Scoop: Centrist Dems sink Biden’s nominee for top bank regulator

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Five Democratic senators have told the White House they will not support Saul Omarova to head the office of the Comptroller of the Currency, effectively killing his nomination for the powerful bank-regulatory position.

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why it matters: The blatant opposition of a broad coalition of senators reflects their genuine policy concerns with Omarova, a Cornell University law professor who has attracted controversy for her academic writings about Hemming at big banks.

  • His opposition also hints at the willingness of some Democratic senators to buck the White House on a significant nomination, even if it hands Republicans a political — and symbolic — victory.
  • Republicans have attacked the Kazakh-born scholar in remarkably personal terms, and turned his nomination into a proxy battle over how banks should be regulated.

Running news: In a phone call on Wednesday, Sense. John Tester (D-Mont.) Mark Warner (D-Va.) and Kirsten Cinema (D-Ariz.), all members of the Senate Banking Committee, expressed their opposition to Sen. Sherrod Brown (D-Ohio) — chairman of the panel.

  • They protest against him. Joined by John Hickenlooper (D-Colo.) and Mark Kelly (D-Ariz.).
  • The offices of the five senators either declined to comment or did not immediately respond to a request for comment.
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go in: Biden officials have also heard directly from senators. They are aware of their deep opposition and know that Omarova faces nearly impossible odds of confirmation.

  • Nevertheless, they continue to publicly support him.
  • “The White House continues to strongly support his historic nomination,” a White House official told Nerdshala.
  • “Soule Omarova is remarkably qualified for the position,” the official said. “He’s been treated unfairly since his nomination, like it’s the McCarthy era.”

Omarova tried to defend her candidacy during a hearing last week, Where Republicans saved him for his previous academic writings about how community banks should be regulated.

  • His nomination was reflected in an ugly hearing in which Sen. John Kennedy (R-La.) questioned whether he was called a “professor” or “a native of the former Soviet Union”.Fellow,” became a proxy fight.
  • This split between the banking industry and progressives eager to impose more regulation on it.
  • “The OCC Charter governs and supervises all national banks and federal savings associations, as well as federal branches and agencies of foreign banks,” It says on its website,
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big picture: Now that the president has stared at progressives by re-nominating Jerome Powell for another term as chairman of the Federal Reserve, the ideological tussle between centrists and progressives over economic appointments is about to become more apparent.

  • Elizabeth Warren (D-Mass.) has already indicated that they will work to oppose Powell.
  • Warren endorses another Biden move, raising Fed Governor Lyle Brainard to the position of deputy chairman.
  • With centrists like Tester nominating their favorite Fed candidate for a second term, they may feel more excited to challenge the White House on a lower-level nomination.

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