2020 Election/Transition

Racial Wealth Gap Expert Mehrsa Baradaran is an Alternative to Michael Barr, a Wall Street and Big Tech Ally.

On Monday, President Biden announced his intention to name Federal Trade Commissioner Rohit Chopra as the Consumer Financial Protection Bureau’s next director, earning a rare, unqualified cheer from the party’s left flank. Despite serving in the minority on the FTC, Chopra has managed to have a ground-shaking impact, earning a reputation for skillful and creative maneuvering. It is encouraging to see his dogged work for the public interest rewarded and the CFPB land in such capable hands. Just elevating Chopra, however, is not enough. If Democrats are serious about good governance and building their party’s power, they must look to the institutional features that provided Chopra with a platform and honed his governing skills so that, moving forward, he is not such a lonely figure.

Big Tech has a huge stake in who Biden ultimately staffs his antitrust and tech regulators. These individuals will decide how aggressively to carry out Biden’s promises of reining in the political and market power of these companies. If Big Tech gets its way, Biden will staff his antitrust teams with its attorneys and allies, who have pushed back against calls to break up these monopolies and protected them against regulation and enforcement. But if Biden wants to keep his campaign promises to take on monopolies, he must shut the revolving door between the federal government and Big Tech. That starts by rejecting for top jobs the following Big Tech allies.

This newsletter provides regular updates on Biden Administration personnel decisions. While we do not claim to capture the full powers and responsibilities of these positions, we will discuss the top Administration jobs Biden has yet to fill. We also discuss the individuals vying for top jobs who present serious conflicts of interest.

As President Biden continues to staff his administration, the nascent fintech industry will be keeping close watch on the personnel appointed to key regulatory positions. It would be prudent to keep private fintech evangelists away from the positions that are responsible for regulating these firms and cryptocurrencies.

Baradaran seems committed to challenging the status quo of our financial system that sidelines poor and marginalized communities. The OCC has long been part of a banking system that reinforces racial injustice rather than addresses it — and that remained largely true even after Dodd-Frank was passed and implemented by Obama’s regulatory team. Voices like Baradaran’s are valuable in reconsidering financial regulation and helping raise the bar for who is and who is not an adequately zealous regulator.

You have committed to rooting out the corruption of the previous Trump administration and have proposed sweeping government ethics proposals, which we commend. But in order to stick to these promises and to assure the American public that your administration will put national security concerns over corporate profits or foreign interests, we urge you to, at the very least, direct your nominees and appointees to clearly describe the specific nature of their past work for the private sector actors, especially those under investigation by or in ongoing contracts with the federal government. Earlier this week, the Senate Foreign Relations Committee, recognizing the significance of these conflicts, requested additional information on nominees’ private sector work. The undersigned groups urge you to complete this request swiftly and ensure all of your appointees disclose the full scope and nature of their private sector work.

Dozens of foreign policy, faith-based, environmental organizations, and watchdog groups are calling on President Biden to require more thorough screenings for, and disclosures of, possible conflicts of interest among nominees and appointees to the new administration. In a letter sent to the White House today, over 40 groups, including the American Friends Service Committee, Friends of the Earth, Government Accountability Project, Peace Action, Project on Government Oversight, Public Citizen, Win Without War, and the Revolving Door Project say the Personal Financial Disclosures submitted by Biden’s nominees do not include vital information about private sector work and personal investments, posing questions about potential conflicts of interest.

If appointed to Biden’s OCC, Barr will confront one major new question for the primary federal regulator of banks: how to handle the emergent “fintech” industry of lending and payments apps. Disturbingly, Barr’s history advising and investing in the fintech industry suggests an approach similar to Trump’s own fintech-friendly stooge, former acting Comptroller Brian Brooks.

The OCC could also update the Comptroller’s Handbook to guide bank examiners to measure climate risk in their assessments, which would force banks to measure climate risk in their own internal stress tests. This would also push banks to make environmentally sound decisions, because they would be recontextualized as financially savvy decisions.

Donald Trump is no longer president, but Trumpism will loom large over the new administration if President Biden does not fire all of Trump’s political appointees immediately. From the Social Security Administration to US Attorneys, there are plenty of terminations that the new president must enact.

The vast majority of Americans believe that the monopoly power of tech companies is a major problem for the economy and a corrupting political influence. Biden should heed these concerns and avoiding appointing Big Tech insiders and allies of monopolies to head crucial antitrust regulatory posts at the Department of Justice.

These personnel additions should leave climate activists cautiously optimistic, and many of these individuals are examples of people we would like to see staffed in every department and agency throughout the federal government.

Biden framed his campaign as “Scranton vs. Park Avenue,” promising an end to corporate government. But in order to do that, Biden must seal the revolving door between corporate law firms and the federal government. There is no shortage of brilliant attorneys who have dedicated their careers to serving the public interest and fighting for social justice who are ready to do that work within the new administration.