{"id":1024152,"date":"2021-11-17T15:43:36","date_gmt":"2021-11-17T20:43:36","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1024152"},"modified":"2021-11-17T15:43:39","modified_gmt":"2021-11-17T20:43:39","slug":"carney-dont-fall-for-the-ludicrous-saule-omarova-cover-up-she-is-too-dangerous-to-confirm","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/carney-dont-fall-for-the-ludicrous-saule-omarova-cover-up-she-is-too-dangerous-to-confirm\/","title":{"rendered":"Carney: Don&#039;t Fall For The Ludicrous Saule Omarova Cover-Up, She Is Too Dangerous To Confirm"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcarney-dont-fall-for-the-ludicrous-saule-omarova-cover-up-she-is-too-dangerous-to-confirm%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1024152&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/11\/imgonline-com-ua-FrameBlurred-ezFeATluG0xgGhqk-1-640x335-1.png\" class=\"ff-og-image-inserted\" \/><\/div>\n<p class=\"subheading\">When President Joe Biden appointed Saule Omarova to the Office of Comptroller of the Currency, it was not hard to discover that the Cornell academic held positions that were far from the American mainstream and would reset the U.S. economy under a command-and-control model.<\/p>\n<p>That\u2019s because the evidence has all been published, quite recently, in academic journals or appeared in <a href=\"https:\/\/www.breitbart.com\/politics\/2021\/11\/13\/bidens-banking-nominee-calls-eliminate-all-private-bank-accounts\/\">videos accessible on YouTube<\/a>. She has argued for the <a href=\"https:\/\/www.breitbart.com\/economy\/2021\/10\/26\/omarova-bank-killer\/\">abolition of private sector banking,<\/a> has urged said that all corporate charters should be conditioned on pledges to serve bureaucrat approved purposes, and said that the bankruptcy of oil and gas companies would be <a href=\"https:\/\/www.breitbart.com\/politics\/2021\/11\/13\/bidens-banking-nominee-calls-eliminate-all-private-bank-accounts\/\">welcomed<\/a>.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p>Yet&nbsp;<em>New York Magazine<\/em> this week <a href=\"https:\/\/nymag.com\/intelligencer\/2021\/11\/whos-afraid-of-saule-omarova.htm\">launched<\/a> a cover-up of her views this week, calling criticisms \u201cludicrous red-baiting.\u201d The puff-piece allows Omarova to mischaracterize her own views, quotes no critics, and even more tellingly does not quote from her own paper.<\/p>\n<p>Here\u2019s the most egregiously misleading passage from&nbsp;<em>New York:&nbsp;<\/em><\/p>\n<blockquote readability=\"12\">\n<p>\u201cOf course, I expected that Wall Street banks would be strenuously opposing my nomination,\u201d Omarova told me, \u201cbecause my work has been focused on how to minimize systemic risk that is created when large banking institutions start aggressively growing their trading operations and feed speculative booms that may be unsustainable. I expected that they would be worried about me becoming their regulator because they would know that I have strong views about not allowing another crisis to happen; they know I ask difficult questions and keep asking them, rather than being satisfied with superficially reassuring answers from the industry.\u201d<\/p>\n<\/blockquote>\n<p>Every single phrase is misleading.<\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>First, it\u2019s not primarily Wall Street banks that are opposing her nomination. In fact, the big Wall Street banks would likely be fine with Omarova at the head of the Office of Comptroller of the Currency. They\u2019re not as dependent on deposits for funding so they will not be vaporized by her proposal to force all bank deposits into the Federal Reserve. And the OCC is not their primary regulator. That\u2019s the Federal Reserve. The OCC plays second fiddle\u2014or maybe third or fourth, after the Securities &amp; Exchange Commission and the Commodity Futures Trading Commission\u2014when it comes to regulating Wall Street.<\/p>\n<p>Instead, it\u2019s the smaller banks that have the most to fear from Omarova. And so, sure enough. the most vocal opposition has come from smaller, independent and community bankers.&nbsp;The Montana Independent Bankers group has written to Sens. Jon Tester (D-MT) and Steve Daines (R-MT) opposing Omarova\u2019s confirmation and calling on the senators to vote against her. \u201cMs. Omarova\u2019s positions are antithetical to the economic principles that have long-guided this nation\u2019s monetary policies and systems,\u201d MIB president Andrew West wrote in an October letter.&nbsp;Chair of the Independent Community Bankers of America Brad Bolton tweeted, \u201cThis nomination must be stopped!\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\" readability=\"5.8170731707317\">\n<p lang=\"en\" dir=\"ltr\">This nomination must be stopped!<br \/>She is a threat to a viable <a href=\"https:\/\/twitter.com\/hashtag\/communitybanking?src=hash&amp;ref_src=twsrc%5Etfw\">#communitybanking<\/a> environment! <a href=\"https:\/\/t.co\/9Arop0ls8M\">https:\/\/t.co\/9Arop0ls8M<\/a><\/p>\n<p>\u2014 Brad Bolton (@BradMBolton) <a href=\"https:\/\/twitter.com\/BradMBolton\/status\/1443589374424207373?ref_src=twsrc%5Etfw\">September 30, 2021<\/a><\/p>\n<\/blockquote>\n<p>It\u2019s not Wall Street banks lined up against Omarova. It\u2019s Main Street banks.<\/p>\n<p>Second, Omarova misstated her work when she says it has been \u201cfocused on minimize systemic risk that is created when large banking institutions start aggressively growing their trading operations and feed speculative booms that may be unsustainable.\u201d Minimizing systemic risk is important and valuable. It\u2019s what we want bank regulators to do. But that\u2019s not what she has focused on.