Senate Banking panel approves Trump's Fed, comptroller nominees

Senate Banking panel approves Trump's Fed, comptroller nominees
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The Senate Banking Committee on Thursday approved the nominations of two of President Trump’s top financial regulator nominees, sending them to the full Senate for consideration.

The panel approved along party lines Randal Quarles to serve as Federal Reserve vice chairman for supervision and Joseph Otting to serve as comptroller of the currency.

Only Sen. Heidi HeitkampMary (Heidi) Kathryn HeitkampSusan Collins set to play pivotal role in impeachment drama Pro-trade group launches media buy as Trump and Democrats near deal on new NAFTA The Hill's Morning Report — Biden steadies in third debate as top tier remains the same MORE (D-N.D.), who is up for reelection in 2018 in a state Trump won by large margin in the presidential elecition, voted with all Republicans to approve Otting. Sens. Jon TesterJonathan (Jon) TesterPelosi set to send impeachment articles to the Senate next week Pelosi says she'll send articles of impeachment to Senate 'soon' Pressure building on Pelosi over articles of impeachment MORE (D-Mont.), Joe DonnellyJoseph (Joe) Simon DonnellyGinsburg health scare raises prospect of election year Supreme Court battle Watchdog accuses pro-Kavanaugh group of sending illegal robotexts in 2018 Lobbying world MORE (D-Ind.), Chris Van HollenChristopher (Chris) Van HollenOvernight Defense: GAO finds administration broke law by withholding Ukraine aid | Senate opens Trump trial | Pentagon to resume training Saudi students soon GAO finds Trump administration broke law by withholding Ukraine aid Lobbying World MORE (D-Md.) and Mark WarnerMark Robert WarnerHillicon Valley: Apple, Barr clash over Pensacola shooter's phone | Senate bill would boost Huawei alternatives | DHS orders agencies to fix Microsoft vulnerability | Chrome to phase out tracking cookies Senators offer bill to create alternatives to Huawei in 5G tech Sen. Warner calls on State Department to take measures to protect against cyberattacks MORE (D-Va.) voted with Heitkamp and all Republicans to approve Quarles; Tester and Donnelly are both up for reelection next year in states Trump won.

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Quarles and Otting should face little difficulty clearing the GOP-controlled Senate. The two will play major roles in the Trump administration’s efforts to reshape financial regulation and “dismantle” the Dodd-Frank financial reform law.

Quarles, the undersecretary of domestic finance at the Treasury Department during the lead-up to the financial crisis, would oversee the Fed’s regulatory policy as the bank prepares for several high profile departures. Federal Reserve Chairwoman Janet Yellen is expected to leave the bank by February, and Vice Chairman Stanley Fischer announced Wednesday his plans to resign next month.

The departure of Yellen and Fischer, who have steered the Fed toward gradually normalizing interest rates, could widen the ideological divide between the banks’ more liberal governors and Trump’s conservative picks.

Senate Banking Committee Chairman Mike CrapoMichael (Mike) Dean CrapoDrug price outrage threatens to be liability for GOP It's time for the Senate to advance cannabis banking reform On The Money: Senate chairman opposes cannabis banking bill | Panel advances Trump pick for Small Business Administration | Judge tosses NY state fraud charges against Manafort MORE (R-Idaho) said it was imperative that the full Senate confirm Quarles before Fischer steps down, so the Fed board can maintain a quorum.

Otting would lead the Office of the Comptroller of the Currency, which leads the federal government’s efforts to foster bank security and stability. Otting was the president and CEO of OneWest Bank, where he worked with Treasury Secretary Steven MnuchinSteven Terner MnuchinOn The Money — Presented by Wells Fargo — Senate approves Trump trade deal with Canada, Mexico | Senate Dems launch probe into Trump tax law regulations | Trump announces Fed nominees Senate Democrats launch investigation into Trump tax law regulations Treasury watchdog to investigate Trump opportunity zone program MORE and presided over hundreds of thousands of foreclosures.

Democrats criticized Otting for his tenure at OneWest bank, which has been investigated for multiple federal and state housing violations.

Otting defended his career, saying his experiences “touched virtually every segment of the industry,” including work at banks of all sizes.