Biden pick under GOP scrutiny for role with fintech firm that got Fed account

2022-02-07 19:10:37
Zachary Halaschak


Republicans are seeking answers from Sarah Bloom Raskin, President Joe Biden’s pick for a top Federal Reserve role, about how a company she directed as a board member was able to obtain “unusual access” to the Fed’s payment system.

At question is to what role, if any, Raskin, who was fresh out of a position in the Obama administration with a background at the Fed, played in helping to convince the central bank to grant Colorado-based Reserve Trust a Fed master account, which is highly coveted and hands the company an advantage over its rivals. Reserve Trust is apparently the only nonbank fintech business in the country that has been able to secure a Fed master account.

Sen. Pat Toomey, the top Republican on the banking committee, said on Monday that the Fed confirmed to his office that, prior to the prized account being awarded to Reserve Trust, Raskin called the central bank on behalf of the company. Raskin was later given…


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