    [Senate Hearing 118-490]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 118-490

                      NOMINATIONS OF TANYA OTSUKA, MARK UYEDA,
                       SPENCER BACHUS III, JENNIFER FAIN, CLAUDIA
                       SLACIK, AND WILLIAM BRODSKY

    =======================================================================

                                    HEARING

                                   BEFORE THE

                                  COMMITTEE ON
                       BANKING,HOUSING,AND URBAN AFFAIRS
                              UNITED STATES SENATE

                        ONE HUNDRED EIGHTEENTH CONGRESS

                                 FIRST SESSION

                                       ON

                                NOMINATIONS OF:

    TANYA OTSUKA, OF VIRGINIA, TO BE A MEMBER OF THE NATIONAL CREDIT UNION
                                 ADMINISTRATION

                                   __________

        MARK UYEDA, OF CALIFORNIA, TO BE A MEMBER OF THE SECURITIES AND
                              EXCHANGE COMMISSION

                                   __________

        SPENCER BACHUS III, OF ALABAMA, TO BE A MEMBER OF THE BOARD OF
                      DIRECTORS OF THE EXPORT-IMPORT BANK

                                   __________

     JENNIFER FAIN, OF VIRGINIA, TO BE INSPECTOR GENERAL, FEDERAL DEPOSIT
                             INSURANCE CORPORATION

                                   __________

        CLAUDIA SLACIK, OF NEW YORK, TO BE A DIRECTOR OF THE SECURITIES
                        INVESTOR PROTECTION CORPORATION

                                   __________

       WILLIAM BRODSKY, OF ILLINOIS, TO BE A DIRECTOR OF THE SECURITIES
                        INVESTOR PROTECTION CORPORATION

                                   __________

                                OCTOBER 19, 2023

                                   __________

      Printed for the use of the Committee on Banking, Housing, and Urban
                                    Affairs

    [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

                    Available at: https: //www.govinfo.gov /

                                  __________

                       U.S. GOVERNMENT PUBLISHING OFFICE
    57-393 PDF                  WASHINGTON : 2025

    -----------------------------------------------------------------------------------

                COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

                         SHERROD BROWN, Ohio, Chairman

    JACK REED, Rhode Island              TIM SCOTT, South Carolina
    ROBERT MENENDEZ, New Jersey          MIKE CRAPO, Idaho
    JON TESTER, Montana                  MIKE ROUNDS, South Dakota
    MARK R. WARNER, Virginia             THOM TILLIS, North Carolina
    ELIZABETH WARREN, Massachusetts      JOHN KENNEDY, Louisiana
    CHRIS VAN HOLLEN, Maryland           BILL HAGERTY, Tennessee
    CATHERINE CORTEZ MASTO, Nevada       CYNTHIA M. LUMMIS, Wyoming
    TINA SMITH, Minnesota                J.D. VANCE, Ohio
    RAPHAEL G. WARNOCK, Georgia          KATIE BOYD BRITT, Alabama
    JOHN FETTERMAN, Pennsylvania         KEVIN CRAMER, North Dakota
    LAPHONZA R. BUTLER, California       STEVE DAINES, Montana

                         Laura Swanson, Staff Director

                   Lila Nieves-Lee, Republican Staff Director

                           Elisha Tuku, Chief Counsel

                      Amber Beck, Republican Chief Counsel

                          Cameron Ricker, Chief Clerk

                          Shelvin Simmons, IT Director

                           Pat Lally, Assistant Clerk

                                      (ii)

                                C O N T E N T S

                                  ----------

                           THURSDAY, OCTOBER 19, 2023

                                                                       Page
    Opening statement of Chair Brown.................................     1
            Prepared statement.......................................    30

    Opening statements, comments, or prepared statements of:
        Senator Scott
            Prepared statement.......................................    31
        Senator Rounds...............................................     4

                                    NOMINEES

    Tanya Otsuka, of Virginia, to be a Member of the National Credit
      Union Administration...........................................     6
        Prepared statement...........................................    33
        Biographical sketch of nominee...............................    35
        Responses to written questions of:
            Chair Brown..............................................   118
            Senator Scott............................................   118
            Senator Warnock..........................................   119
            Senator Tillis...........................................   120
            Senator Hagerty..........................................   121
    Mark Uyeda, of California, to be a Member of the Securities and
      Exchange Commission............................................     7
        Prepared statement...........................................    46
        Biographical sketch of nominee...............................    47
        Responses to written questions of:
            Senator Scott............................................   121
    Spencer Bachus III, of Alabama, to be a Member of the Board of
      Directors of the Export-Import Bank............................     8
        Prepared statement...........................................    63
        Biographical sketch of nominee...............................    64
        Responses to written questions of:
            Chair Brown..............................................   124
            Senator Scott............................................   125
            Senator Warnock..........................................   126
    Jennifer Fain, of Virginia, to be Inspector General, Federal
      Deposit Insurance Corporation..................................     9
        Prepared statement...........................................    77
        Biographical sketch of nominee...............................    78
        Responses to written questions of:
            Chair Brown..............................................   127
            Senator Scott............................................   129
            Senator Warnock..........................................   131
    Claudia Slacik, of New York, to be a Director of the Securities
      Investor Protection Corporation................................    11
        Prepared statement...........................................    92
        Biographical sketch of nominee...............................    93
        Responses to written questions of:
            Chair Brown..............................................   132
            Senator Scott............................................   132
            Senator Menendez.........................................   133
            Senator Warnock..........................................   134

                                     (iii)

    William Brodsky, of Illinois, to be a Director of the Securities
      Investor Protection Corporation................................    12
        Prepared statement...........................................   101
        Biographical sketch of nominee...............................   103
        Responses to written questions of:
            Chair Brown..............................................   134
            Senator Scott............................................   135
            Senator Menendez.........................................   136
            Senator Warnock..........................................   136

                  Additional Material Supplied for the Record

    Letters submitted regarding nominees.............................   138
    ``The NCUA Must Step Up for Overseas Sevicemembers'', Credit
      Union Times, by Mary McDuffie..................................   178

     NOMINATIONS OF TANYA OTSUKA, MARK UYEDA, SPENCER BACHUS III, JENNIFER
                   FAIN, CLAUDIA SLACIK, AND WILLIAM BRODSKY

                                  ----------

                           THURSDAY, OCTOBER 19, 2023

                                           U.S. Senate,
              Committee on Banking, Housing, and Urban Affairs,
                                                        Washington, DC.
        The Committee met at 10 a.m., in room SD-538, Dirksen
    Senate Office Building, Hon. Sherrod Brown, Chair of the
    Committee, presiding.

