Citigroup, the largest US bank in Russia, will take out more business.
Sen. Joe Manchin III, a key centrist Democrat, announced on Monday that he would not endorse Sarah Bloom Raskin for a top job at the Federal Reserve, potentially reducing her chances of confirmation as Republicans show little appetite for put a supporter of stricter banking regulations in the powerful role.
Without Republican support in the equally divided Senate, Democrats need all 50 senators who form a caucus with their party to vote for Ms. Raskin to become the Federal Reserve’s deputy overseer. Republicans have so far blocked his committee nomination, raising concerns about his stance on climate regulation and his work in the private sector.
“His previous public statements have not satisfactorily addressed my concerns about the critical importance of funding a comprehensive energy policy to meet our nation’s critical energy needs,” Manchin said in a statement. “I have come to the conclusion that I am unable to support his nomination as a member of the Federal Reserve Board.”
He added that “the Federal Reserve Board must remain extremely focused on ending inflation taxes that hurt working families and getting more workers off the fringes and back into the economy.”
Without his support, Ms. Raskin, a former Fed governor and Obama administration official, is unlikely to get the votes needed to clean up the Senate unless a Republican breaks ranks and votes to support her. .
“Manchin’s decision is very likely to doom Raskin’s appointment,” wrote Ian Katz, managing director of Capital Alpha Partners, in reaction to the news. “We wouldn’t be surprised if Raskin steps down in the next week or two – maybe sooner.”
The White House pledged Monday to pursue her nomination, with a spokesperson pointing to Ms Raskin’s qualifications and outside support.
“She has won broad support in the face of an unprecedented and baseless campaign by oil and gas companies that have sought to tarnish her distinguished career,” said spokesperson, Chris Meagher. “We are working to align the bipartisan support she deserves, so she can be confirmed by the Senate for this important position.”
.@SBloomRaskin is one of the most qualified people to ever be appointed to the Federal Reserve Board of Governors – she previously served on the Board and she was second in command at the Treasury, two positions where she earned bipartisan Senate confirmation .
— chrismeagher46 (@chrismeagher46) March 14, 2022
Lawmakers on the Senate Banking Committee are at odds over Ms. Raskin’s nomination. Republicans boycotted a hearing that would allow committee Democrats to advance a whole slate of key banking nominations, including the renomination of Fed Chairman Jerome H. Powell, over objections to Ms. Raskin’s selection. .
Sen. Patrick J. Toomey of Pennsylvania, the top Republican on the committee, highlighted his opposition to Ms. Raskin and her past comments on climate regulations in a statement Monday.
“As we’ve said repeatedly, Republican members of the Banking Committee are ready to vote on the other four Fed nominees,” Toomey said. Referring to Senator Sherrod Brown, Democrat of Ohio and chairman of the committee, he added, “I hope President Brown will immediately move forward with scheduling a vote for this week.”
Republicans, in boycotting Ms. Raskin’s nomination, 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 how much Ms Raskin’s involvement helped Reserve Trust secure the Fed’s account. But the episode raised questions because she previously worked at the Fed and because she earned about $1.5 million from stock given to her for her Reserve Trust job. His own party regularly blows up the revolving door between regulators and financial firms.
Republicans have demanded Ms Raskin provide more answers about what happened while she was on the company’s board, but she has widely said she doesn’t remember what happened. was passed, drawing criticism from lawmakers. Mr. Toomey led his fellow Republicans in refusing to show up to vote on Ms. Raskin and the other Fed nominees until she provided more answers.
If she can’t get all the Democratic votes, the question is probably moot.
“Now that it’s clear that Sarah Bloom Raskin has no path to confirmation, it’s time for the Senate Banking Committee to move forward with the other four nominees, as Republicans on the committee have been pushing for weeks.” , wrote Senator Thom Tillis, Republican of North Carolina, on Monday. on Twitter.
In addition to Mr. Powell, who goes by the name Jay, Mr. Biden has named Lael Brainard as Fed vice-chairman and two academic economists — Philip Jefferson and Lisa Cook — as governors.
“It effectively kills his nomination,” Evercore ISI’s Tobin Marcus wrote after the news, adding that it “likely paves the way for Biden’s other Fed nominees — Jay Powell, Lael Brainard, Lisa Cook and Philip Jefferson — to move forward and be vindicated. ”
The Senate has only ever confirmed one Vice Chairman in charge of oversight at the Fed, Randal K. Quarles, whom President Donald J. Trump nominated. Before Mr. Quarles, Daniel Tarullo, a Fed governor, unofficially held the position for years. The position was created by the Dodd-Frank Act of 2010.
The White House made it clear on Monday that it was still focused on getting Republican votes for Ms. Raskin’s nomination, and other leading Democrats continued to hold out hope.
“The solution is to get Republicans to support her,” said Sen. Elizabeth Warren of Massachusetts, who sits on the Banking Committee and has been one of Ms. Raskin’s supporters. “They’ve all supported her the last two times she’s been nominated. She’s been at the Fed; she’s been at the Treasury.
But centrist Republican senators who might have been seen as likely sources of support for Ms Raskin – including Senators Lisa Murkowski of Alaska and Susan Collins of Maine – said Monday they would not support her. Ms Murkowski called her candidacy “flawed”. While Ms Collins said she spoke to Ms Raskin on Monday, she said: ‘I think it’s clear from Joe Manchin’s statement this morning that there is no way forward for her.