<\/p>\n<figure id=\"M-ROS-B3\" class=\"a8d adSo\"><\/figure>\n<p>Instead, her work has called for an end to regular, old banking.&nbsp;In \u201c<a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=3715735\">The People\u2019s Ledger: How to Democratize Money and Finance the Economy\u201d<\/a>\u2014a law review article published this year\u2014Omaraova argues that all bank deposits should be transferred into what she calls FedAccounts at the Federal Reserve. This would eliminate most banks that are funded by deposits, and would a death sentence for every smaller, community bank serving smaller cities, towns, and farm communities in the U.S.<\/p>\n<p>As Omarova points out, this growth in the liability side of the Fed\u2019s balance sheet would also require growth in the asset side. With banks destroyed and deposits at the Fed, the Fed would become the primary source of financing and credit in the U.S. Lending decisions would be made according to centralized, bureaucratic fiat instead of competitive decisions by bankers attempting to profit by making good loans.<\/p>\n<figure id=\"D-ROS-B2\" class=\"a8d\"><\/figure>\n<p>Note, also, that this would do little to curb trading by large financial institutions. Lehman Brothers and Bear Stearns were not deposit taking banks when they collapsed. In fact, it was the lack of stable funding in the form of deposits that contributed to their collapse. The same was true of Fannie Mae and Freddie Mac, two institutions that were charged with directing credit according to a regulatory view of public purpose\u2014one of the very things that led to their collapse. The kind of aggressive trading and speculative booms Omarova says she wants to address were not primarily fueled by deposit takers but instead by the shadow banking system her nationalization of deposits would not only leave untouched but likely enlarge.<\/p>\n<p>\n<iframe loading=\"lazy\" title=\"LPE Conference: LPE &amp; Macro\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/u7TFHfLRYS0?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/p>\n<p>Far from minimizing systemic risk, Omarova\u2019s proposal maximizes it by centralizing economic decision-making in the hands of officials at the central bank. She would eliminate that particular genius of capitalism which is competition of views. In our current systemic, financial risk can become systemic when too many bankers adopt the same view of risk and pursue the same assets. Those assets rise in price and too few precautions are taken against error when a herd mentality takes over.&nbsp; That\u2019s what happened in the lead-up to the financial crisis, when bankers became enamored of mortgage-backed securities and derivatives and regulators encouraged this devotion by giving housing-linked assets low capital requirements. Omarova\u2019s proposal to centralize deposit-taking and lending at the Fed makes this far worse. Only one view of credit and risk would prevail and the cost of errors would become system-wide.<\/p>\n<figure id=\"M-ROS-B4\" class=\"a8d adSo\"><\/figure>\n<p>In other words, Omarova\u2019s takeover of the banking system would leave American finance more fragile and more vulnerable to widespread collapse. It\u2019s a plan that makes her too dangerous to confirm.<\/p>\n<p>We could use reforms that would further decentralize banking by encouraging innovation, new bank start-ups, and breaking up or severely curtailing the activities of our biggest banking behemoths. The answer to Too Big to Fail is not Even Bigger.<\/p>\n<p>Omarova goes even further. In another paper, <a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=3887478\">published<\/a> this summer, she calls for all corporate charters to be conditioned on pledges by founders that they will serve approved government purposes. In her terms, this is requiring corporations to serve a \u201cpublic purpose\u201d but that\u2019s misleading. The acceptable purposes will be subject to approval by the American public. Instead, businesses would be forced to comply with the mandates of bureaucrats focused on Green New Deal climate change and critical race theory-oriented social justice.<\/p>\n<p>It\u2019s a view of the economy that puts the government first. There are no private businesses in her view\u2014just franchises granted the privilege to operate by the government and subject to government control at every turn. Only growth deemed \u201cbeneficial\u201d by the bureaucrats will be permitted.<\/p>\n<p>\u201cThe corporate form is best described as a \u2018franchise\u2019 arrangement in which the sovereign public (as franchisor) grants private firms (as franchisees) extraordinary organizational privileges, with the ultimate goal of promoting economic development and publicly beneficial growth,\u201d she writes.<\/p>\n<p>The Senate Banking Committee will have the opportunity to question her on these views tomorrow. Let\u2019s hope the Senators on both sides of the aisle are not fooled by the establishment media\u2019s cover-up. They should pay close attention to how dangerous and destabilizing Omarova\u2019s views truly are.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When President Joe Biden appointed Saule Omarova to the Office of Comptroller of the Currency, it was not hard to discover that the Cornell academic held positions that were far &#8230;<\/p>\n","protected":false},"author":11,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1024152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1024152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1024152"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1024152\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1024152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1024152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1024152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}