                OPENING STATEMENT OF CHAIR SHERROD BROWN

        Chair Brown. The Senate Committee in Banking, Housing, and
    Urban Affairs will come to order. Thank you for joining us.
    Senator Rounds will be Ranking Member today. Welcome back. He's
    done that before.
        Senator Rounds. Thank you, sir.
        Chair Brown. I like the relationship. I'd like to thank
    Senator Sinema for her years on the Committee in her service.
    She is moving to the Appropriations Committee. I welcome
    Senator Butler from California. She, unfortunately, soon after
    being sworn in, she is sick. Nothing serious, but will be back
    likely next week. We're excited to work with her.
        The Committee meets today to consider six nominations. Four
    of whom are renominations. Ms. Tanya Otsuka, to be a Member of
    the National Credit Union Administration Board. Welcome.
        The Honorable Mark Uyeda, nominated to be Member of the
    Securities Exchange Commission. Welcome back.
        The Honorable Spencer Bachus, whom I served in the House
    with renominated to be a Member of the Board of Directors of
    Ex-Im Bank. Welcome back, Congressman Bachus.
        Ms. Jennifer Fain, to be Inspector General of Federal
    Insurance Deposit Corporation. Welcome, Ms. Fain.
        The Honorable Claudia Slacik, renominated to be a Director
    of the Securities and Investor Protection Corporation. Welcome
    back, Ms. Slacik.
        And the Honorable William Brodsky, renominated to be
    Director of the Securities Investor Protection Corporation.
    Welcome back, Mr. Brodsky.
        We thank the nominees for appearing today. We especially
    thank them for their willingness to serve, in the case of
    pretty much all of you, to continue to serve your country.
    These nominees will play an important role in the success and
    stability of our financial system, if confirmed. We look
    forward to that. I would like to talk for a moment about each.
        I will spend more of the time talking about the one of the
    six, that I know the best, who has served in this Committee--is
    actually still serving this Committee, and is not used to
    sitting there looking in this direction. I met her parents, and
    her husband, and her young son, Adrian, and her sister today.
        The President's nominated Tanya Otsuka to be a member of
    the National Credit Union Administration Board. She would be
    the first Asian-American to serve on that board in the agency's
    53-year history. She's exceptionally well qualified. She served
    as a key member of my Banking and Housing Committee staff.
        She crafted legislation, she provided strategic advice on
    banking issues and credit union policy understanding. She's no
    longer doing credit union issues for the Committee now that
    she's been nominated. She's a career public servant. She first
    joined this Committee in 2019 as a legislative fellow detailed
    from the FDIC. She became a permanent member of my team in 2020
    where she currently serves as senior counsel.
        Within days of her joining the Committee, coronavirus
    pandemic endangered our financial system. Ms. Otsuka
    immediately got to work with then Chair Crapo's staff, I was
    Ranking Member at that time, on critical provision of the CARES
    Act and so that our credit union system would remain strong,
    and viable, and stable as it has.
        When our financial system was tested earlier in the year by
    the largest bank failures since 2008, Ms. Otsuka worked to keep
    Committee officers informed about the rapidly involving
    evolving situation. She was in constant contact with regulators
    and other stakeholders.
        She's played a pivotal role in legislation advanced by the
    Committee this year, including surprise to many, the RECOUP
    Act, to hold failed big bank executives accountable. We voted
    out of this Committee, again, a surprise to people that we
    could work together on something so contentious and difficult
    that many banks didn't want. We passed it out 21-2. Ms. Otsuka
    has played a big role in that, and I thank her for that.
        River City Federal Credit Union out of San Diego wrote to
    the Committee--out of San Antonio, excuse me, wrote to the
    Committee, ``We appreciate Tanya's work to raise a visibility
    of credit unions, remove barriers to growth, and support credit
    unions in deepening their impact in the communities they
    serve.''
        Michael Adelman, whom I know, President, CEO of the Ohio's
    Bankers League, wrote, ``While we may have differed on specific
    policy decisions, Ms. Otsuka did her homework, gave OBL and
    other interested parties a fair shake. She welcomes a diversity
    of views. She's the type of regulator we ought to have in these
    critical economic positions.'' Congratulations on your
    appointment, Ms. Otsuka.
        The President has renominated Mark Uyeda to a full term in
    the SEC. He served as a board member of the commission since
    last year. Prior to his confirmation, Mr. Uyeda was detailed to
    then Ranking Member Toomey's staff from the SEC. He first
    joined the SEC in 2006. He served in several roles, including
    counsel for Commissioners Paul Atkins and Michael Pievar, as
    well as senior advisor to Chair Jay Clayton. Early in his
    career, he worked in private law practice as well as for the
    California Department of Corporations. Welcome back, Mr. Uyeda.
        The President has renominated Congressman Bachus to the Ex-
    Im Bank Board. Spencer Bachus first joined Ex-Im as a board
    member in 2019, along with Judith Pryor and then Chair,
    Kimberly Reed. He played an important role in helping reopen
    Ex-Im Bank after an unfortunate 4-year partial shutdown.
        For 12--oh, I'm sorry, for 22 years, Congressman Bachus
    represented Alabama's 6th District. He joined the House of
    Representatives the same day I did many years ago. He was Chair
    and Ranking Member in on that Committee. Good to see you again,
    Congressman.
        The President has nominated Jennifer Fain to be Inspector
    General of the FDIC, a role that carries great importance given
    the recent bank failures. She brings years of audit
    inspections, evaluations, and investigations experience,
    including in the areas of financial services and consumer
    protection. She possesses extensive experience in Federal
    Government oversight, serving in several agencies, Inspector
    General offices.
        More recently, she served in senior leader leadership roles
    at Ex-Im Bank Office of Inspector General, notably as Deputy
    Assistant IG for Inspections and Evaluations. Prior to joining
    Ex-Im Bank, she served in IG offices at HUD, FHFA, and in the
    U.S. Election Assistance Commission. Glad to see you, Ms. Fain.
    Thanks for coming.
        We'll also consider the nominations of two qualified
    nominees to the board of directors of the Securities Investor
    Protection Corporations, Claudia Slacik and William Brodsky.
    Both nominees have significant financial services experience.
        Ms. Slacik possesses some 30 years of financial services
    experience both in the public and private sector. The Senate
    confirmed her by voice vote to the SIPC board last year. She
    currently serves as Chair. Prior to serving on SIPC, Ms. Slacik
    was the Chief Banking Officer, Export-Import Bank. She served
    in senior level roles at several large banks before entering
    public service. Glad to see you again, Ms. Slacik.
        Last, Mr. Brodsky possesses five decades of securities and
    investment business experience. The Senate confirmed him to the
    SIPC board last year, similar to Ms. Slacik by voice vote.
    During his career, he has worked in senior level roles at
    several major exchanges, including the American Stock Exchange,
    the Chicago Mercantile Exchange, and the Chicago Board Options
    Exchange, where he was Chair and Chief Executive Officer.
    Welcome, Mr. Brodsky. Thank you for joining us.
        If all of you would please stand for the oath, please.
        Senator Britt. Let him go first.
        Chair Brown. Oh, I'm sorry. You make your statement, then
    we do the oath. Sorry about that. Sit back down.
        [Laughter.]
        Sorry about that. Six of you is overwhelming, so. Sorry, go
    for it. Sorry.

