![]() ![]() Reserve Trust ultimately was granted a Fed master account in 2018, Lummis said. Lummis said Thursday that Raskin called the Kansas City Regional Federal Bank in August 2017 about the denial of Reserve Trust's master account application two months earlier. Reserve Trust did not immediately respond to a voice message seeking comment. "Reserve Trust is a Special Purpose Depository Institution (SPDI) that, like many other FinTech companies wants access to the Federal Reserve's payment system to be able to conduct financial transactions (like a bank) but without all the red tape regulations that larger banks are held to," San Diego-based tax attorney John Milikowsky wrote Thursday afternoon. The vast majority of nonbank fintechs, which include Reserve Trust, must partner with banks insured by the FDIC to indirectly access the Fed's payment services. Raskin served four years as a Federal Reserve governor and then as a deputy secretary at the Treasury Department before joining the board of Reserve Trust, a financial technology payments company, in May 2017.Ī month later, Reserve Trust's first application for a Federal Reserve master account was denied.įintech 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. "Lummis is obviously is raising the question of whether a competitor financial institution is disadvantaged because they didn't have access, because they didn't have Bloom Raskin on their board," Clark added. But, "on the part of the public, this raises a question about the 'revolving door,' about whether revolving-door legal restrictions are strict enough." "It doesn't mean that Bloom Raskin violated the law," said Kathleen Clark, a law professor at Washington University in St. ![]() That practice is sometimes referred to as a "revolving door" between politics and corporate interests. Lummis did not suggest that Raskin broke the law, but rather that the former Fed governor and Treasury deputy used her clout from her prior stints in government as an advantage in the corporate sector. If Senator Lummis had any information to back up her innuendo she would have presented it at the hearing," the spokesperson said. "Senator Lummis engaged innuendo with no facts presented to back up her false claims. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower ![]() Best Debt Consolidation Loans for Bad Credit ![]()
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