Saule Omarova withdraws after Senate fight over her background

President Joe Biden announced on Tuesday that Saule Omarova’s nomination to lead the Office of the Comptroller of the Currency would be withdrawn, citing stiff opposition in the Senate from Republican lawmakers, who critiqued her vision for banking regulation and her birthplace in the former Soviet Union.

In a statement, the president said he accepted a withdrawal request from Omarova, a law professor at Cornell University who was born in Kazakhstan in the Soviet Union and moved to the United States in 1991.

Also Read| In pics: US marks Pearl Harbor remembrance day 2021

She answered questions regarding increased government control of the financial sector during Senate committee hearings last month. That prompted Republican Sen. Pat Toomey of Pennsylvania to brand her views a socialist manifesto, and Republican Sen. John Kennedy of Louisiana to declare, “I’m not sure whether to call you professor or comrade.”

In a statement announcing her withdrawal, Biden supported his choice.

“Saule would have offered essential insight and perspective to our critical work on behalf of the American people as a strong advocate for consumers and a staunch defender of the safety and soundness of our financial system,” the president added.

Unfortunately, Saule was exposed to improper personal insults that were way over the pale from the beginning of her nomination. However, the withdrawal of the nomination indicated that Omarova lacked some of the necessary Democratic support to clear the Banking Committee and face a Senate-wide vote.

During her confirmation hearing, Senator Jon Tester of Montana had severe doubts about Omarova’s candidacy, citing her opposition to a bipartisan bill that loosened some of the constraints imposed on banks following the 2008 financial crisis.

Also Read| Joe Biden calls European leaders ahead of his meeting with Vladimir Putin

Omarova published a paper last year pushing for a banking system revamp that would increase the Federal Reserve’s involvement by allowing the central bank to hold customer deposits.

This might displace one of the duties of private banks, which is a key criticism leveled at her by her adversaries. Supporters of the plan argue that the Fed could offer credit to individual accounts more swiftly when needed during economic downturns.