Banking Industry Concerned with Comptroller Nominee

She has proposed major changes to the nation’s banking system.

America’s national banking system regulates banks through state or federal charters and regulations. Banks apply for a national charter through the Office of the Comptroller of the Currency or a state charter.

President Biden has nominated Saule Omarova, a Cornell University law professor, to be the new Comptroller of the Currency. She has an academic background unusual in a nominee for high executive office in the U.S. government: As a native Kazakh citizen of the USSR, she attended Moscow State University on a Lenin Scholarship before the fall of the Soviet Union. 

In her history, she has contrasted market economics unfavorably with the USSR’s command economy, and earlier this year she called for the bankruptcy of companies in the oil and gas industries. “We want them to go bankrupt if we want to tackle climate change,” she said. She has also proposed drastic changes to the nation’s dual banking system, calling for the federalization of all of them. She has proposed eliminating the Federal Deposit Insurance Corporation, saying under her plan for changes the FDIC would “have no practical role to play.”

The American Bankers Association, which represents the nation’s largest banks, said her proposal would “undermine the valuable role community banks play in their communities.” Further, they stated, “To abolish the FDIC… would effectively end the dual banking system and break up regional and large banking organizations.”

“We have serious concerns about her ideas for fundamentally restructuring the nation’s banking system, which remains the most diverse and competitive in the world,” they added. “Her proposals to effectively nationalize America’s community banks, and regulatory tailoring based on risk and eliminate the dual banking system are particularly troubling.”

The Senate Banking Committee finished its hearing on her nomination shortly after noon Thursday. They have not yet voted whether to advance her nomination.

As the Lord Leads, Pray with Us…

  • For the Senate committee as they consider the nomination of Saule Omarova to be Comptroller of the Currency.
  • For discernment for Congress in addressing proposed reforms to the nation’s banking system.
  • For U.S. government officials to be slow in the federalization of any industry.

Sources: Wall Street Journal, Just The News, Fox News


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