                OPENING STATEMENT OF SENATOR MIKE ROUNDS

        Senator Rounds. Well, and we're keeping you all to
    ourselves right now as well. First of all, thank you, Mr.
    Chairman. And I want to say welcome to all of our nominees. I
    commend each of you for your desire to serve the American
    people. With six nominees today, I will try to move through
    each of you rather quickly.
        Congressman Bachus, welcome back to Capitol Hill, and
    congratulations on being renominated for a position on the
    board of the Export-Import Bank. The Ex-Im Bank is a valuable
    tool for promoting U.S. exports economic growth and job
    creation. In the face of an increasingly competitive global
    market, I believe American companies must be able to
    effectively compete on the international stage. I look forward
    to hearing ways you believe the Ex-Im Bank can continue to be
    effective, especially as countries like China bolster their own
    companies by guaranteeing export loans.
        Mr. Uyeda, in your capacity as a member of the Securities
    and Exchange Commission for the last year, you have been an
    independent voice of reason, pushing back against harmful
    policies that aim to overhaul our capital markets.
        Over the last 3 years under Chair Gensler's reign, the SEC
    has issued dozens of complex rulemakings that will hurt markets
    and investors. Mr. Uyeda, I am confident that you will continue
    to act as that rational voice to promote policies that will
    strengthen our capital markets while protecting investors, not
    attempt to legislate through rulemaking.
        Turning to Ms. Fain, during the Obama administration, the
    Department of Justice and financial regulators initiated the
    controversial Operation Choke Point. The program aimed to
    pressure banks into withholding their services from completely
    legal industries that the Administration didn't support, such
    as firearm manufacturers and payday lenders. The FDIC's own
    Inspector General, the position for which you are nominated,
    determined that FDIC personnel singled out these businesses in
    line with a widely held belief that senior FDIC officials
    disapproved of the businesses.
        I fear that there are individuals in the Biden
    administration who still advocate for the core principle of
    Operation Choke Point, which involves the abuse of regulatory
    power to restrict financial access to lawful businesses that
    happen to be politically disfavored.
        Ms. Fain, if confirmed, I'd charge you to use your 22 years
    of experience in Federal oversight to make sure the FDIC
    adheres to its mission of promoting stability and public
    confidence in our financial system, rather than playing
    politics with American companies.
        Ms. Otsuka, we know financial institutions are fully
    capable of pricing risks into their business decisions,
    including risks from changing customer preferences over time. I
    am extremely concerned financial regulators are trying to
    allocate capital away from carbon emitting industries,
    including agriculture to those deemed to be sufficiently green.
        For example, NCUA has warned that credit unions and I
    quote, ``May need to consider adjustments to their fields of
    memberships, as well as the types of loan products they
    offer,'' because of climate change. In the Upper Midwest,
    producers rely on access to credit from their local credit
    unions and other financial institutions for the financing of
    their farming and ranching operations. They feed the world.
        Ms. Otsuka, as we discussed, and I really appreciated our
    discussions in my office, I remain concerned about unintended
    consequences from the misapplication of climate financial risk
    considerations, especially if credit unions are pressured to
    unnecessarily avoid and/or reduce serving certain industries
    like agriculture if an examiner deems it too risky based on
    climate change.
        We don't need bureaucrats telling farmers, ranchers, and
    the credit unions that support them and tell them how to run
    their operations, especially bureaucrats that believe chocolate
    milk may come from brown cows. You're supposed to laugh at
    that, by the way.
        [Laughter.]
        I look forward to discussing ways NCUA can engage with the
    agricultural community to protect access to their capital. I
    also want to thank you for your service to Chairman Brown's
    team and the Committee at large.
        Finally, we have two nominees before us today who have been
    renominated to the Securities Investor Protection Corporation,
    or SIPC, which serves as a liquidator for broker-dealers that
    experience financial troubles or are forced into bankruptcy,
    and protects against the loss of cash and securities.
        Since its creation, SIPC has helped to recover $141.8
    billion in assets. Ms. Slacik and Mr. Brodsky, I look forward
    to learning more from you during this hearing on your plans to
    protect American families. I will note that the Banking
    Committee's last SIPC oversight hearing took place in 2015. I
    believe we should be more diligent in conducting our oversight
    role here so that the public has a better understanding of the
    functionality of SIPC.
        I will close by saying that Americans are frustrated,
    deeply frustrated by the actions of regulators that are hurting
    their businesses, families, and interfering in their daily
    lives. It is our role in the Senate to scrutinize and evaluate
    each nominee who comes before this Committee. The decisions you
    make in your respective roles, if confirmed, will have a
    bearing on the quality of life for American families. We are
    entrusting you with very real and serious responsibilities.
    Thank you, Mr. Chairman.
        Chair Brown. Thank you, Senator Rounds. As a kid who is a
    Democrat, who milked Guernsey cows, reddish-brown cows, as a
    kid, I can assure you that chocolate milk doesn't come from
    those kinds of cows, so.
        [Laughter.]
        Senator Rounds. Spoken like a real egg.
        Chair Brown. Yeah. Please stand, for real this time, and
    raise your right hand. Thank you.
        [Witnesses sworn.]
        Chair Brown. OK. Thank you all. Please be seated. If any of
    you, as you speak, as you testify, would like to introduce
    friends or family members, certainly include that in your
    testimony, and I won't count that against your 5 minutes. So,
    Ms. Otsuka, if you would begin. Ms. Otsuka.
        Ms. Otsuka. Thank you, Senator.

     STATEMENT OF TANYA OTSUKA, OF VIRGINIA, TO BE A MEMBER OF THE
                  NATIONAL CREDIT UNION ADMINISTRATION

        Ms. Otsuka. Chairman Brown, Ranking Member Rounds, and
    distinguished Members of the Committee, it is an honor to
    appear before you today. Thank you to President Biden for
    nominating me and to Senator Brown for his support. I also want
    to thank the Senate Banking, Housing, and Urban Affairs
    Committee staff, and the member staffs for their well wishes,
    and most importantly, for the work they do every day to serve
    the American people.
        With me today are my spouse of 10 years, Matt, our son
    Adrian, and my sister Natalie. Also with me today are my
    parents, Cary and Sima Otsuka, who worked and sacrificed so
    that my sister and I would have everything we needed to
    succeed. They instilled in me a strong work ethic, sense of
    purpose, and respect for others. I would not be sitting here
    today without their love and support.
        I'm honored and humbled to be nominated to serve on the
    board of the National Credit Union Administration. The NCUA's
    mission of ensuring a strong system of cooperative credit is
    one that resonates with me both personally and professionally.
        Growing up, I spent many summers with my paternal
    grandparents listening to my grandmother tell me stories about
    her childhood. During World War II, she and her family were
    sent to an internment camp in Arkansas, forced to leave behind
    most of their possessions, including their family farm in
    California.
        For the rest of the war, my grandmother and her family were
    incarcerated in a prison-like compound, surrounded by barbed
    wire because they were Americans of Japanese descent. At the
    same time, her brother fought overseas in the 442nd Regiment of
    the U.S. Army. My grandfather and his family shared a similar
    fate, forcibly incarcerated in Arizona.
        My grandmother recounted how difficult it was after the war
    to make ends meet when she and her family had lost everything.
    Like my grandparents, many Japanese Americans face the same
    struggle and were often met with discrimination when they tried
    to deposit money or get a loan. Some took matters into their
    own hands, forming a credit union so that Japanese Americans
    could access financial services and help each other rebuild
    their lives.
        Today, that credit union is still active and insured by the
    NCUA. Experiences like this embody the cooperative spirit and
    exemplify the important role that credit unions play in our
    communities and economy. It is fitting that today is the 75th
    anniversary of International Credit Union Day, which celebrates
    the credit union movement's mission of financial inclusion.
        As a career public servant with over a decade of experience
    in financial services law and policy, I also have a deep
    appreciation for the role that independent agencies like the
    NCUA play in maintaining stability and public confidence in our
    financial system. I began my career as an attorney at the
    Federal Deposit Insurance Corporation in the wake of the 2008
    financial crisis.
        During my 10 years at the FDIC, I gained experience in
    supervision, enforcement, resolution, assessments, and deposit
    insurance, all of which are also critical functions of the
    NCUA. I worked on the implementation of a number of FDIC policy
    actions, including many related to the Dodd-Frank Act and S.
    2155.
        For the last several years, I've had the honor of serving
    on the staff of the Senate Banking and Housing Committee,
    managing a wide range of financial services issues, including
    credit union policy and oversight. I'm grateful to Senator
    Brown for this opportunity and to Senator Crapo, who was the
    Chair of the Committee in 2019, allowed me the opportunity to
    serve as a legislative fellow on detail from the FDIC.
        During my time on the Committee, I have had the privilege
    of working with his staff, Senator Toomey's staff Ranking
    Member Scott's staff, and the staffs of the Members of this
    Committee. Together, we have worked on a number of bipartisan
    bills, including the CARES Act, which helped maintain the
    strength of the credit union system and allowed credit unions
    to support their members and communities through the COVID-19
    pandemic. I have seen the positive impact of Government working
    for the American people to maintain a safe and sound financial
    system, especially in times of uncertainty.
        I hope to continue my public service in support of the
    NCUA's critical mission and to ensure a fair, competitive, and
    resilient credit union system. If confirmed, I will remain
    committed to the millions of Americans who rely on the NCUA to
    safeguard their hard-earned money. Thank you, and I look
    forward to your questions.
        Chair Brown. Thank you, Ms. Otsuka.
        Mr. Uyeda.

