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Biden’s key banking post candidate Saule Omarova withdraws

Sole Omarova, who chose to oversee the country’s largest bank by President Joe Biden, withdrew her candidacy on Tuesday amid bipartisan opposition to her view of banking regulation.

A law professor at Cornell University and a former George W. Bush Treasury official said in a recently published academic paper that the Federal Reserve provided retail banking accounts to Americans and speculated on the possibility of completely replacing those accounts. In response, the Senate Republican Party expressed fierce opposition. Compete — Private bank deposits. “

If she had been identified as the Office of the Comptroller, Omarova would not have had the authority to implement the ideas proposed in this paper, but the Republicans said that this paper and other past statements were not in its role. He said it suggests hostility to a qualified banking sector.

Within the Treasury, OCC is the leading regulator of nationally licensed banks, including Goldman Sachs Group Inc.
GS,
+ 2.78%
,
Wells Fargo and Company.
WFC,
+ 2.95%

And Bank of America Corporation.
BAC,
+ 1.27%

“Overall, her idea corresponds to the socialist manifestation of American financial services,” said Senator Pat Toomey of Pennsylvania, a Republican member of the Senate Banking Commission, at a confirmation hearing in November. rice field. “She wants to nationalize the banking system, introduce price controls, and build a command-and-control economy in which the government explicitly allocates resources.”

The confirmation hearing was particularly controversial after Louisiana Republican Senator John Kennedy asked Omarova about his childhood relationship with the former Soviet Union’s growth and the Communist Party. Kennedy asked if Omarova was a member of the Soviet Union’s “Communist Youth Organization” and said, “I didn’t know if you were a professor or a comrade.”

“As a strong defender of consumers and a solid defender of the security and soundness of the financial system, Saul is valuable to our important work on behalf of the American people,” Biden said in a statement Wednesday. It would have provided great insights and perspectives. ” “But unfortunately, from the very beginning of her nomination, Saul was exposed to inappropriate personal attacks that went far beyond the pale ones.”

It was the moderate Democratic opposition to Omarova that destined her candidacy. “We have serious concerns about your position in relation to banking regulations in the financial system,” Senator John Tester of the Democratic Party of Montana said in a hearing against a $ 50 billion financial company. He pointed out her criticism of the deregulated 2018 law. And $ 250 billion in assets.

Politico Report last month More than 7 Democrats had “reserved” about Omarova. Given the current 50-50 division between Senate Democrats and Republicans, she would have needed universal support from her party.

Biden’s key banking post candidate Saule Omarova withdraws

Source link Biden’s key banking post candidate Saule Omarova withdraws

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