Sarah Bloom Raskin Withdraws from Top Fed Banking Regulator Nominee

Sarah Bloom Raskin, who was nominated by President Biden for the most powerful banking regulator, withdrew from surveillance on Tuesday as the nomination was opposed by the Republicans and major Democrats.

The withdrawal will have a major impact on the Biden administration, which has struggled to reach financial nominees through an evenly divided Senate. 

The US President, Joe Biden nominated Ms Raskin to be the Federal Reserve’s vice chairwoman of banking supervision, which plays a key role in supervising the largest US financial firms including JPMorgan Chase & Co, Bank of America Corp, and Citigroup Inc.

Ms Raskin previously served on the Fed as a top Treasury Department official during the Obama administration. Before that, she served as Maryland’s state commissioner of financial regulation. Currently, she is serving as a law professor at Duke University. 

It is yet not clear who will be nominated in place of Ms Raskin to be the Fed vice chair of supervision. The administration was previously eying former Consumer Financial Protection Bureau director Richard Cordray for the Fed post.

The protracted delay in filling the top position of the federal government has delayed regulatory policy decisions. Within these themes are significant potential changes about how the Fed counts Treasurys and deposits held in the central bank toward lenders’ so-called supplementary leverage ratio.