     STATEMENT OF MARK UYEDA, OF CALIFORNIA, TO BE A MEMBER OF THE
                   SECURITIES AND EXCHANGE COMMISSION

        Mr. Uyeda. Chairman Brown, Ranking Member Rounds, and
    Members of the Committee, thank you for the opportunity to
    appear before you today. Joining me in the hearing room is my
    wife Masae, and watching remotely from California are other
    members of my extended family.
        In May, 2022, I was privileged to appear before the
    Committee as the nominee to fill the 12 months of then-
    remaining former Commissioner Elad Roisman's term. I'm grateful
    for the Committee's support then. I thank the President for his
    nomination to serve a full 5-year term as a member of the
    Securities and Exchange Commission. If confirmed, I would be
    able to continue to contribute to an agency where I've served
    since 2006.
        As the first Asian Pacific American to serve as an SEC
    Commissioner, I grew up in a world where many immigrant
    families ran small businesses. My first job was spending my
    teenage summers with my grandfather on his delivery route,
    where he drove a small truck bringing fresh produce from the
    Los Angeles wholesale market to restaurants and retailers,
    which were often small businesses themselves.
        For these small enterprises, capital was not always easily
    obtainable. Nevertheless, their owners had the opportunity to
    create and grow businesses that served customer needs, provided
    jobs, and generated economic activity. An environment amenable
    to creating those opportunities is what makes America a special
    place for hardworking and innovative entrepreneurs.
        The past 16 months of as Commissioner have been the most
    fulfilling and humbling time of my public service. Since taking
    office, I've provided input and voted on the proposal or
    adoption over 40 SEC rulemakings that touch upon nearly all
    aspects of the capital markets and its participants.
        When evaluating the SEC's policy initiatives, I draw upon
    my diverse experiences of nearly 30 years, including as a
    corporate lawyer in private practice, as a state securities
    regulator at the California Department of Corporations, as a
    member of the SEC staff, and as a detailee to the Senate
    Committee on Banking, Housing, and Urban Affairs.
        One lesson that I have learned from these experiences is
    the need to carefully assess the cost of regulatory activity
    relative to its benefits. Many of these costs are passed on to
    the workers and retirement savers who are investing for their
    future.
        Given the SEC's critical role in overseeing our country's
    capital markets, promulgating regulations that are based on
    data, cost effective, and aimed at addressing identified issues
    of utmost importance. Consideration should be given to
    appropriately scaling our roles and implementation timelines so
    it's not to have a disparate impact on small businesses,
    including those owned by women and minorities.
        Investors from around the world are willing to place their
    capital at risk in our markets due, in part, to our regulatory
    structure being perceived as effective, efficient, and
    rationally applied. It's important that the SEC'S rules
    continue to meet these expectations. Keeping our markets
    robust, liquid, and vibrant means both facilitating capital
    formation for companies and protecting investors. One cannot
    exist without the other to close.
        To close, I would like to express my gratitude and
    appreciation for the work of my fellow commissioners and the
    staff of the SEC. Their efforts to carry out the agency's
    mission of protecting investors, maintaining fair, orderly, and
    efficient markets, and facilitating capital formation continues
    to inspire me every day. Thank you, and I look forward to your
    questions.
        Chair Brown. Thank you, Mr. Uyeda.
        Congressman Bachus is welcome.

    STATEMENT OF SPENCER BACHUS III, OF ALABAMA, TO BE A MEMBER OF
            THE BOARD OF DIRECTORS OF THE EXPORT-IMPORT BANK

        Mr. Bachus. Hearing from my fellow nominees about their
    past and their stories is really gratifying. It makes us really
    appreciate our country much more that we can improve a lot over
    generations.
        Chairman Brown, Ranking Member Rounds, and other Members of
    the Committee, I was afforded the opportunity to meet with many
    of your staffers. I see some of them up there on the dais with
    you, and we had some very meaningful conversations. They asked
    many questions, and I think I answered a lot of them.
        If I'm approved for another term on the Export-Import Bank,
    I would consider it a privilege. I've really enjoyed my past
    term on the board. I think what I've enjoyed the most is
    visiting small towns, small businesses, women-owned businesses,
    minority businesses. We just approved--I was not on the board,
    but we just approved our first thing under the Make More in
    America. And it was a minority-owned business.
        And I visited Dickinson, North Dakota, and there's a
    company there that is the only company in the United States
    that produces a part for our F-35 and our nuclear submarines.
    Other than that company, we have to rely on foreign sources,
    and some of those, quite frankly, are belligerent to our
    interest.
        My wife Linda couldn't be here. She and four of my five
    children were here last time. But I think events in the House
    and the invasion of the Capitol has scared off my children. And
    I think that she is having eye surgery and isn't with me, but
    I'd like to acknowledge her. She's been an important part of my
    life and of any success and accomplishments that I've had.
        When I testified before you in 2017, and it was '17, I
    wasn't appointed till '19, we had undergone a pretty dramatic
    event at Export-Import. We were reauthorized, but we did not
    have a quorum. And that existed for 4 years. During that period
    of time while we were inactive, our competitors were not.
        And unfortunately, they captured market share and resulted
    in several of our companies losing market share, actually, some
    of them going out of existence. And I sort of was there to
    witness that. It was very sad. But we do have a quorum now. We
    have new assignments from the Senate and from the White House.
    I want to thank President Biden for nominating me for a second
    term.
        I'd be happy to answer any of your questions about any of
    our programs. I will say that talking to staff, I think they
    honed in on the China and Transformational Exports Program. And
    we have three of those programs that we've approved. I mean, we
    have more than three. We have several. But there's three that
    I'd like to just quickly mention.
        One is Bridges for Cameroon, and it is the steel industry.
    Senator Vance yesterday expressed his desire that when we talk
    about transformational assets, we don't forget about our basic
    industries. You know, agricultural products and other things.
    And a small company in Chicago, based in Chicago, we'll supply
    girder modular bridges for Cameroon. And we had intense
    negotiation over 3 years to take that from China.
        We also had two solar projects. One was in Honduras.
    Another one was in Angola. Now, we usually do business where
    there's risk. We don't function if there's no risk. And we have
    banks that partner with us on all these projects. Having said
    that my time is up. I look forward to your answers.
        Chair Brown. Thank you very much, Congressman.
        Ms. Fain, you're welcome. You're recognized for 5 minutes.
    Thank you.

       STATEMENT OF JENNIFER FAIN, OF VIRGINIA, TO BE INSPECTOR
                   GENERAL, FEDERAL DEPOSIT INSURANCE
                              CORPORATION

