(Dec. 10, 2021) A new candidate for a permanent appointment as comptroller of the currency will have to be found by the Biden Administration after the most-recent nominee, Saule T. Omarova, bowed out of consideration.
In a letter, Omarova said she appreciated President Joe Biden’s (D) nomination of her to lead the Office of the Comptroller of the Currency (OCC), but wrote that “at this point in the process, however, it is no longer tenable for me to continue as a Presidential nominee.”
Omarova, a Cornell University law professor and veteran of the Treasury Department under President George W. Bush (R ), had proven to be a controversial nominee to lead the federal bank regulator. Industry opposition was intense (based on some of her past writings that included suggesting the Federal Reserve consider offering some banking services), and her nomination ran into particular trouble during a hearing last month before the Senate Banking Committee, where she faced intense questioning from Republican senators, described as rude and condescending by some.
Biden accepted the withdrawal but took notice of the opposition Omarova faced. “Unfortunately, from the very beginning of her nomination, Saule was subjected to inappropriate personal attacks that were far beyond the pale,” Biden said in a statement.
For the time being (and until a new nominee is found), the OCC will continue to be led by Acting Comptroller Michael Hsu, who this week named a new chief of staff (Lauren Oppenheimer).
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(Nov. 19, 2021) Flexibility for board meetings originally extended to FCUs during the height of the coronavirus crisis will be extended in the new year, NCUA said this week. In Letter to Federal Credit Unions (LTCU) 21-FCU-06, the agency said a federal credit union (FCU), as allowed for in March of last year, may adopt at any time by a two-thirds vote of its board of directors a bylaw amendment allowing the board to meet virtually. The provision was approved by the agency in response to person-to-person limits on meetings during the coronavirus crisis … The use of stablecoins deserves a look – and issuance should be broader than just that by banks and credit unions – Federal Reserve Board Gov. Christopher Waller said this week. Referring to a report issued Nov. 1 by the President’s Working Group on Financial Markets that advocated only federally insured financial institutions could issue the digital payments, Waller said “there may be others that better promote innovation and competition while still protecting consumers and addressing risks to financial stability.” He said he disagrees that stablecoin issuance can or should only be conducted by federally insured banks credit unions “simply because of the nature of the liability … The controversy over OCC Nominee Saule T. Omarova (who faced a confirmation hearing Thursday) was illustrated by competing headlines issued in advance by the top Democrat and Republican members of the Senate Banking Committee. The headline of the press release issued by Chairman Sherrod Brown (D-Ohio) stated “Saule Omarova is Eminently Qualified to Lead the OCC.” The headline of the release issued by Ranking Member Pat Toomey (R-Pa.) stated: “I’ve Never Seen a Nominee with More Radical Ideas.” The banking industry has also expressed skepticism about the nominee. Omarova told the panel her priorities would be helping small- to medium-sized banks invest locally.
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Federal Credit Union Meeting Flexibility in 2022 Due to the COVID-19 Pandemic
Witness statement: Dr. Saule T. Omarova (Comptroller of the Currency Designate)