Senate Banking Committee advances Fed, other nominees

By Peter Schroeder - 03/29/12 12:12 PM ET

A handful of key financial regulatory spots took one step closer to being filled Thursday, after members of the Senate Banking Committee approved a set of President Obama’s nominees.

But two GOP dissenting votes on a pair of the nominees suggests the president’s efforts to fill open spots on the Federal Reserve could be prolonged.

Members of the Banking Committee unanimously approved Obama’s picks of Jeremiah Norton to join the Federal Deposit Insurance Corporation, Richard Berner to serve as director of the Office of Financial Research and Christy Romero to serve as the government’s official watchdog for the Troubled Asset Relief Program (TARP).

The panel also approved of Jeremiah Powell and Jeremy Stein joining the Federal Reserve Board as governors, but not before two GOP senators — Jim DeMint (S.C.) and David Vitter (La.) — lodged their objections. The two were not present for the vote, but their request was made by Sen. Richard Shelby (R-Ala.), the committee’s ranking member, on their behalf.

Vitter said in a statement beforehand that he planned to oppose the picks, arguing they would not challenge Fed Chairman Ben Bernanke enough.

“I refuse to provide Chairman Bernanke with two more rubber stamps who approve of the Fed’s activist policies,” Vitter said.

Thursday’s vote set the stage for what Democratic aides hope could be the swift confirmation of the picks to fill banking regulatory seats before lawmakers take off Friday for a two-week recess.

Norton’s nomination could be packaged with fellow FDIC nominees Martin Gruenberg and Thomas Hoenig, as well as Thomas Curry, who has been nominated to serve as the next comptroller of the currency, an aide said. Those three nominees received committee approval back in September, but have yet to be approved by the full Senate.

Gruenberg is currently serving as the acting chairman of the FDIC, and previously served as the second-ranking member on the regulator before being nominated to fill the top spot following the departure of Sheila Bair. Hoenig, a Republican who previously headed the Federal Reserve Bank of Kansas City, Mo., would serve as vice chairman if confirmed.

Curry would fill the top spot at the Office of the Comptroller of the Currency, which has been vacant since August, when John Dugan completed his five-year term. John Walsh has been serving as acting director.

If no senators object, the nominees could be quickly confirmed by the chamber via unanimous consent.

But with DeMint and Vitter on the record against the two Fed nominees, the path forward is murkier. Currently, the Fed is operating at reduced strength, with just 10 of 12 voting members of the policy-setting Federal Open Market Committee.