Biden removes Sarah Bloom Raskin from Fed Top Bank Cop nomination

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Saule Omarova, a professor at Cornell Law School who critics called a communist after Mr Biden chose her to lead the Office of the Comptroller of the Currency, withdrew her candidacy late last year.

Opponents of Ms Raskin’s confirmation were aimed at more than her views on the climate. They also took issue with the work she has done in the private sector – and the way she answered questions about that work.

Republicans had specifically cited concerns about Ms Raskin’s time on the board of a fintech company. The company, Reserve Trust, secured a coveted account with the Fed – giving it access to services it now advertises – after Ms Raskin allegedly called a central bank official to intervene on its behalf.

It’s unclear to what extent Ms Raskin’s involvement actually helped. But the episode raised questions because she used to work at the Fed and because she earned around $1.5 million from stock she earned for her Reserve Trust job. Democrats regularly denounce the revolving door between regulators and financial firms.

Republicans had demanded that Ms Raskin provide more details about what happened while she served on the company’s board, but she had widely said she could not remember. Senator Patrick J. Toomey of Pennsylvania, the top Republican on the committee, led his colleagues to refuse to show up to vote on Ms. Raskin and the other Fed nominees until she provided more answers.

Mr. Toomey signaled on Monday that he would welcome the other Fed nominees continuing.

Sherrod Brown, a Democrat from Ohio and chairman of the Senate Banking Committee, said in a statement Tuesday that he would arrange a bump for the other candidates, and later told reporters he could move them as early as this week. .

“Unfortunately, the American people will be denied a thoughtful, experienced public servant who was prepared to fight inflation, stand up to Wall Street and vested corporate interests, and protect our economy from foreign cyberattacks and climate change.” , Mr. Brown said in his statement.

Several more progressive Democrats expressed disappointment that Ms. Raskin was not confirmed.

“Lobbyists have power on Capitol Hill, and when they see their power threatened, they fight back fiercely – Sarah Bloom Raskin is just the latest casualty,” Senator Elizabeth Warren, Democrat of Massachusetts, said in response. at the news.

Michael D. Shear contributed report.

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