        Ms. Fain. Good morning, Chairman Brown, Ranking Member
    Rounds, and Members of the Committee. It's an honor to appear
    before you today as the President's nominee to serve as the
    Inspector General for the Federal Deposit Insurance
    Corporation.
        I would first like to thank my family, especially my
    husband, Kevin, who is here today, and my two brothers and
    their families. My gratitude must begin with my parents who
    exemplified the opportunity of America and service to the
    country. My mother immigrated to the United States from South
    Korea and labored for years running her small restaurant. She
    has gone now, but still with me in so many ways.
        My father enlisted in the Army as a young man, and those
    years of military service served to inspired me to pursue a
    career in public service. For all of these family influences, I
    am profoundly grateful. I also thank my colleagues and mentors
    who have shared this professional journey with me. I would not
    be here without their support and encouragement over the years.
        I deeply appreciate the FDIC'S long-standing essential role
    in maintaining stability and public confidence in the U.S.
    financial system. The FDIC insures deposits; examines and
    supervises financial institutions for safety, and soundness,
    and consumer protection; makes large, complex financial
    institutions resolvable; and manages receiverships. Simply put,
    the FDIC helps protect individual Americans who place great
    trust in our Nation's banks.
        As an independent organization, the FDIC Office of
    Inspector General plays a vital oversight role in ensuring the
    integrity and accountability of FDIC programs. The OIG conducts
    audits, evaluations, and reviews. It also pursues criminal and
    administrative investigations relating to FDIC employees,
    contractors, and financial institutions.
        Importantly, OIG's mission is not simply to identify issues
    of concern, but to also to recommend corrective actions for
    their prevention. This proactive function is essential to
    improve and strengthen the effectiveness and integrity of the
    agency. The OIG contributes to the successful accomplishment of
    the agency's mission.
        I have valued this critical role based on serving for over
    22 years in the Federal Inspector General community, most
    recently as the Deputy IG at the Export-Import Bank of the
    United States. Previously, I acted in the role of IG for nearly
    3 years, where I led a team of auditors, investigators, and
    analysts providing independent oversight of Ex-Ims programs and
    operations.
        Our office's accomplishments depended on the contributions
    of exceptional staff, and my main goal was to empower them to
    succeed. I carry these lessons in leadership with me today. My
    extensive oversight experience in financial services and
    consumer protection matters provided deep foundation for me to
    serve as Inspector General for the FDIC.
        In prior management positions at Ex-Im OIG, I directed
    complex financial and performance audits and evaluations, and
    inspections of multimillion-dollar international transactions.
    I also held leadership positions in OIG offices at the Federal
    Housing Finance Agency and the Department of Housing and Urban
    Development, which broadened my expertise in oversight for
    other agencies and disciplines, particularly for consumer
    protection.
        My appreciation for public service actually dates back to
    the beginning of my Federal career in 1994 when I was a student
    intern in the accounting division of the United States Mint.
    After graduating from college, I worked in HUD OIG's Denver
    field office, where for several years I conducted and
    supervised audits of HUD programs throughout the Rocky Mountain
    region.
        I met with individuals from all walks of life who were
    affected by those programs, including lenders and loan
    recipients. Those conversations and experiences made a lasting
    impression on me. They illuminated the direct impact that OIG
    oversight can have on the lives of Americans and the importance
    of OIG staff individual contributions. This perspective will be
    essential for me to successfully lead the FDIC OIG.
        It would be an honor to serve as the Inspector General of
    the FDIC. I would be committed to delivering results in an
    independent and objective manner on the effectiveness and
    efficiency of FDIC's programs and operations, which ultimately
    would benefit the American people. Thank you for considering my
    nomination. I look forward to working with you and your staffs,
    if I am confirmed. I'm happy to answer any questions you may
    have.
        Chair Brown. Thank you, Ms. Fain.
        Ms. Slacik, welcome.

     STATEMENT OF CLAUDIA SLACIK, OF NEW YORK, TO BE A DIRECTOR OF
                   THE SECURITIES INVESTOR PROTECTION
                              CORPORATION

        Ms. Slacik. Chairman Brown, Ranking Member Rounds, and
    distinguished Members of the staff and the Committee, it's an
    honor to appear before you today and it's really an honor to
    appear with this panel that is so impressive. Their personal
    stories are just so impressive.
        I'm grateful to be nominated by the President for
    reappointment to a full term as a member of the Board of
    Directors of SIPC. If confirmed, I would be honored to continue
    to serve and do all I can do in that capacity to protect
    investors and to promote confidence in the U.S. securities
    markets.
        Before presenting my background, let me first introduce you
    to the members of my family who are here with me today. First,
    my wife, Susan Davis, who was born and raised in Louisiana, and
    who has dedicated most of her professional life and service to
    impoverished people in the neediest parts of the world.
        And second, my brother Kurt Slacik, who was born in New
    York State, and who is now a senior executive at a steel mill
    in Pennsylvania. Three of my five beautiful and smart nieces
    are also with me today, Sophia, Katherine, and Samantha.
        As for myself, I was born in upstate New York, and grew up
    there as well as in New Jersey, Illinois, Connecticut,
    California, and Massachusetts. I also spent 5 years in
    Brussels, Belgium. I'm a product of both public and parochial
    schools, received my undergraduate degree from Smith College
    and my MBA from New York University. My parents are both
    deceased, but were the children of people who immigrated to the
    United States from Eastern Europe in the early 1900s. I have
    three other siblings who live in Florida, California, and
    Nevada.
        As for myself, I spent 35 years in the U.S. financial
    services industry, mostly as a commercial lender at
    corporations--hello, Senator.
        Senator Tester. Hi.
        Ms. Slacik. ----and an international trade finance
    specialist. I have also experience in corporate restructurings,
    risk management, and general management. I've served on the
    boards of several companies, both public and private, with a
    specialty in audit committees, and I've served on several not-
    profit boards as well.
        Before beginning my service as SIPC chair in 2022, my most
    recent professional position was as the Chief Banking Officer
    of the Export-Import Bank, where my staff and I analyzed
    billions of dollars of transactions for small, medium, and
    large companies, which supported hundreds of thousands of jobs
    for Americans.
        My responsibilities included expanding the public's
    awareness of the bank and overseeing the due diligence and
    underwriting of transactions greater than $10 million before
    they were presented to the bank's board of directors. My close
    working relationship with the board allowed me to gain a keen
    appreciation for the role and responsibility of Presidentially
    appointed boards.
        Since early 2022, I've served as the Chair of SIPC'S Board
    of Directors. During that time, SIPC has continued to increase
    its reserves, and to adapt to new technologies and changes in
    the securities industry. In addition, SIPC has overseen the
    closing of the liquidation of Lehman Brothers in which 110,000
    customers achieved 100 percent recovery of all nearly $106
    billion of customer property at no cost to SIPC or to the
    American taxpayer.
        Moreover, the trustee and the SIPC initiated liquidation of
    the Bernard L. Madoff Investment has resulted in tremendous
    recovery efforts and recouped and distributed more than $14
    billion to investors. That's 70 percent of the funds deposited
    with that firm.
        I recognize the importance of SIPC to retail investors and
    the vital role it plays in the country's financial system. By
    ensuring that individual investors' securities accounts are
    protected when a broker-dealer fails, SIPC promotes investor
    confidence in our U.S. securities markets. In addition to
    protecting individual investors from financial hardship, SIPC
    helps to insulate the markets from disruption which can follow
    any brokerage firm failures.
        If confirmed, I will support SIPC's mission to guard
    investors in the always evolving securities markets. I pledge
    to act vigorously as a principal advocate for robust investor
    protection. I further pledge to work diligently with the
    Members of the Committee to address your concerns, and keep you
    informed of SIPC's activities.
        Thank you for your time and consideration of my nomination.
    I look forward to answering any of your questions.
        Chair Brown. Thank you, Ms. Slacik.
        Mr. Brodsky, you're welcome.

    STATEMENT OF WILLIAM BRODSKY, OF ILLINOIS, TO BE A DIRECTOR OF
                   THE SECURITIES INVESTOR PROTECTION
                              CORPORATION

