May 24, 2022

Republicans investigating nominee to the Federal Reserve board of governors

Sen. Jon Tester (D-MT) announced that he has been looking into the potential influence of Sarah Bloom Raskin on the former Fed governor that allegedly allowed her company to secure a lucrative deal. 

A report by Breitbart News indicates that the issues have become before the Senate Banking Committee who has indicated that they will hold an executive session Tuesday to discover more about the subject.

Raskin is nominated to be the vice chairman for supervision and a member of the board of governors of the Federal Reserve, which would give her a regulatory overview of the financial industry.

“Senate Banking Republicans have become increasingly critical of Raskin, as they have claimed she used her position to secure a Fed master account for her company, Reserve Trust,” Breitbart reported.

“Reserve Trust is the only state-chartered fintech company to have a Fed master account. A Fed master account grants access to the Fed’s payment system, and allows the firm to avoid using a third party like other fintech companies have to use.”

Concerns have arisen amongst conservatives, particularly in regard to Rep. Jamie Raskin (D-MD), who is the nominee’s husband, and reportedly violated the Stop Trading on Congressional Knowledge (STOCK) Act by failing to disclose his wife’s $1.5 million stock payout.

“Raskin could not answer 35 questions from Sen. Pat Toomey (R-PA), the Senate Banking Committee ranking member, often saying that she could not recall or was not aware of the situation Toomey asked about,” Breitbart reported.

“Initially I was told there was no there, there, but then my staff said there possibly could be, so I’ve got to download on that. If she was telling people what to do from a Fed standpoint, that’s not good,” he said.

Toomey wrote in a letter to Fed Chairman Jerome Powell regarding Raskin:

If Ms. Raskin had been lobbying Congress on behalf of Reserve Trust she would have had to disclose that fact publicly. But in the Fed’s upside-down world, a former Fed Governor can lobby the Fed on behalf of a particular business, concerning an issue that will financially benefit her and the business, and the public has no right to know.

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