Lummis: Biden Fed Nominee Raked In $1.5 Million From Start-Up She Pulled Strings For
By: Cynthia Lummis
February 10, 2022
As a longtime legislator, I know that nothing frustrates the people of Wyoming and the rest of the country as much as when connected people in Washington, D.C. use their public service to profit handsomely in the private sector.
Right now, the Senate is considering a nominee whose background looks like the dictionary definition of what we call the “revolving door.” The revolving door is a term we use when a politician or bureaucrat works for the government, then goes to the private sector and “cashes out” by using their connections and influence to make huge amounts of money in a way that no ordinary American could.
This nominee is Sarah Bloom Raskin. During the Obama administration, Raskin worked at the Federal Reserve and the Department of Treasury before leaving Treasury in 2017. Four months after she left government service, she joined the board of a Colorado-based trust company called Reserve Trust. Reserve Trust is a non-bank financial technology (“fintech”) start-up that was seeking access to the Federal Reserve’s payment system through what is called a “master account.”
Master accounts are almost exclusively limited to depository institutions, and it’s unheard of for a non-systemically important trust company to obtain a master account. A fintech non-bank company that has this access, like Reserve Trust does, has an enormous leg up on its competition and is worth a great deal of money to investors.
more
As a longtime legislator, I know that nothing frustrates the people of Wyoming and the rest of the country as much as when connected people in Washington, D.C. use their public service to profit handsomely in the private sector.
Right now, the Senate is considering a nominee whose background looks like the dictionary definition of what we call the “revolving door.” The revolving door is a term we use when a politician or bureaucrat works for the government, then goes to the private sector and “cashes out” by using their connections and influence to make huge amounts of money in a way that no ordinary American could.
This nominee is Sarah Bloom Raskin. During the Obama administration, Raskin worked at the Federal Reserve and the Department of Treasury before leaving Treasury in 2017. Four months after she left government service, she joined the board of a Colorado-based trust company called Reserve Trust. Reserve Trust is a non-bank financial technology (“fintech”) start-up that was seeking access to the Federal Reserve’s payment system through what is called a “master account.”
Master accounts are almost exclusively limited to depository institutions, and it’s unheard of for a non-systemically important trust company to obtain a master account. A fintech non-bank company that has this access, like Reserve Trust does, has an enormous leg up on its competition and is worth a great deal of money to investors.
more
https://thefederalist.com/2022/02/10/lummis-biden-fed-nominee-raked-in-1-5-million-from-start-up-she-pulled-strings-for/