        Mr. Brodsky. Thank you, Mr. Chairman, Senator Rounds, and
    Senator Tester. It's a pleasure to appear before you today. I'm
    honored to appear as one of President Biden's nominees to serve
    on the board of the Securities Investor Protection Corporation.
        Before presenting my background, let me first introduce to
    you the members of my family who are here with me today. My
    wife Joan, who's been my wife and partner for over 50 years.
    Our son, Michael, and his wife Aleta Margolis, are also here
    with me today.
        I believe that I'm well qualified to continue to serve on
    the Board of SIPC based on my lifetime career in the investment
    business, and specifically based on my experience in the
    securities industry. If confirmed, I will look forward to
    working with the Committee to ensure that investors do not lose
    their hard-earned assets as a result of a brokerage firm
    failure.
        My career in the securities industry spans more than 50
    years. I began my career on Wall Street serving summer
    internships that included working on the floor of the New York
    Stock Exchange. I had summer jobs in three securities firms on
    Wall Street while still in college. And after graduating from
    law school, I worked at an international securities brokerage
    firm as an attorney in the law and compliance division, and
    where I learned all aspects of the business.
        In fact, I was on Wall Street when brokerage firms were
    failing, and many customers lost all their investments because
    SIPC had not yet been created. So I know from personal
    experience the vital role that SIPC plays in providing
    confidence to investors in having faith in the safety and
    soundness of the assets they entrust to their broker-dealer.
        I next joined the American Stock Exchange, first as a
    lawyer in its policy planning and Government relations
    department, and ultimately rising to become Executive Vice
    President for operations. In 1982, I moved to Chicago to become
    Executive Vice President and Chief Operating Officer of the
    Chicago Mercantile Exchange, now known as the CME Group.
        In 1985, I was named President and CEO of the CME, and
    served in that role until 1997 when I moved across town to
    become Chairman and CEO of the Chicago Board Options Exchange,
    now known as CBOE Global Markets. I served in that position
    until 2013 when I stepped down as CEO, but remained as chairman
    until 2017. I guided CBOE's demutualization leading to it
    becoming a public company, and with its shares becoming part of
    the S&P 500 stock index. During my tenure at CBOE, I also
    served as Chairman of the World Federation of Exchanges, an
    association of the largest exchanges in the world.
        For the past 6 years--I don't want to retire, by the way.
    As you can tell!
        [Laughter.]
        For the past 6 years, I've served as Chairman of Cedar
    Street Asset Management, an SEC-registered investment advisor,
    founded by my son, Jonathan, that invests exclusively in non-
    U.S. stocks on behalf of individual and institutional
    investors.
        I also serve as chairman of another SEC-registered
    investment advisor, Option Solutions, founded by son, Michael,
    who sits behind me, that provides investment management
    services to investors. I also serve as an advisor to Madison
    Dearborn Capital Partners, a private equity firm, and OCA
    Ventures, a venture capital firm, both of which are based in
    Chicago.
        I've served on the board and as trustee for several public
    companies, private companies, and nonprofit organizations.
    Among these, I've served as Chairman for 11 years of the
    Investment Committee of Northwestern Memorial Hospital in
    Chicago, where we oversaw its multibillion-dollar portfolio.
    And I currently serve on the Investment and Endowment Committee
    of my alma mater, Syracuse University.
        I've utilized these experiences in my service on the SIPC
    Board because for the last 15 months, I've been Chairman of the
    Investment Committee of SIPC. During this period, SIPC'S fund
    reserve have reached their an all-time high, and my goal is to
    make sure that SIPC always has sufficient reserves and
    liquidity if a crisis were to arise.
        I affirm my deep commitment to investor education, customer
    protection, and to help maintain the credibility and importance
    that SIPC plays in the viability and integrity and importance
    of our securities markets to the citizens of our country.
        I believe SIPC's mission of protecting investors, and more
    broadly raising, the confidence in the U.S. securities markets
    is important. I have devoted my entire career to help further
    this country's capital markets to improving financial literacy,
    investor education, and to ensuring safety and soundness of our
    capital markets. If confirmed, I promise to work with Members
    of this Committee in advancing these shared goals.
        Mr. Chairman and Members of the Committee, this concludes
    my remarks. Thank you for your attention, and I'd be happy to
    answer any questions you may have.
        Chair Brown. Thanks, Mr. Brodsky. I'm going to yield the
    floor. First questions to Senator Tester.
        Senator Tester. Thank you, Mr. Chairman. I appreciate the
    courtesy, and thank you and Ranking Member Scott for having
    this hearing. And I want to thank all of you for your
    willingness to serve. I appreciate it very, very much.
        I'm going to start with you, Mr. Uyeda. First of all, thank
    you for the work you've done. I have led letters, joined
    efforts with my colleagues to highlight the importance of the
    SEC, to ensure that as you undertake proposals and proposed
    rulemaking that you take into consideration how it interacts
    with existing rules, and not only within the SEC, but other
    agencies. And I appreciate you guys taking that to heart moving
    forward.
        American markets are the gold standards. And I think that
    we need to be able to protect those markets, investors,
    facilitate capital formation, maintain fair, orderly, and
    efficient capital markets. It is fundamental if we're going to
    maintain that standard and it's fundamental for a functioning
    economy.
        Tell me how you achieve the goals of protecting investors
    while facilitating capital formation, and maintaining a fair,
    and orderly, and official capital market?
        Mr. Uyeda. Well, thank you, Senator Tester. I completely
    agree with you that our markets are the gold standard through
    the world, and that's one reason why we attract capital from
    around the world. The way I look at it, facilitating capital
    formation, maintaining fair, orderly, and efficient markets,
    and investor protection, they all go hand in hand. You cannot
    take out one of those elements and still have a world class set
    of capital markets
        To balance that, it's really important we do an effective
    economic analysis. We need to promptly identify the problems
    that we are trying to solve and address, make sure our rules
    and regulations are appropriately structured to address that
    problem. We do a robust economic analysis to look at what the
    costs are, both direct and indirect.
        We also think, as you pointed out, how it fits in with the
    rest of our rules statutes, but also within the broader
    financial regulatory system, which involves many other fellow
    regulators.
        Senator Tester. OK. Jennifer Fain, IGs are our eyes on
    agencies to be able to protect taxpayers and be able to protect
    taxpayers' dollars. You must be independent and be able to
    operate without political interference. I feel that is very
    important, not only from the agencies, but from here too. So
    the question becomes is how do you protect your independence,
    and how do you protect against interference in the office that
    you would run?
        Ms. Fain. Thank you for your question, Senator Tester.
    Independence is a critical requirement for the Office of
    Inspector General, and most certainly, for the Inspector
    General position. How I would lead or how I have done in my
    career with regards to independence is following the standards
    that guide the work that we conduct.
        Certainly, as it relates to the agencies and ensuring
    independence, it's critical that we maintain our independence
    and objectivity to ensure that the work that we conduct has not
    been interfered with, or directed, or someone has attempted to
    suborn our judgment.
        Senator Tester. OK. Thank you. Congressman Bachus, Chairman
    Spencer, thank you for being here. I come from the great State
    of Montana. We have a lot of small manufacturers, small
    businesses, rural areas, Tribal areas. I believe in the Ex-Im
    Bank strongly. I think it provides us the ability to be able to
    compete worldwide against other countries that have similar
    banks.
        But oftentimes I see hurdles or Ex-Im can't help some of
    these small folks, some small businesses. Number one, do you
    see those same hurdles? And number two, what can Ex-Im do
    without congressional intervention that will allow them to
    serve those small rural businesses, Tribal businesses better?
        Mr. Bachus. That's a great question. We are the most
    restricted of all ECAs. There are over a hundred ECAs. But for
    us to make a loan, our content requirements are higher
    sometimes because of the supply chain that's impossible. Some
    of our shipping requirements we often have to deal with
    additionality, and we're very careful to meet that. But we have
    a restricted view of that.
        But I would say our greatest problem is staff. We're
    understaffed. We're about 150 positions below where we're
    supposed to be. We have about 300 employees. At times, the bank
    has had 500, 600 employees. They're engineers, they're MBAs,
    they're accountants, and you know, it's hard to attract those
    people. And of course we have a net-zero appropriation.
        But I think we are weathering the storm. There are a few
