Bloom Raskin Lobbied KC Fed President for Fintech Firm

Sarah Bloom Raskin, President Biden’s nominee to serve as the regulator of the Federal Reserve, called Kansas City Federal Reserve Bank President Esther George in 2017 to personally advocate for financial technology firm Reserve Trust, CNBC reports.

CBNC says it verified the information from Senator Pat Toomey, R-Penn., who is the ranking member of the Senate Banking Committee.

Reserve Trust, of which Bloom Raskin was a board member, was seeking access to the central bank’s payments system. The Federal Reserve granted Reserve Trust access to the master account in 2018, upon its second request.

Bloom Raskin was grilled by Senate Republicans a week ago during her confirmation hearing to become the vice chairman of supervision at the Federal Reserve. In those hearings, Sen. Cynthia Lummis, R-Wyo., asked Bloom Raskin whether she had ever lobbied on behalf of Reserve Trust. Bloom Raskin declined to answer the question.

When Raskin stepped down from the board of Reserve Trust in 2019, she sold her financial stake in the company for about $1.5 million, CBNC says.

Reserve Trust touts its Federal Reserve master account on its website, saying it is the “first fintech trust company with a Federal Reserve master account” as opposed to an account with correspondent or sponsor banks.

The White House this week defended its selection of Bloom Raskin for the key Fed position and called Lummis’ accusations of impropriety “innuendo, with no facts presented to back up her false claims.”

Lummis has railed against the “revolving door” that exists between politics and the corporate world, saying it is purely motivated by profits.


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