog The downside of being happy Nobody likes to be sad, but it can have a powerful and positive effect. By Ana Swanson  •  Read more »   People who took a gamble on Trump's nomination walked away rich. It would have just taken a little bit of foresight. By Kim Soffen  •  Read more »   Why Clinton’s pick for vice president might contradict her message on Wall Street Some liberals are feeling betrayed by the person Clinton picked as a running mate. By Max Ehrenfreund  •  Read more »   ADVERTISEMENT   Recommended for you   Federal Insider Federal news and policy update, in your inbox daily. Sign Up »         Share Wonkbook:       Twitter      Facebook Trouble reading? Click here to view in your browser. You received this email because you signed up for a Wonkblog newsletter. For additional free newsletters or to manage your newsletters, click here. We respect your privacy. If you believe that this email has been sent to you in error or you no longer wish to receive email from The Washington Post, click here. Contact us for help. ©2016 The Washington Post, 1301 K St NW, Washington DC 20071