Biden Nominee’s Dark Past Exposed By GOP Senator

Others have to dig because the guilty won’t tell you and they’ll laugh in your face about it. Wyoming GOP Senator Cynthia Lummis will turn those rocks over on her own. Sarah Bloom Raskin maybe another in a long line of thieves. Raskin is Biden’s nominee for the top bank supervisory post at the Federal Reserve. She was recently questioned about how she got special access and received $1.5 million.

The Senator has an idea

Of what’s going on. Raskin joined the Reserve Trust board in 2017. She had access to the Federal Reserve’s payment system which is hard to get. She was given shares in the Reserve Trust when she joined.

She worked with Amias Gerety who is also a partner at QED Investor and controlling owner at the Reserve Trust. QED Investor purchased her shares for almost $1.5 million. Even in Washington that’s a lot of money for two years on a board.

The Senator needs to go down the path

Lummis questioned Raskin at the nomination hearing.

“I’d like to ask you about Federal Reserve master account access. This is an issue of great interest to Wyoming and my constituents. I asked [Federal Reserve Board] Chairman Powell about it; I asked [Federal Reserve] Governor [Lael] Brainard about it at their nomination hearings; I’ve been stonewalled at the Fed, and so I wrote an op-ed in The Wall Street Journal.

Master accounts are the way banks access the payment system. Many non-banks, including trust companies, have applied and failed to receive a Fed master account. To my knowledge there’s one and only one state charter trust company that has a Fed master account. It’s a start-up based in Colorado formed in 2016 called Reserve Trust. Reserve Trust has repeatedly touted the value of the company’s Fed master account. Their homepage says, ‘In 2021 one of the company’s investors underscored that Reserve Trust is armed with a master account at the Federal Reserve and direct access to the payment rails.’ The only company in the country that has that, the only fintech [financial technology] company.

Fintech firms like Reserve Trust have long sought Fed master accounts, which allow companies direct access to the Fed’s payment systems, and to settle transactions with other participants through the central bank.

Now, a Fed master account gives Reserve Trust an enormous advantage over everybody else, since it appears they’re the only one who has it. And you’re very familiar with Reserve Trust because you joined their board in May 2017 just four months after leaving Treasury, right? Right?”

The Senator started being avoided

Raskin answered her, “Four years, well, after I left as a Federal Reserve Governor I went to Treasury as a Deputy Secretary.”

How did you get special access so quickly? Have you been making phone calls?

“Correct. You went from Federal Reserve governor to Treasury and then to Reserve Trust’s board. And then Reserve Trust had its master account application denied in June 2017, but one year later the Fed granted it a master account in 2018. It’s a mystery to me how dozens of fintech companies have tried unsuccessfully and how Wyoming’s SPDI [Special Purpose Depository Institution] charter has been under review for well over a year; two and a half years at the Fed consulting with them about how to make this qualified. How did Reserve Trust get there so quickly? After Reserve Trust had their application denied did you communicate with the Federal Reserve about Reserve Trust’s application?”

Senator Lummis will have to dig for herself

Because Raskin won’t answer. “So, Senator, I was on the board of Reserve Trust on the board of directors from 2017 till 2019.” Lummis repeated, “And they got their master account in 2018. So did you call or communicate with the Federal Reserve about Reserve Trust’s application?”

Raskin was indignant, I don’t do anything improper! “Well, certainly if you are suggesting anything improper I want to make very clear that I have had, first of all, had the honor to serve in various pubic capacities and each time I left I have been very mindful of the rules regarding departure.”

Senator Lummis smells something

Raskin did indeed make phone calls. CNBC backed it up.

“It’s my understanding you did call the Kansas City Fed in August of 2017 regarding Reserve Trust’s master account application.

A Senate Republican aide later told CNBC that Sen. Pat Toomey, a Pennsylvania Republican and the ranking member of the committee, sent a letter to the Kansas City Fed in early February requesting information about Raskin’s purported calls to the regional Fed bank in 2017. The aide added that a Fed official replied to Toomey and confirmed that Raskin did indeed place a phone call to the Kansas City Fed on behalf of Reserve Trust’s master account application.

So I have significant questions about your involvement in Reserve Trust’s efforts to obtain a master account. So, Reserve Trust is denied; you go on their board, then they get a master account. Did you communicate with the board of governors about Reserve Trust’s application?”

The Senator got a brick wall

Back and forth ensued.

Raskin: “So I can assure you that I have have been very focused —”

Lummis: “Well, who did you communicate with?”

“First of all, I want to be very clear here. The Federal Reserve has approved plenty of master accounts.”

“But not in fintech. You resigned from Reserve Trust in August of 2019, correct?”

“August 2019 I left the board of Reserve Trust.”

“Correct. Now, do you know Amias Gerety?”

“Yes. I do know Amias Gerety.”

The Senator finished

Lummis asked, “While you were number two at Treasury, Mr. Gerety was the acting assistant secretary for financial institutions and he reported to you, right?”

Raskin admitted, “He did not report directly to me, but yes, he was at Treasury when I was there.”

Lummis concluded, “And he’s also a partner at QED Investor, which is now the controlling owner of Reserve Trust. So in 2020, QED Investor purchased the 195,000 Reserve Trust shares you received when you joined the board in 2017. And they purchased your shares for almost 1.5 million dollars. Even in this town that’s a lot of money for being on a company’s board of director for two years.” Static and stonewalling have occurred.

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