Eleven Senate Banking Committee Democrats, led by Chris Van Hollen and Raphael Warnock, wrote to Dan Scavino, director of the White House Office of Presidential Personnel, pressing the administration to nominate Democrats to vacant board seats at the SEC, the FDIC, the National Credit Union Administration and the Export-Import Bank, saying that several regulators had no Democrats serving in positions reserved for the minority party.
SENATORS' CONCERN
Lawmakers raised concerns about the political balance at multiple federal financial regulators after Democrats did not occupy seats meant for the minority party, and they urged the administration to nominate replacements for open slots.
"A full slate of commissioners on board members can bring a range of perspectives to policies that shape our markets," the senators wrote.
REGULATORY CONTEXT
At the NCUA, President Donald Trump had attempted to fire the Democratic board members, and those dismissals remain in litigation, Banking Dive reported. The senators also noted that the Commodity Futures Trading Commission and the Federal Trade Commission lack Democratic members, although those agencies fall outside the Banking Committee's jurisdiction.
The senators wrote that, as the SEC, FDIC, NCUA and EXIM "pursue consequential reforms across the economy and financial system", their "lack of Democratic voices thwarts congressional intent".
Van Hollen and Warnock wrote that the administration appeared to have made no effort to nominate Democrats but was reportedly preparing to nominate a Republican to replace SEC commissioner Hester Peirce, who announced in May that she will leave by November to become a law professor at Regent University.
THE SEC SEAT
The senators noted that the Securities Exchange Act requires SEC nominations to alternate between parties "as nearly as may be practicable", and asked Scavino to detail, by June 23, his office's work to nominate Democrats to open board seats.
Sources: Banking Dive; American Banker
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