Fed Board Nominee Landon Gets Support From Senate Democrats

        By Pedro Nicolaci da Costa
        Two top Democrats on the U.S. Senate Banking Committee expressed their support Wednesday for President Barack Obama' s latest pick to serve on the Federal Reserve Board of Governors.
        Elizabeth Warren (D-Mass.) and Sherrod Brown (D-Ohio) told The Wall Street Journal they were heartened by Mr. Obama's nomination of Allan Landon, former chief executive of Bank of Hawaii. Both senators have been vocal about their criticism of what they see as the excessive political influence of large Wall Street firms.
        "I'm encouraged by Mr. Landon's experience as a community banker, and I look forward to learning more about how his background has shaped his view of Too Big to Fail and other serious problems facing the Fed," Ms. Warren said in an emailed statement, referring to the issue of financial firms so large that government officials would feel compelled to rescue them rather than let their failure destabilize the financial system. "His addition to the Board could add some much-needed diversity of views."
        Mr. Landon's nomination is subject to Senate confirmation. The banking committee will likely hold a hearing and vote on whether to send his nomination to the full chamber. Republican Senators on the banking committee declined to comment on the nomination.
        The Fed seeks to promote stable inflation and healthy employment. It sets short-term interest rates and regulates banks.
        "The Federal Reserve must continue to promote policies that serve the needs of Main Street Americans. This nomination recognizes the important role that community banks play in our economy and in every community across the country," said Mr. Brown. "I look forward to meeting with Mr. Landon as the Banking Committee gives his nomination a full and fair consideration."
        If Mr. Landon is confirmed, the seven-seat Fed board would have one vacancy. It now includes three economists, including Chairwoman Janet Yellen . The two other board members have law degrees.
        Ms. Warren also struck a note of caution. "Even if Mr. Landon is confirmed, there would remain a serious lack of supervisory and investigatory experience on the Fed Board, and I encourage the President to move quickly to nominate someone to the one remaining open position who can provide that critical perspective," she said.
        The Dodd-Frank financial reform legislation mandates the appointment of a Fed vice chair for regulation, but that position is still vacant. In the meantime, Fed Governor Daniel Tarullo continues to act as the Fed's regulatory point man.
        (END) Dow Jones Newswires

        January 07, 2015 18:37 ET (23:37 GMT)

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