WASHINGTON — Cornell University law professor Saule Omarova has pulled out of the running to become comptroller of the currency after facing stiff opposition from the banking industry and members of Congress.
In a statement Tuesday, President Biden said he had “accepted Saule Omarova’s request to withdraw her name from nomination” and that he will “make an announcement at a future date” on a new nominee.
The New York Times reported Omarova’s withdrawal earlier in the day.
The announcement capped weeks of clashing over the choice to run the Office of the Comptroller of the Currency after Biden named Omarova
She encountered skepticism from the industry, particularly community banks, right out of the gate.
While consumer advocates hailed the nomination, critics pointed to her academic views — including a paper advocating for all customer deposits to be held at the Federal Reserve — as too extreme for someone overseeing the national bank system.
Some Republicans went a step further by speculating that such positions coupled with her having emigrated from the former Soviet Union implied Marxist leanings, but Democrats blasted such claims as baseless.
“As a strong advocate for consumers and a staunch defender of the safety and soundness of our financial system, Saule would have brought invaluable insight and perspective to our important work on behalf of the American people,” Biden’s statement said. “But unfortunately, from the very beginning of her nomination, Saule was subjected to inappropriate personal attacks that were far beyond the pale.”
Still, Omarova’s nomination appeared to be in significant trouble after the Independent Community Bankers of America publicly opposed her confirmation — a rare move for an industry trade group — and key Democratic moderates
Senate Banking Committee Chairman Sherrod Brown, D-Ohio, said in a statement that “powerful interests distorted Professor Omarova’s views and writings.”
“In a relentless smear campaign reminiscent of red scare McCarthyism, they have shamefully attacked her family, her heritage, and her commitment to American ideals,” Brown said.
“One thing is clear: we need regulators at the OCC and beyond who are not in the pockets of Wall Street — public servants who will ensure the economy works for everyone, and who will protect our economic recovery from the risky activities of Wall Street and unregulated tech companies.”
