Sen. Elizabeth Warren Questions Federal Reserve Candidate Stanley Fischer On Citigroup Ties

[Purveyor]

Stanley Fischer, President Obama's candidate for vice chairman of the Federal Reserve, appeared to have relatively strong support from senators at his confirmation hearing Thursday.

But he did face a series of tough questions from Sen. Elizabeth Warren, the Massachusetts Democrat known as a critic of Wall Street, relating to his three years working for the megabank Citigroup in the early 2000s.

"The connection between Citigroup and Democratic administrations really sticks out,” Warren noted. “I think it’s dangerous if our government falls under the grip of a tight-knit group connected to one institution.”

“There is obviously something to be worried about," the 70-year-old Fischer said in response to Warren's question about a revolving door between the administration and Citigroup.

"But I think we ought to look at the other side of this," he added, explaining that his three years as vice chairman at Citigroup helped him understand banking when he later oversaw the financial sector as the head of Israel's central bank.

more...

http://washingtonexaminer.com/sen.-warren-questions-fed-candidate-stanley-fischer-on-citigroup-ties/article/2545618

[WhiteTara]

1. Yep, I'm sure he picked up a bag of tricks

to take with him to feather the nests of his old friends.

[frazzled]

2. Interesting, from someone

who hired top people from Deutsche Bank and Morgan-Stanley (as well as Freddie-Mac) to staff the Consumer Financial Protection Bureau when she was setting it up. At the time, she cited their banking experience as necessary and helpful to the job. And she was probably right. I guess Citibank has too many connections to Democrats ... (and maybe Deutsche Bank and Morgan-Stanley do not?)

http://www.salon.com/2011/02/18/elizabeth_warren_hires_some_bankers/

Congress created the Consumer Financial Protection Bureau to protect consumers from abuses in the lending industry. Now the bureau is turning to former members of the industry to help it police banks, credit card companies and mortgage lenders.

“Building a team to develop smarter financial regulations means hiring top-notch leaders with a wide range of experiences,” Ms. Warren said in a statement.

The bureau’s hires announced Thursday include Rajeev Date, the former Deutsche Bank managing director. Mr. Date, who also worked at Capital One Financial as a senior vice president, will be the bureau’s associate director for research, markets and regulations.

“Raj Date and his team bring a wealth of experience in the financial services industry, government, nonprofits, community banking and academia,” Ms. Warren said.

Ms. Warren also hired Elizabeth Vale, a Morgan Stanley managing director who was vice president and portfolio manager at Philadelphia National Bank. Her industry experience will come in handy — she will serve as a liaison to community banks and credit unions.

Ms. Warren’s hires also include a former financial industry lawyer, a former senior employee at the mortgage-finance giant Freddie Mac and Corey Stone, who once was the chairman of Start Community Bank in New Haven, Conn.

http://dealbook.nytimes.com/2011/02/17/consumer-watchdog-hires-former-bankers/