    things that I think we could use. I know there's a bill before
    Congress to allow us to get records from the IRS to see whether
    people have paid their taxes. And we can't get that from the
    IRS.
        Senator Tester. Got you.
        Mr. Bachus. Just, you know, it sounds like a small problem,
    but, you know, we don't need to be loaning money from people
    who hadn't paid their taxes.
        Senator Tester. Now, my most important question, when
    Alabama plays Auburn in football, who do you root for?
        Senator Britt. Watch out.
        Mr. Bachus. Well, I've got two Auburn graduate--well, I've
    got the Auburn graduate over here, and I'm an Auburn graduate
    who went to law school at Alabama and representing the
    university. But I'm all Auburn.
        Senator Tester. Are you all Auburn?
        [Laughter.]
        Chair Brown. Great rivalry, the University of Montana and
    Auburn, I particularly enjoy watching.
        [Laughter.]
        Mr. Bachus. Well, we're just glad to give you all back
    Coach Harsin, I'll say that.
        Chair Brown. Senator Rounds.
        Senator Rounds. Thank you, Mr. Chairman. Ms. Otsuka--and if
    I'm mispronouncing your name, it's the Chairman's fault. OK?
    Thank you, again, for your service to this Committee as a
    member of the Chairman's team. I wanted to build off some of
    the comments that I made in my opening statement and our
    discussion the other day.
        It is critical that credit unions be able to serve farms as
    a part of the economy, and that regulators not stand in the way
    of that happening. Do you believe agriculture is a climate
    issue?
        Ms. Otsuka. Yeah. Thank you for the question, Senator, and
    thank you for the discussion that we had. It was really great
    to visit in your office.
        I think agriculture is a critical part of our economy in
    agricultural lending is a critical part of the economy. I think
    credit unions that serve agricultural communities, they
    understand the risks of the industry, they know the industry
    well. And they know how to manage those risks.
        And I think that's ultimately what needs to be assessed
    when regulators make sure that credit unions are engaging in
    safe and sound practices. I don't think they should be in the
    business of telling credit unions that they can't lend to
    ranchers or farmers as long as those credit unions are managing
    those risks appropriately and following the law.
        Senator Rounds. OK. So if confirmed, you will commit to
    working with stakeholders in the Ag community to preserve their
    access to capital?
        Ms. Otsuka. If confirmed, Senator, yes.
        Senator Rounds. OK. Thank you. Ms. Fain, if confirmed, it
    is critical that you be completely independent and vigorous in
    your auditing and investigatory work at the FDIC to hold
    partisan regulators accountable. The FDIC IG played a critical
    role when the FDIC, under Chairman Gruenberg, improperly sought
    to pressure banks to cutoff access to credit to companies they
    deemed to be politically unfavorable, such as firearm and
    energy businesses.
        Ms. Fain, if confirmed as the FDIC IG, would you commit to
    being independent and vigorous in your audits and
    investigations into the activities of the FDIC?
        Ms. Fain. Thank you, Senator, for the question. And
    absolutely, I would commit to being vigorous and independent in
    the work oversight work of the FDIC OIG. And I am familiar with
    the Operation Choke Hold issue, and certainly the work of the
    IG.
        And if confirmed, I would be interested in learning more
    about the agency's policies in advancing the safety and
    soundness of the financial system, and would certainly be
    welcome to follow up with you and your staff to discuss any of
    your concerns.
        Senator Rounds. Thank you very much. I appreciate that, and
    we'll take you up on that offer.
        Ms. Fain. Thank you.
        Senator Rounds. Thank you. Commissioner Uyeda, thank you,
    again, for being here and for your service. And, you know,
    you've been an SEC commissioner now for the last year. As I
    noted in my opening statement, the SEC has issued a dozens of
    rulemakings over the last 3 years. If finalized, these
    rulemakings will have overlapping implementation timelines, and
    often affecting the same or interconnected financial products
    and market sectors.
        Commissioner Uyeda, I would hope that you would agree that
    when conducting rulemaking, the Commission should consider
    known economic impacts, including the cumulative impact of
    concurrent rulemakings. Would you agree, sir?
        Mr. Uyeda. Senator, yes, I agree. Each individual
    rulemaking is not in itself in a vacuum, but operates and
    interacts with many other rules. And we really need to think,
    especially when we're making a lot of other changes at the same
    time, how they all interact together to pursue our goal of
    investor protection, fair, orderly, and efficient markets, and
    facilitating capital formation.
        Senator Rounds. Thank you. How do you weigh the benefits of
    a proposed rule against its cost, specifically, if the rule
    might have an outsized impact on small businesses and emerging
    fund managers?
        Mr. Uyeda. That is a very, very important issue. That is
    one that I have pressed. One of the most important things I
    think we can do for smaller investment advisors and smaller
    broker-dealers is give them a longer period to comply.
        Many times when you do a rule, there are a lot of details
    that still remain be worked out. It's much easier for those
    smaller entities to comply if those issues have already been
    solved, especially by those who have much more resources to
    work to come to solutions with the staff.
        Senator Rounds. Thank you.
        Thank you, Mr. Chairman.
        Chair Brown. Thank you, Senator Rounds.
        Ms. Otsuka, a two-part question. You started your career at
    FDIC, an independent financial regulator, before we were lucky
    enough to have you on our staff. You've been nominated to serve
    on another independent financial regulator, NCUA. Discuss why
    it's important for financial regulators to be independent, and
    tell me at the same time, same answer, what will some of your
    priorities be?
        Ms. Otsuka. Thank you for the question, Senator. The
    safety, and stability, and the resiliency of our financial
    system is important to the strength of our entire economy. And
    so I think financial regulators like the NCUA should be
    independent to promote market stability, predictability, and
    continuity. Americans need to have confidence that decisions
    that affect the financial system, that affect their
    pocketbooks, are made independently and based on data.
        At the same time, I think Congressional oversight of those
    independent agencies is important so that regulators are held
    accountable to the American people. If confirmed I will work to
    ensure that the NCUA fulfills its mission to protect the credit
    union system.
        One priority I would like to focus on, if confirmed,
    however, is to make sure that credit unions, especially smaller
    ones, can continue to stay competitive and provide affordable
    financial services to their members in a constantly evolving
    financial system. Small credit unions serve a lot of areas of
    this country that do not have access to financial services in
    the same way as other parts of the country. And so I think
    that's really critical to the strength of our overall economy.
        Chair Brown. Thank you. Ms. Fain, you have two decades of
    experience. Talk about how IG offices can promote transparency
    and efficiency in agency operations and agency programs, and
    tell us some of the lessons you've learned from various IG
    offices you've worked with.
        Ms. Fain. Thank you, Senator, for the question.
    Transparency is very key, if not a critical component, of the
    Inspector General mission and office, and in general. One way
    that Inspector Generals are able to contribute is through the
    reporting that they do. And it's key because off oftentimes you
    have agencies with programs and operations that can be opaque.
        And so the reporting that the Inspector General's offices
    complete an issue, not only to Congress, but the agency head,
    and are available to public, provide that inside look and
    understanding that taxpayers may not necessarily have with
    regards to the agency's operations.
        With my experience of 22 years with the inspector
    community, what I take from that is just the overall mission
    and the ability to have an impact on other people's lives
    beyond oneself. And personally, I like to fix things, and so I
    take great gratitude in the work that I've been able to conduct
    throughout my career, and make recommendations to agencies and
    departments that have provided solutions in instances where
    those agencies and departments can continue to build and do
    what they do best for the American public.
        Chair Brown. Thank you. Mr. Uyeda, you heard what Ms. Fain
    said about transparency. I'm not sure you understand the
    outrage by people in stock buybacks. Senator Vance and I have
    been intricately involved together on what happened in East
    Palestine with the train derailment. You may not know details,
    but you certainly know of it.
        What led up to that, in large part, is that Norfolk
    Southern laid off a third of its workforce. In the preceding
    years, executives took stock buybacks. Executives issued stock
    buybacks, took them to the tune of between $2 and $3 billion.
    Yet, you voted against better disclosure of cyberattacks and
    stock buybacks.
        I don't really understand why, in light of what Ms. Fain
    said and what we know, that disclosure shines a light and makes
    people behave better often, including railroad executives. Why
    would you do such a thing?
        Mr. Uyeda. Chairman Brown, first off, let me express full
    agreement that transparency is a very key part of the
    securities laws. And I think one of the fundamental parts is
