Independent Agencies

Title 1 of the Dodd-Frank Act Title established the Financial Stability Oversight Council (FSOC) just over a decade ago. Prior to its arrival, there was no cross-agency government body tasked with protecting the financial system from systemic risks. FSOC was created to avoid repeating the mistakes of the 2008 financial crisis and to be a safeguard against financial practices with the potential to wreak global havoc.

President Biden is being presented with a straightforward, simple opportunity to make good on his promise to take a whole-of-government approach to fighting climate change. Appointing climate leaders who will take urgent climate action even if their job descriptions do not explicitly mention the environment is one of the easiest and most important ways Biden can display integrity.

It has been over a month since President Joe Biden assumed the presidency. So far, thirteen of his Cabinet picks have received Senate confirmation, while the remaining ten who will require it wend their way through the process. In the meantime, the administration continues to announce names for the nearly 4000 other positions it will need to fill. With only a few exceptions, however, picks for one class of appointment — to independent agency boards — have not yet been forthcoming. The Biden administration undoubtedly faces many competing priorities, but these nominations must rise to the top.

It’s been over a month since Biden took office and four months since he and his transition team began choosing appointees in earnest. That makes it an apt time for a tentative assessment. In a new release with Demand Progress, we gave him a B-, with wide variation across issue areas.

On January 20, Joe Biden was sworn in as the country’s 46th President. It will be months, even years, however, before all of the accompanying members of his administration are in place. With over 4000 positions to fill, the vetting and selection process necessary to stand up a new administration is formidable. Add to that the lengthy road to Senate confirmation for over 1000 of those picks and you have a recipe for dysfunction.

Throughout several decades in the Senate, Joe Biden earned a reputation as an institutionalist. Extraordinary circumstances, however, are pushing the new president to cast aside many of his beloved norms when they fail to account for these exceptional times. In just a few short weeks, Biden has removed officials whose predecessors had never before been fired. And faced with predictable Republican obstruction on his signature pandemic response bill, he’s eschewed endless waiting for compromise in favor of budget reconciliation.

It has been just over two weeks since President Joe Biden assumed the presidency. So far, six of his Cabinet picks have received Senate confirmation while the remaining 17 who will require it wend their way through the process. In the meantime, the administration continues to announce names for the nearly 4000 other positions it will need to fill. With only one exception, however, picks for one class of appointment — to independent agency boards — have not yet been forthcoming. The Biden administration undoubtedly faces many competing priorities but these nominations must rise to the top.

Initially created to regulate futures derivatives on crops that had yet to be harvested, the Commodity Futures Trading Commission (CFTC) holds newfound possibility in the coming decade. It is absolutely crucial that a modern-day CFTC taps into the power it already holds to lead on climate action. Naturally, this necessitates a leader with a proven record of taking on corporate power. Any appointee should be prepared to advocate for the public interest, acknowledge the current reality of climate decay we find ourselves in, and creatively apply tools of the government to take immediate action.

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.

Gensler’s first order of business at the SEC will be to reverse Trump’s deregulatory agenda and rebuild the agency’s capacity to police American stock-trading. But this should only be a starting point: SEC activity was insufficient even under Obama, and issues linked to the financial system, from climate change to inequality, have worsened in the four intervening years.

It’s December, and Senate Majority Leader Mitch McConnell is still dodging calls to explicitly acknowledge that President Trump lost the election. It’s clear, however, that he knows who the next president will be. True to form, he’s working hard to undermine Joe Biden by confirming Trump’s nominees to independent agencies in the final days. This could shut down Biden’s ability to influence critical agencies’ composition for months, if not years, with severe consequences for regulatory enforcement and new rulemaking.

With scant days remaining in this Congress, Senate Republicans are busily working to undermine the incoming Biden administration by rushing to confirm Trump’s nominees to terms that will last well beyond January 20, 2021. Yesterday, in a close 48 to 47 vote, they installed Christopher Waller to the Federal Reserve Board of Governors in a term that will not expire until 2030, robbing Biden of the seat. With Mike Pence and his potential tie-breaking vote out of town, Kamala Harris (in her capacity as a Senator) had the power to delay, if not stop it.

Over the past several years, President Trump’s assault on governing norms, from his refusal to reveal information about his finances to his glee in firing those who are not sufficiently loyal to him, has sparked public outcry. One set of norm violations, however, has received relatively little attention from the media or from Senate Democrats. Quietly Trump and Mitch McConnell have undermined independent agencies’ functionality by slow-walking minority party nominations. And, in particular, they have undermined the norm of statutorily-mandated political balance on many independent agency boards in a move that could keep regulatory power in Republican hands for years after Trump leaves office.