Business & Investment

Biden, head of banking regulator, withdraws her nomination

Saule Omarova, Joe Biden choose big head US bank Regulators withdrew her nomination and hit the White House after the White House defended her Pushback From Congress and Wall Street about academic writing and her upbringing in the Soviet Union at the time.

“We have nominated Saul for his deep expertise in financial regulation and his long-standing and respected career as a leading scholar in the private, public and sector,” Biden said in a statement Tuesday. Stated.

“But unfortunately, from the very beginning of her nomination, Saul was exposed to inappropriate personal attacks that went far beyond the pale ones.”

Biden announced in September that it would appoint a law professor at Cornell University, who heads the Office of the Comptroller of the Currency, which oversees the US National Bank.

She then faced backlash from the Republican Party and the banking industry, and critics focused on her upbringing and her recent career as a scholar with proposals, including a state-owned banking account system.

“But at this point in the process, it’s no longer possible for me to continue as a presidential candidate,” Omarova said in a letter that being nominated was a “great honor.”

Born in what is now known as Kazakhstan in an interview with the Financial Times in October, Omarova accused some of the critics of racism and said she was a minority candidate as well as a female. Was targeted.

She said she believed the criticism was motivated by fear of tightening banking regulations rather than her gender and ethnicity.

“What Wall Street banks are worried about is that I’m not one of them, but an independent, aspiring regulator who isn’t being watched over by them,” she told FT. rice field.

Some of the most violent attacks on Omarova came from Republican lawmakers. Louisiana Republican Senator John Kennedy told Omarova at a hearing last month that she didn’t know if she should be called a “professor” or a “comrade.”

Pat Toomey, a senior Republican member of the Senate Banking Commission, said at the time that Omarova would “end banking as we know it,” and she “radical” an undergraduate dissertation on Karl Marx. I criticized it as evidence that it was a choice.

Omarova replied that she was not a “communist” and could not choose where she was born.

However, the skepticism from moderate Democrats revealed at the confirmation hearing has become an important factor jeopardizing her outlook in the Senate, which is evenly divided between Republicans and Democrats. rice field.

Montana Democratic Senator Jon Tester and Virginia Democratic Senator Mark Warner raise concerns during hearings about Omarova’s previous criticisms of aspects of the 2018 bill that deregulated community banks. I have stated.

The tester also questioned her proposal to state-sponsored state investment authorities, who said it could decide which sector of the economy to lend money to.

Toomy said in a statement Tuesday that a “bipartisan consensus” had emerged about Omarova’s belief that the US financial system was inadequate. “I hope the Biden administration will select candidates with a mainstream view of the US economy,” he added.

Supporters of Omarova have accused her of repulsion as a character assassination.

“Despite her unquestionable expertise and bipartisan records, strong interest distorted Professor Omarova’s views and writings,” Sherrod Brown, chairman of the Senate Banking Commission’s Democratic Party, said in a statement Tuesday. “.

“In a relentless smear campaign reminiscent of Red Scare’s McCarthyism, they embarrassedly attacked her family, her heritage, and commitment to American ideals,” he said, OCC “Wall Street.” “I’m not in my pocket,” he added, demanding regulators.

Biden, head of banking regulator, withdraws her nomination

https://www.ft.com/content/6043bc3a-55e6-42a0-87ab-8d80a56dff21 Biden, head of banking regulator, withdraws her nomination

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