Biden’s pick for Treasury post sought end to banking ‘as we know it’

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President Biden’s controversial pick to be the Treasury Department’s comptroller of the foreign money is a USSR-born and educated professor who has praised the previous Soviet Union’s lack of a gender pay hole whereas not too long ago advocating for ending banking “as we know it” by transferring Americans’ funds from personal banks to the Federal Reserve. 

Saule Omarova, a Cornell University regulation professor, was tapped by the president Sept. 23 to oversee the nation’s largest banks and federal financial savings associations, with the White House calling her “one of the country’s leading academic experts on issues related to regulation of systemic risk and structural trends in financial markets.”

If authorized, Omarova could be the primary feminine and non-white individual within the position. 

Her nomination has sparked criticism from Republicans, who say she is searching for to “radically reshaping the basic architecture and dynamics of modern finance” — and reportedly Janet Yellen, Biden’s Treasury secretary raised considerations about her taking the post.

In an early 2021 paper titled “The People’s Ledger,” Omarova argued for making personal banks “non-depository lenders,” altering banking “as we know it.” 

Omarova was picked to be the Treasury Department’s comptroller of the foreign money.

“Banks, in other words, will not be ‘special’ any more,” she wrote, advocating for separating their lending operate from their financial operate. 

“Once banks lose their “special” standing and entity-based entry to the general public subsidy, they may inevitably lose their enchantment as potential acquisition targets for different monetary establishments,” she added.

Omarova echoed these sentiments in a 2019 documentary movie known as “A**holes: A Theory,” the place she known as Wall Street’s tradition a “quintessential a–hole industry,” according to the Daily Mail. 

Shortly following her nomination, Sen. Pat Toomey (R-PA), the ranking member on the Senate Banking Committee, mentioned he had “serious reservations about her nomination.” 

“Ms. Omarova has called for ‘radically reshaping the basic architecture and dynamics of modern finance’ including nationalizing retail banking and having the Federal Reserve allocate credit,” he mentioned in an announcement. 

“She has also advocated for ‘effectively end[ing] banking as we know it.’ In light of these, and other extreme leftist ideas, I have serious reservations about her nomination.”

Rep. Patrick McHenry (R-NC), rating member on the House Financial Services Committee, additionally shared reservations, calling out Biden for “placating his radical base” with the nomination.

“President Biden is once again placating his radical base by nominating Saule Omarova as the head of the OCC,” McHenry said. “I am concerned Professor Omarova will prioritize a progressive social agenda over the core mission of the OCC — supervising and managing risk in our financial system.” 

Rep. Patrick McHenry expressed considerations over Biden’s pick.
Al Drago/Pool through AP

“Our financial regulators must focus on pro-growth policies that foster innovation to build a robust and inclusive economic recovery, rather than Democrats’ obsession with vague social objectives.”

Yellen, too, was skeptical in regards to the nomination, according to the Wall Street Journal. 

Omarova has been slammed previously for showing to reward and help Soviet Union beliefs.

In 2019, she posted to Twitter in help of the “old USSR” the place there was “no gender pay gap.” She tried to do injury management after being criticized for it, however failed to absolutely condemn the Soviet Union. 

“I never claimed women and men were treated absolutely equally in every facet of Soviet life. But people’s salaries were set (by the state) in a gender-blind manner. And all women got very generous maternity benefits. Both things are still a pipe dream in our society!” she wrote.  

Omarova was born in Kazakhstan within the former Soviet Union and moved to the U.S. in 1991 to pursue her Ph.D. on the University of Wisconsin.

Despite the criticism, the professor has garnered help, notably from Sen. Elizabeth Warren (D-Mass.), who has known as the nomination “tremendous news.” 

“She is an excellent choice to oversee and regulate the activities of our nation’s largest banks and I have no doubt she’ll be a fearless champion for consumers,” Warren mentioned in a Facebook assertion.

On the left, Sen. Elizabeth Warren applauded Biden’s choice.
Patrick Semansky, Pool/AP

Senate Banking Committee Chair Sen. Sherrod Brown (D-Ohio) praised the professor’s expertise as a “policymaker, in the private sector, and in academia,” urging his colleagues to help the nomination. 

“Her experience as a policymaker, in the private sector, and in academia will allow her to work with stakeholders across our financial system to ensure the economy works for everyone, and to protect our economic recovery from the risky activities of Wall Street and other bad actors,” Brown said. 

“I call on my colleagues on the Banking and Housing Committee to support this historic nominee to this position critical to our economy.”