When I read last week about the withdrawal by Sarah Bloom Raskin of her nomination to the Federal Reserve Board in the face of fierce opposition from Republicans and Senator Joe Manchin (D, W. Va.) due to her views about climate control and global warming, I was deeply disappointed.
She was sacrificed on the altar of the fossil fuel industry and political expediency. Her withdrawal was necessary to enable the Senate Banking Committee to vote on and approve three other nominations to the Federal Reserve Board at a time of economic turmoil caused by raging inflation.
Treatment of Sarah Bloom Raskin, an exceedingly competent attorney and public servant, is the Washington Way. Both Democrats and Republicans have torpedoed presidential nominations over the years, destroying reputations and demonstrating for everyone to see the fractious and vicious environment peculiar to our nation’s Capital.
What did Bloom Raskin do to inspire such adamantly ugly controversy? She evoked common sense, a rare commodity sometimes in the political realm by advocating that the Federal Reserve monitor the impact of decisions by banks concerning climate change and global warming.
In other words, Raskin, a former Fed board member, deputy secretary of Treasury and chief financial regulator in Maryland, opined that financial institutions consider the effect of climate change in evaluating the risks of loans and investments.
She might as well have waved a red flag in the faces of the fossil fuel industry and the West Virginia senator beholden to the deep-seated coal interests in his state. Manchin, the Democratic spoiler in the U.S. Senate, which is split 50-50 between the two parties, seems oblivious to coal-produced pollution and health concerns.
Manchin and others know that Bloom Raskin is a rational person whose regulatory behavior is not radical. It mattered not in this instance. She was fair game for personal assassination.
Good people have fallen victim to political crosswinds in a city preoccupied with power, re-election and a zero-sum game. This time around, I believe that satisfaction of a powerful lobby outweighed consideration of a top-flight nominee.
While I am railing about the ways and means of political combat, I must change gears a notch to focus on Maryland’s First Congressional District and its Rep. Andy Harris. He and 15 other conservative members of the House of Representatives voted against a widely approved proposal to recognize the inhumane internment of 120,000 Japanese-Americans during World War II through a history network administered by the National Park Service.
The dastardly decision by President Franklin Delano Roosevelt following the Japanese attack on Pearl Harbor to call for this onerous action stained a country fighting to rid the world of Adolf Hitler–who raised racism to a new level of horror and disgust. Internment camps on American soil represented senseless bigotry perpetuated by government leaders determined to punish good people guilty of sharing the same ethnic heritage of Japan, our American enemy.
We did not imprison Americans of German lineage during World War II. Nor should we have considered doing so.
Harris opined that other weightier matters deserved congressional attention. On one hand, he is right. On the other hand, programs that instruct without offending the public offer a necessary message: avoid cruel treatment of fellow Americans and do not allow current events, such as Covid, tied by some to China, to justify verbal and physical attacks on Chinese Americans.
The Federal Reserve Board, criticized of late for its tardy response to inflation, has lost the services of a first-rate public servant. Congressman Harris again has exhibited his shameful disregard of decency and fairness.
The Washington swamp continues to emit repugnant odors. Nothing new.
Columnist Howard Freedlander retired in 2011 as Deputy State Treasurer of the State of Maryland. Previously, he was the executive officer of the Maryland National Guard. He also served as community editor for Chesapeake Publishing, lastly at the Queen Anne’s Record-Observer. In retirement, Howard serves on the boards of several non-profits on the Eastern Shore, Annapolis and Philadelphia.
Matt LaMotte says
“Money talks and Nobody walks”!
“Best Government money can buy”!
Nothing more need be said…
Stephen Schaare says
You slay me. On Covid 19, you say “which some tie to China”. Where did it actually come from?
CDR Jim Moses, USN (Ret.) says
Thank you for declining to label Representative Harris a “Republican.” He is not deserving of that title. I would even go further and suggest he is no “conservative.” President Reagan would certainly not have tolerated his antics.
John Fischer says
Perhaps one day, Howie, we will have achieved a measure of energy independence through means of clean energy. Until that time, canceling the construction of gas and oil pipelines is silly and appointing Federal Reserve members who advocate “monitoring” bank decisions based on climate change is dangerous.
Chip Heartfield says
I think Mr. Freedlander provides a legitimate viewpoint on Ms. Raskin’s nomination and subsequent withdrawal, but I also think it is always helpful to broaden the picture, so here is a differing perspective from the Wall Street Journal:
“Sarah Bloom Raskin on Tuesday withdrew her nomination for vice chairman of the Federal Reserve, and the message of her defeat is more important than the fate of one would-be regulator. Her defeat is a warning to the Fed that a majority of the Senate doesn’t believe the central bank should use its power to allocate capital for political purposes.
President Biden blamed Ms. Raskin’s defeat on “baseless attacks from industry and conservative interest groups.” But Ms. Raskin’s most significant opponent was her oft-expressed view that the Fed and other regulators should deny credit to companies that produce or heavily consume fossil fuels. We’ve documented those views in several editorials.
While she and her supporters tried to say she wouldn’t use her powers that way at the Fed, everyone knew that was false. Those views are the reason that Sens. Elizabeth Warren, Sherrod Brown and Sheldon Whitehouse pushed her so hard for the job.
This isn’t part of the Fed’s dual mandate, which is full employment and stable prices. Congress gave the central bank additional regulatory power after the financial panic, but in the name of bank safety and soundness, not to steer capital to one industry or deny it to another. But Democrats now want the Fed to use those powers to promote their political goals.”
In addition, an altogether too common ethical difficulty arose for Ms. Raskin and her husband, Representative Jamie Raskin – another sad part of the Washington Way and why many call it the Swamp, to be sure. It is surprising and unfortunate that they did not do a better job of fully and timely disclosing her dealings in the private sector between government stints: https://thehill.com/homenews/senate/592587-biden-nominee-faces-scrutiny-over-fintech-work-compensation.
As for Representative Harris’ vote, I totally agree with Mr. Freedlander.
Deirdre LaMotte says
Well, we are at the end of any help for our World. Climate will destroy what we know as a sustainable life
on this planet. Anything this woman could have done would have been noble. We are controlled by dark money
fighting any attempt to leave our children and grandchildren a livable world.
Howard Freedlander says
Thank you, Chip, for your thoughtful
response. As pension funds are examining measures taken by major corporations to deal with climate change and global warming, it seems only reasonable to subject financial institutions to the same informed scrutiny. Should banks not be expected to evaluate the risk factor related to climate change when deciding on loans?
Chip Heartfield says
Hi Howard, yes…if Congress changes their mandate. No, based on current law and their own mission statement:
“What is the purpose of the Federal Reserve System?
The Federal Reserve System, often referred to as the Federal Reserve or simply “the Fed,” is the central bank of the United States. It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserve was created on December 23, 1913, when President Woodrow Wilson signed the Federal Reserve Act into law. Today, the Federal Reserve’s responsibilities fall into four general areas.
-Conducting the nation’s monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices.
-Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers.
-Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.
-Providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions, and playing a major role in operating and overseeing the nation’s payments systems.”
Ann P Farrell says
Mrs. Raskin’s withdrawal is a huge loss sadly reflecting corporate (donor) control of Congress and toxic D.C. culture.
Andy Harris remains odious. Are supporters aware of his voting record’s harm to country, constituents and planet – THEM!? (Use fact checker on all campaign literature).
This election is truly critical for Eastern Shore’s future. Fortunately, the new D1 (if approved) offers Democratic candidates a viable chance to win if they GOTV in primary – then join “reachable Republicans” in general – with #1 goal to upend Andy Harris for the good of all as the uniting force.