These nominations demonstrate the president’s continued commitment to advancing financial security for underserved people and communities. We know she will bring this same commitment to her new position on the FRB, and that she will ensure the needs of low- and moderate-income Americans are a priority as we continue to recover from the Covid pandemic. During her tenure in the Treasury Department, Sarah Bloom Raskin served as an outstanding voice for all consumers, defended safeguards in the marketplace and looked for new ways to bring us closer to a just economy. “We applaud the nominations of Sarah Bloom Raskin as Federal Reserve Board Vice Chair for Supervision, and Lisa Cook and Philip Jefferson as Governors. Jesse Van Tol, President and CEO of the National Community Reinvestment Coalition (NCRC), made the following statement: I guess they have revolving principles.President Biden today nominated former Treasury Department Deputy Secretary Sarah Bloom Raskin to serve as the Vice Chair for Supervision of the Federal Reserve Board and Lisa Cook and Philip Jefferson as Governors.
Yet now, faced with what may be the clearest opportunity in some time to do something about it, they’re looking the other way. They have made public careers out of condemning the revolving door between federal regulators and Wall Street. Regardless, Warren and Brown’ double standard is obvious. There are many reasons, after all, to doubt the efficacy of the existing U.S. If Warren and Brown want to reduce those profit opportunities, they could craft legislation to create simple, straightforward rules. Tons of people lobby government agencies, both before and after working for those agencies.Īs I argued in 2014, the more expansive the Fed’s role, and the more complex the rules and regulations, the more lucrative the revolving door will remain. It makes matters even worse for Warren and Brown that Raskin recently served on the board of Reserve Trust, a fintech firm that had trouble getting a master account at the Fed until after Raskin personally called Kansas City Fed President Esther George.įor the record, it remains unclear whether Raskin even did anything shady. I could be wrong, but I don’t recall Warren supporting anything like that–a mere promise not to be corrupt in the future–back in 2014. Rather than block her nomination–a surefire way to “slam shut this revolving door”–Warren asked for no more than “ significant ethics commitments” from Raskin (and the administration’s two other Fed nominees).
It seems that the same set of standards do not apply to Raskin. We need to slam shut this revolving door & I've got a bill to get it done. Randall Quarles was a high-level policymaker at the just a few months ago, but now he's back to work at his private equity firm in the financial sector. Of Quarles’ decision to return to the private equity firm he helped start, she said: This is corruption, plain & simple. For instance, she recently took to Twitter to chastise Randy Quarles, the outgoing Fed Vice Chair for supervision, for beating a retreat through the revolving door. Senator Warren, on the other hand, will have a tougher time blaming such memory issues. He announced that “With these nominees, President Biden is showing the country what a Federal Reserve standing on the side of workers and their local communities looks like.”Īpparently, Brown has forgotten that he had a problem with the revolving door. Instead, Brown was thrilled with the nomination. Surely this was a time to stop the revolving door. Prior to her time at the Fed, Raskin “was one of Promontory’s first managing directors, having first joined the firm shortly after its founding.” From 2010 to 2014, Raskin was a Federal Reserve Board Governor. From 2014 to 2017, Raskin served as a deputy secretary in the U.S. President Biden has nominated Sarah Bloom Raskin to be the new Vice Chair for Supervision at the Federal Reserve.Īccording to their website, Raskin is currently the Vice Chair of Promontory’s Advisory Board. He also lamented that “With such a potential for cognitive capture and the influence of the revolving door, bright line rules are essential.”įast forward to January 2022. Brown was particularly disturbed by “the lack of transparency and disclosure” in the relationship.
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