WASHINGTON Dec 13 A U.S. Senate committee
backed Federal Reserve Governor Sarah Bloom Raskin on Friday to
be the Treasury Department's No. 2 official, sending the
nomination to the full Senate where final approval looks likely.
The Senate Finance Committee voted by voice vote in favor of
the nomination. It is not clear how soon the full chamber will
take it up.
A former Maryland banking regulator, Raskin is expected to
be a central figure in the roll-out of new Wall Street
regulations aimed at preventing future financial crises.
U.S. regulators have only finalized about 40 percent of the
nearly 400 rules required by the 2010 Dodd-Frank Wall Street
reform law, law firm Davis Polk estimated in December.
"She has an enormously full plate in front of her," said
Harvey Goldschmid, a former commissioner at the Securities and
Raskin is expected to help coordinate the Financial
Stability Oversight Council, or FSOC, a body of regulators
created by Dodd-Frank to police systemic risks in the financial
Treasury Secretary Jack Lew chairs the FSOC, which is in the
process of deciding which firms need stricter regulations
because they could start a crisis if they failed.
One pending decision is how to treat three insurance
companies which were designated as systemically important
earlier this year.
Raskin told lawmakers in November that systemically
important insurance companies should not face the same capital
rules as banks.
A 52-year old lawyer by training, Raskin would be the
highest-ranking woman in the Treasury's history. She has served
on the Fed's board since 2010, and was outspoken about the need
for mortgage servicers to end illegal foreclosure practices and
fix other problems in their business.
Lew pushed Raskin as his ideal deputy, given her management
and banking experience, a source familiar with the matter told
Reuters after the White House picked her for the post in July.
She would replace Neal Wolin, who stepped down in August.