Comptroller of the Economy – The Wall Street Journal

Solly Omarova


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Senate Committee on Banking, Housing, and Urban Affairs

President Biden checked another progressive identity box last week by nominating Saul Omarovia as the currency controller. Some Trump appointees have been mocked for supporting the abolition of their agencies. Ms. Umarova wants to abolish the banks that are set to regulate them.

The radical ideas of the Cornell Law School professor might make even Bernie Sanders blush. She graduated from Moscow State University in 1989 with a personal Lenin Academic Scholarship. Thirty years later, she still believed that the Soviet economic system was superior, and that American banks should be replenished in the image of Gosbank.

“Until I came to the United States, I would have never imagined that things like the gender pay gap still existed in today’s world. Say what you want about the old Soviet Union, there was no gender pay gap. I tweeted in 2019. After that, I didn’t The market has always ‘knows the best’

Twitter

Users criticized her ignorance, adding a warning: “I have never claimed that women and men were treated exactly equal in every aspect of Soviet life. But people’s salaries were determined (by the state) in a gender-insensitive way. All women received generous maternity benefits. Both things are still a distant dream in our society!”

Sure, there was a gulag, and no private property, but maternity benefits!

Ms. Umarova believes that asset prices, wage schedules, capital and credit should be dictated by the federal government. In two papers, she called for expanding the Fed’s mandate to include price levels for “system-critical financial assets” in addition to workers’ wages. As they like to say in the modern university, from each according to his ability to each according to his needs.

In a recent paper titled “The Public Ledger,” she proposed that the Federal Reserve take over the deposits of consumer banks, “effectively” end banking “as we know it,” and become “the ultimate public platform for generating, adjusting, and allocating money and financial resources in the modern economy.” She also wants the US to create a central bank digital currency – as Venezuela and China are doing – to “redesign our financial system and turn the Fed’s balance sheet into a ‘real people’s ledger’,” she tweeted this summer. wrong?

Ms. Umarova believes that capital and credit should be directed by unaccountable bureaucracy and intellectuals. It recommended the creation of a “national investment body” whose members would be overseen by an advisory board of academics to fund a “big and bold” climate agenda. It looks like the green infrastructure bank that was rejected by the Senate.

It also desires a politically and structurally independent “public interest council” of “highly paid” academics with broad subpoena power to oversee financial regulatory agencies, including the Federal Reserve. She explained that the council will not be subject to “the restrictions and requirements of the administrative process.” The Ivy League professors are the best.

As a financial auditor, Ms. Omarova will supervise around 1,200 financial institutions. Although it could not enact its own people’s agenda without legislation, it had sweeping powers to punish banks that did not follow its dictates. Remember how during the Obama presidency financial regulators pressured banks to cut credit to lenders on payday.

Our sources say the president nominated Ms. Umarova over the objections of Treasury Secretary Janet Yellen, reported to the Comptroller. One theory for this bizarre nomination is that Biden is trying to placate progressives as he plans to reappoint Jerome Powell as Fed chair. Democratic senators have stamped out all but a few of Biden’s nominees, but Ms. Omarova is the wrong nominee for the wrong industry in the wrong country in the wrong century.

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Appeared September 30, 2021, print edition.

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