Biden bank cop nominee withdraws after pushback from moderate Dems
Saule Omarova’s confirmation process became increasingly unpleasant, with some GOP lawmakers suggesting that the Soviet-born academic had communist sympathies.
President Joe Biden’s choice for a key role policing the nation’s banks withdrew her nomination Tuesday after facing pushback from several moderate Democrats, a rare defeat for the president on one of his personnel choices.
Saule Omarova’s nomination as comptroller of the currency also met with fierce resistance from Republicans and business groups over her advocacy for a dominant role for government in finance, views that didn’t sit well with some Democrats either.
Her confirmation process became increasingly unpleasant, with some GOP lawmakers suggesting that the Soviet-born academic had communist sympathies, an allegation she has vigorously denied.
“I have accepted Saule Omarova’s request to withdraw her name from nomination for the Office of the Comptroller of the Currency,” Biden said in a statement. “I nominated Saule because of her deep expertise in financial regulation and her long-standing, respected career in the private sector, the public sector, and as a leading academic in the field.”
“Unfortunately, from the very beginning of her nomination, Saule was subjected to inappropriate personal attacks that were far beyond the pale,” he said.
Omarova, who if confirmed would have overseen national banks, has repeatedly expressed concern about the size and reach of U.S. megabanks. She has suggested the government could play a greater role in lending to the private sector, and she participated in a 2019 Canadian documentary “A--holes: A Theory,” in which she called banking a “quintessential a--hole industry.”
Those views led to concerns from multiple Democrats, while lawmakers like Sens. Jon Tester of Montana and Mark Warner of Virginia took issue with her opposition to a 2018 law they spearheaded that rolled back regulations on some banks, largely small and regional lenders.
Biden said he would continue to work to find a nominee for the position. Omarova, a law professor at Cornell University, would have been the first person who was not a white man to be confirmed to the role.
“I deeply value President Biden’s trust in my abilities and remain firmly committed to the Administration’s vision of a prosperous, inclusive, and just future for our country,” Omarova said in her withdrawal letter. “At this point in the process, however, it is no longer tenable for me to continue as a presidential nominee.”
Her decision to withdraw extends the drama over who will head the Office of the Comptroller of the Currency, which for now is led on an acting basis by former Federal Reserve official Michael Hsu.
Biden’s initial leading candidate to lead the OCC — former Treasury official Michael Barr — was not nominated after his consideration triggered a backlash from progressive Democrats, who instead pushed law professor Mehrsa Baradaran for the job.
The president also has not yet nominated someone to fill the role of Fed vice chair for supervision, the person who is in charge of financial regulations at the central bank.
Senate Banking Chair Sherrod Brown (D-Ohio), an advocate for Omarova, blasted the “smear campaign” against her, calling it “reminiscent of red scare McCarthyism.”
“One thing is clear: we need regulators at the OCC and beyond who are not in the pockets of Wall Street — public servants who will ensure the economy works for everyone, and who will protect our economic recovery from the risky activities of Wall Street and unregulated tech companies,” he said in a statement. “I will continue to work with the Biden administration to fill these posts that are critical to our economy.”