Overnight Finance: Supreme Court curbs SEC penalty powers | Border tax critics hit the Capitol | Economists back Trump adviser pick

Supreme Court curbs SEC power to seize profits from fraud: The Supreme Court issued a ruling Monday that curbs the power of the Securities and Exchange Commission to recoup profits earned in securities fraud. 

In a unanimous ruling, the court said the SEC can order companies to pay back illegal profits through disgorgement, but it has to do so within five years of any claim of fraud. 

The court’s decision reverses the 10th Circuit Court of Appeals ruling that ordered Charles Kokesh to pay $34.9 million in profits he misappropriated from four business development companies from 1995 to 2009.

The lower court said disgorgement was neither a penalty nor a forfeiture and therefore not subject to a statute of limitations. The Supreme Court disagreed. The Hill’s Lydia Wheeler and I explain: http://bit.ly/2ru0C6a.

Members of anti-border tax group holding meetings with lawmakers: Americans for Affordable Products (AAP) is holding a fly-in this week in which business leaders will urge members of Congress to oppose the border-adjustment tax proposal championed by House GOP leaders.

{mosads}The three-day fly-in is slated to involve more than 80 meetings with lawmakers and their staffs, according to AAP. More than 50 people are expected to participate in the meetings.

AAP, a coalition of retailers and trade groups, has been stepping up its efforts against the border-adjustment tax in recent weeks, as the proposal’s prospects look increasingly dim. Last week, the group launched a television ad.

The border-adjustment tax, which was part of a tax-reform blueprint House Republicans released last year, would subject imports to U.S. taxes and exempt exports. The Hill’s Naomi Jagoda reports: http://bit.ly/2ru9CYI.

Economists support Trump’s pick to lead White House economic council: An ideologically diverse group of 44 economists on Monday expressed support for President Trump’s pick to head up the White House’s Council of Economic Advisers.

The economists urged the Senate Banking Committee to quickly confirm Kevin Hassett, an economist with the American Enterprise Institute, to lead the Trump administration’s economic policy ahead of his nomination hearing slated at the Senate Banking Committee on Tuesday.

“While we disagree on many issues, as economists we all agree that the nation would be well served if Kevin Hassett is confirmed as chairman of the Council of Economic Advisers,” the economists wrote in a letter to Banking Chairman Mike Crapo (R-Idaho) and panel ranking member Sherrod Brown (D-Ohio).

“While the signers of this letter hold a range of views on President Trump’s policies, we all believe that the formulation of economic policy would be advanced by the analysis and advice that Dr. Hassett would bring to the table,” they wrote: http://bit.ly/2ruqS08.

Happy Monday and welcome to Overnight Finance. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@digital-staging.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

On tap tomorrow

• Brookings Institute panel on Orderly Liquidation Authority, “Is Dodd-Frank’s failure resolution regime failing?” 9:30 a.m. http://brook.gs/2qRDhII
• Senate Banking Committee: Hearing on the nominations of Kevin Allen Hassett, of Massachusetts, to be Chairman of the Council of Economic Advisers, and Pamela Hughes Patenaude, of New Hampshire, to be Deputy Secretary of Housing and Urban Development, 10 a.m. http://bit.ly/2ruCbVV
• House Rules Committee: Hearing on the Financial CHOICE Act, 5 p.m. http://bit.ly/2qJ9OAO.

Week ahead: House to vote on Dodd-Frank overhaul: The House will vote in the coming week on a sweeping bill to scale back much of the Dodd-Frank Wall Street Reform Act, the expansive banking regulations passed under former President Barack Obama after the financial crisis.

House Majority Leader Kevin McCarthy (R-Calif.) announced Friday that the chamber would vote on the Financial CHOICE Act after returning from Memorial Day recess.

The CHOICE Act is an effort to undo much of Dodd-Frank, a law long panned by Republicans as a burden on the U.S. economy and businesses. The bill, sponsored by House Financial Services Committee Chairman Jeb Hensarling (R-Texas), passed his panel earlier this month with unanimous Republican support and unified Democratic opposition. I’ve got all you need to know here: http://bit.ly/2ruaaxU.

Agriculture groups push Congress to keep interest deduction: More than 30 agriculture groups are expressing concerns about House Republicans’ proposal to eliminate the deduction for interest expenses as part of corporate tax reform.

“As Congress works to enact comprehensive tax legislation, the positive reforms made should not be undermined by negative, unintended consequences as a result of eliminating the business interest deduction for agricultural entities,” the groups wrote in a letter earlier this month to House Ways and Means Committee Chairman Kevin Brady (R-Texas) and ranking member Richard Neal (D-Mass.).

The tax reform blueprint that House Republicans released last year proposed eliminating the interest deduction because it would instead allow businesses to immediately write off the full costs of their capital investments. The elimination of the interest deduction has been estimated to raise more than $1 trillion in revenue that can be used to offset cutting tax rates: http://bit.ly/2ru0l38.

World Bank predicts modest economic growth in 2017: The World Bank said Sunday that global economic growth will continue to improve in 2017, partly due to manufacturing and trade developments.

2017’s global forecast of 2.7 percent growth is up three tenths of a percent from its 2016 estimate of 2.4 percent.

The World Bank said the world’s advanced economies were appearing to improve, while emerging markets such as China, Russia, and Brazil were helping to drive growth: http://bit.ly/2ru8N26.

Trump files extension for 2016 taxes: President Trump has filed for an extension on his 2016 tax returns, according to multiple reports Saturday.

It was not immediately clear what reason the president cited for the extension, but he will now have until Oct. 18 to file his taxes – six months from the original filing deadline, ABC News noted.

The extension was first reported by NBC News.

Trump’s personal income taxes have been a source of controversy for the president, who broke with decades of precedent as a presidential candidate by refusing to release his tax returns: http://bit.ly/2qZ6wZr.

Write us with tips, suggestions and news: slane@digital-staging.thehill.com, vneedham@digital-staging.thehill.com, njagoda@digital-staging.thehill.com and nelis@digital-staging.thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill, @NJagoda and @NivElis