Maryland State Regulator Nominated to Fed Governors Appears Before Senate Committee
July 21, 2010 Sarah Bloom Raskin, the commissioner of the Maryland Office of Financial Regulation, faced the Senate Banking Committee recently for her nomination to the Federal Reserve Board of Governors (the Fed).
She appeared with two other Fed nominees, Janet Yellen and Peter Diamond, for questioning by the Committee. Raskin has served as head of the Maryland agency since 2007, previously serving as a counsel to the Senate Banking Committee, the same Committee she appeared before at the July 15 hearing.
During the hearing proceedings, Raskin was asked about the current economic crisis and what lessons regulators have learned from the recent events. She replied that a "critical lack of capital" and "a misjudgment of asset quality" were partly to blame, as well as predatory behavior in the financial services arena.
She was also asked for her opinion on the challenges the Fed will face as they implement the just- passed Dodd-Frank Act, a comprehensive bill to reform America's financial system. Raskin replied that the Fed will have to achieve an enhanced, consolidated supervision approach and construct a plan for large institutions.
When addressing her qualifications for the role, Raskin highlighted her experience as a state regulator and the benefit of understanding how federal regulation impacts institutions on the state and local level.
Her nomination awaits a vote by the Senate Banking Committee. If approved, it will then go the full Senate for a vote. NASCUS congratulates Raskin on the nomination and looks forward to continuing our relationship with her as she moves to a new role from the state regulatory system.