Senate panel votes to approve Jack Lew's nomination to Treasury

The Senate Finance Committee in a 19-5 vote approved the nomination of Jack Lew to be President Obama’s next Treasury secretary on Tuesday.

Lew, who recently stepped down as Obama’s chief of staff, would replace Timothy Geithner if he is confirmed by the full Senate. Geithner left government service in January. 

The nomination now heads to the full Senate for a vote. On Monday, Senate Majority Leader Harry Reid (D-Nev.) said the vote could come as soon as Wednesday.

Five Republicans voted against Lew: Sens. Chuck Grassley (Iowa), Mike Crapo (Idaho), Pat Roberts (Kan.), Mike Enzi (Wyo.) and John Cornyn (Texas).

Sen. Orrin Hatch (R-Utah), the panel's ranking member, told the committee that he would vote for Lew but that he had serious reservations that had not been assuaged.

“At the outset, let me say I intend to vote in favor,” Hatch said. “Though I would have chosen a different person, I intend to defer to President Obama on his choice of Treasury secretary.” 

Hatch and Grassley had raised questions at Lew's confirmation hearing about his international investments and compensation at New York University and Citigroup. 

“I believe that Mr. Lew has been less than forthcoming about his time at Citigroup and at NYU,” Hatch said on Tuesday. 

Grassley criticized Lew's work at Citibank and NYU in explaining his "no" vote. 

“What we have seen so far is that Mr. Lew has been very good at getting compensated by taxpayer-supported institutions,” he said, noting Citigroup had received a bailout when Lew worked there and that the tax-exempt NYU gave him a preferential home mortgage. 

In replies to the committee this week, Lew said his Cayman Islands investments were not a tax dodge, and revealed he was given a bonus from Citigroup for returning to high-level government service.

Roberts said he would vote against Lew, in part, over concerns about "attacks" on corporate jet manufacturers by the administration, which has often talked about eliminating tax incentives that benefit jet owners.

Opposition to Lew is not as strong as that faced by Defense Secretary nominee Chuck Hagel, and with Democrats in control of 55 Senate seats, it would be difficult for Republicans to stop his nomination. 

With Hatch, GOP Sens. Richard Burr (N.C.), Johnny Isakson (Ga.), Rob Portman (Ohio), John Thune (S.D.) and Pat Toomey (Pa.) voted in favor of Lew.

Lew has been making the rounds to visit Republican senators and pick up support.

On Tuesday, he discussed Iran sanctions issues with Sen. Mark Kirk (R-Ill.), who afterward announced he would vote for Lew's confirmation.

"While I have serious concerns about the administration’s plan to increase spending and raise taxes even higher, Jack Lew is a smart, capable and dedicated public servant who will faithfully execute the office of secretary of the Treasury,” Kirk said after the meeting.

—This report was updated at 3:26 p.m.

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