Senate to press Raskin on nomination to be Fed's top bank cop
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[February 03, 2022]
By Pete Schroeder
WASHINGTON (Reuters) - Sarah Bloom Raskin,
President Joe Biden's pick to lead the Federal Reserve's regulatory
work, will tell lawmakers she believes banks need strict oversight, but
that it is not her job to tell them where to lend.
Raskin will make the case on Thursday for her confirmation as the next
Fed vice chair for supervision, a post that oversees the central bank's
regulatory agenda, before the U.S. Senate Banking Committee. She will
testify alongside Lisa Cook and Philip Jefferson, two of Biden's
nominees to join the Fed as governors.
Raskin, a former Fed governor and senior Treasury Department official
under President Barack Obama, will take on a sweeping agenda at the Fed
if confirmed, with Democrats eager to reestablish tougher rules across
the financial sector.
While progressives were pleased with Raskin's nomination, she will also
need to ensure the support of moderate Democrats in order to be
confirmed in the narrowly divided U.S. Senate.
In her testimony, Raskin vowed to be an attentive, comprehensive bank
watchdog, tracking everything from internal bank risks to cyberattacks.
![](http://archives.lincolndailynews.com/2022/Feb/03/images/ads/current/heartland_lda_NOV2021.png)
"Bank supervisors must make sure that the safety of banks and the
resilience of our financial system are never compromised in favor of
short-term political agendas or special interest groups," she said in
her prepared testimony. "They must stay attentive to risks no matter
where they come from."
Raskin also addressed a concern aired by some Republicans and business
groups that she would take a hard line against oil and gas companies as
the Fed builds out tools to assess financial risks stemming from climate
change.
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![](../images/020322pics/news_e43.jpg)
Sarah Bloom Raskin, in her role as deputy Treasury secretary in
October 2014, participates in an open meeting of the President's
Advisory Council on Financial Capability for Young Americans at the
Treasury Department in Washington, October 2, 2014. REUTERS/Yuri
Gripas/File Photo
![](http://archives.lincolndailynews.com/2022/Feb/03/images/ads/current/2021_lda_Businessdirectory.png) While Raskin has urged regulators to
use their tools available to mitigate climate change that did not
include lending prescriptions, she said in her prepared remarks. She
promised to consult broadly on all matters, including with banks
themselves, when it comes to managing risks.
"The role does not involve directing banks to make loans only to
specific sectors, or to avoid making loans to particular sectors,"
her testimony stated.
Senator Pat Toomey, the top Republican on the banking panel, has
called Raskin an "unacceptable" pick, citing her "hostility" towards
oil and gas companies.
The U.S. Chamber of Commerce, the nation's top business lobby, took
the rare step of raising concerns about her climate change stances
in a letter sent to lawmakers ahead of the hearing.
Raskin's backers are quick to point out the Harvard-trained lawyer's
lengthy experience on regulations, including stints at the Fed and
Treasury in the wake of the financial crisis, as well as her time as
the state of Maryland's chief financial regulator.
And the Fed is already laying the groundwork to gauge the risks
climate change poses to the financial system, building out internal
teams to assess that risk and also pressing banks for details on how
they are mitigating climate change-related risks to their balance
sheets.
(Reporting by Pete Schroeder; Editing by Lincoln Feast.)
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