Republican senators grilled President Biden’s Soviet-born choice to lead a key branch of the Treasury Department during her confirmation hearing Thursday, with one saying he had “never seen a more radical nominee to be a federal regulator.”
Saule Omarova, nominated by Biden to be comptroller of the currency in September, has come under fire for past statements — most notably in a paper titled “The People’s Ledger” that advocated for ending banking “as we know it” by making private banks “non-depository lenders” and moving Americans’ money to the Federal Reserve.
Omarova claimed to members of the Senate Banking Committee on Thursday that the “end banking as we know it” comment was “actually my quoting a title, the title of a book that someone else wrote.”
In his opening remarks, committee ranking member Pat Toomey (R-Pa.) accused Omarova of a “long history of promoting ideas that she herself describes as ‘radical.’ I agree that they’re radical and they can fairly be described also as socialist.”
“She has a plan for the government, through the Fed, to replace the free market and setting what she calls, and I quote, ‘systemically important prices,’ end quote,” Toomey went on. “But these are things she listed — these are things like wages, energy. And since the administration has done such a great job on inflation, I’m sure Americans can’t wait until the Fed starts directly controlling prices for eggs and milk and rent.”
Toomey also noted a 2019 tweet from Omarova in which she extolled the “old USSR” where there was “no gender pay gap.”
During the question period, Toomey asked Omarova if she still supported housing deposits with the Federal Reserve.
“Senator, what I’m trying to clarify here is the problem this paper was trying to solve,” argued Omarova, saying that her job as an academic “was to expand the boundaries and outline potential options for Congress to consider.”
“This is entirely up to Congress whether or not to go that route,” she went on.
“But this is what you recommended,” Toomey shot back, “and it doesn’t seem to be a coincidence that every one of these thought experiments or academic ideas … involved dramatic expansion in the power and control of the central government to allocate resources, to control banking, and a corresponding diminution in the freedom of individual Americans and institutions.
“To suggest now that maybe you’re not really for these things,” the Pennsylvanian added. “It’s hard to believe this.”
Sen. John Kennedy (R-La.) took a jab at Omarova’s background, asking whether she had ever resigned her membership in the Young Communist Union before telling her: “I don’t know whether to call you professor or comrade.”
“I’m not a communist,” Omarova responded. “I do not subscribe to that ideology. I could not choose where I was born.”
The Cornell Law professor went on to denounce the Soviet regime, saying “we can never have a repetition of that communist system anywhere in the world.”
After Kennedy’s time had expired, committee chairman Sherrod Brown (D-Ohio) attempted to rebuke his colleague over his line of questioning.
“I’m entitled to ask my questions,” Kennedy fired back. “It’s called senatorial courtesy.”
“Senatorial courtesy is also not doing character assassinations,” Brown rejoined.
“Well, that’s your opinion, that’s not my opinion,” Kennedy said.
Shortly before Kennedy’s remark, Sen. Tim Scott (R-SC) told Omarova he could not “think of a nominee more poorly suited to be the comptroller of the currency based solely on [her] public positions, statements and the weight of [her] writings.”
Scott again challenged Omarova’s attempt to walk back her “quite disturbing” statements in “The People’s Ledger.”
“This is not a position that you took years ago, this is something that you spoke to this year,” said Scott, before proclaiming that nothing she could say during the hearing would “undo” what she has already said.
Republicans are not the only ones concerned about Omarova’s nomination. Sen. Jon Tester (D-Mt.) told the nominee he had “significant concerns” about her policies and criticized the nominee for her previous opposition to a bipartisan regulatory relief he wrote in 2018.
However, another Democrat on the committee, Elizabeth Warren of Massachusetts, described the controversy as “a vicious smear campaign, coordinated by Republicans who are doing the bidding of the large banks.”
With Post wires.