    that for the capital market, especially, material financial
    information needs disclosed.
        In those two particular rules that you raised share
    repurchase in cyber security, there were a number of technical
    approaches that I had significant concerns for. For instance,
    on the security rule that you mentioned, for the first time,
    SEC actually mandated forward-looking statements, which is very
    unusual for us to do for a particular type of disclosure.
    Normally, our disclosures are based on things that you can
    prove as fact. That's one thing we look at on our enforcement
    efforts.
        So I had significant concerns about the forward-looking
    statement part. I realize my time is up. May I continue, I just
    finish my thought on share repurchase?
        Chair Brown. Sure. Of course.
        Mr. Uyeda. With respect to the share repurchase part, we've
    had disclosure for a while, but the daily disclosures came out
    that are filed at quarter end were more prescriptive than what
    we normally do. But I also had fairly significant concerns
    about how we're making a philosophical change on how we
    regulate foreign private issuers.
        Chair Brown. OK. Thank you for your response. I the
    president of the Richmond Fed told me many years ago, the
    former president, he said, ``Watch what we do, and let us know
    you're watching what we do.'' And you understand that.
        Senator Vance of Ohio.
        Senator Vance. All right. Thank you, Mr. Chairman, and
    thanks to the six of you for being willing to serve.
        I want to direct my questions to Commissioner Uyeda, in
    particular. You know, have written and said some interesting
    things about BlackRock and some of the large institutional
    asset managers. And I just want to sort of, you know, talk
    about that and talk about why I find it concerning, and why I
    think the SEC has a very, very important role here in
    monitoring the way in which these massive financial
    conglomerates have effectively consolidated, but also used that
    consolidation to push a certain political view into our
    economy.
        Underscore this point. In 2022, Berkshire Hathaway's,
    Charlie Munger, of course, one of the most famous investors
    over the last 50 years observed that we have a new bunch of in
    emperors, and they're the people who vote the shares in index
    funds.
        I think a lot of Americans, of course, own shares and index
    funds. They don't necessarily realize that when they hand their
    money over to an index fund, they're handing their money over
    to a very active political participant in our economy. And it's
    something that, I think, this Committee we should spend a lot
    of time on in the coming years.
        But Munger was specifically referencing the, ``Big Three,''
    asset managers. Could you just highlight why are they the Big
    Three? Who are the Big Three?
        Mr. Uyeda. With respect, generally, I believe Vanguard,
    Blackrock, and State Street are among the Big Three. There are
    a number of other big asset managers too, although I don't have
    the specific assets under management.
        Senator Vance. Yeah. So my staff has compiled that
    information for me. I'm sure you're not surprised by this, but
    these three asset managers control the three largest index
    funds.
        Together, they manage around $20 trillion in assets. An
    extraordinary amount of assets that they control. Accounts for
    about 34 percent of all mutual fund assets as of 2015. They
    market their funds as passive or as index tracking. In other
    words, if you sign up for an index fund, you don't think that
    you're signing up for an active participant in the market.
        But I'm curious, Mr. Uyeda, I mean, is that actually
    accurate when the American people think that they're giving
    their money over to an index fund, and it's just going to track
    the general trajectory of the stock market? Is that actually
    what happens, or do these index funds participate a little bit
    more aggressively in the management of some of these companies?
        Mr. Uyeda. Well, Senator Vance, I would distinguish between
    the fund itself and the advisor. The fund itself, investors----
        Senator Vance. Sure.
        Mr. Uyeda. ----are very much looking to something that
    tracks very closely. In fact, that one of the criteria you
    would look at is how closely does the return track, the
    underlying index. The managers themselves have voting power not
    only of the assets that are held in the index funds, but any
    other assets that that manager oversees, whether it's a
    collective investment trust, actively managed funds, separately
    managed account, and so on.
        Senator Vance. And am I right that they use their power as
    massive institutional investors to effectively direct steward
    stewardship activities, right, and this is the way in which
    they sort of use and infect their own politics into the
    management of some of these companies?
        Mr. Uyeda. Yes, Senator. That's correct. A lot of the
    advisors put out their stewardship policies and promote that.
        Senator Vance. So here's what I find a little bit weird,
    right? So there are 13(d) and 13(g) disclosures. OK? These
    index funds, which of these do they file, and why do they file
    those?
        Mr. Uyeda. My observation is most file on Schedule 13(g)
    for a passive investor.
        Senator Vance. And 13(g) allows them to avoid disclosure of
    a lot of their activities. Right? So there are a lot of things
    that you don't have to put in a 13(g) that you would have to
    put into 13(d). Is that right?
        Mr. Uyeda. That's correct.
        Senator Vance. And do we think that sometimes their
    activities rise to the level of actually statutorily requiring
    them to do a 13(d) disclosure?
        Mr. Uyeda. That would be a concern. Well, it's a facts and
    circumstance basis to the extent that one is trying to
    influence control over an issuer. And you can oftentimes do
    that with a very large stockholder that raises questions
    whether you ought to be found on 13(d) rather than 13(g).
        Senator Vance. Yeah. And I'm mindful of my time running
    short here, so I'll cut this off now. But, you know, something
    I'd like to work with you, Mr. Uyeda, and my staff here, is if
    they should be filing much more substantive disclosures that
    actually give the American people insight into how $20 trillion
    of their money is being spent, and yet they're filing a 13(g)
    disclosure. That probably means there's something going on.
        I don't want to put my tinfoil hat on here too much.
    Sometimes I do that in the Banking Committee, and the Chairman
    gets mad at me. But I really worry that there's a massive part
    of the American economy that lays hidden from the American
    consumers and from the lawmakers who represent them. That may
    be something is something we should look at. Thank you.
        Chair Brown. Senator Vance, I can't think of when I was mad
    at you, so.
        Senator Menendez is recognized. From New Jersey.
        Senator Menendez. Overdraft fees are borne almost
    exclusively by those who can least afford them. A 2021 report
    by the Financial Health Network found that nearly 60 percent of
    all overdraft fees in 2020 were paid by low and moderate income
    households, and about 25 percent were paid by Latino
    households, specifically.
        Some banks have either decreased or eliminated overdraft
    freeze altogether in large part due to increased scrutiny and
    oversight. But a recent report from California State regulator
    showed some credit unions took in $252 million in overdraft and
    nonsufficient fund fees in 2022. Thirty of the credit unions in
    the report earned half or more of their net profit just from
    overdraft and NSF fees.
        Ms. Otsuka, can you commit to looking into this and seeing
    if there needs to be more oversight of certain credit unions
    whose profitability is overly reliant on overdraft fees?
        Ms. Otsuka. Yes. Thank you for the question, Senator. I
    think consumer protection is absolutely important, and making
    sure financial services are affordable is critical. And so if
    confirmed, yes, I am committed to looking more into this issue,
    and following up with you and your office.
        Senator Menendez. Thank you. Overdraft fees are a major
    reason why so many Americans are still hesitant to enter the
    formal financial system, and I hope the NCUA will be closely
    monitoring this issue and ensure more is done.
        Two years ago, the SEC's Asset Management Advisory
    Committee unanimously submitted four recommendations for
    actions the SEC could take to improve diversity in the asset
    management industry. Since your confirmation when you said that
    you support holding a vote on these recommendations, the SEC
    has adopted two of the recommendations in the form of staff
    guidance, but has not taken action on the other two.
        Mr. Uyeda, can you commit to advocating for a vote on the
    other two recommendations, particularly the requirement for
    enhanced disclosures by investment companies and advisors
    regarding diversity within their workforces and leadership?
        Mr. Uyeda. Senator Menendez, yes, I commit to having in
    consideration of those two remaining issues. It's statutory
    required. The agenda, though, is set by Chair Gensler, to
    decide what goes on for consideration by the Commission.
        But as someone in my staff's role at the SEC work very
    closely with the Asset Management Advisory Committee, I do take
    their recommendations very seriously.
        Senator Menendez. I appreciate that the chairman ultimately
    will set the agenda, but he very often will turn to his fellow
    commissioners for votes on a variety of things. And if his
    fellow commissioners are advocating for a vote, at least on
    these issues, I think we may see the light of it. So I hope
    you'll be an active participant in urging a vote.
        These are noncontroversial recommendations that I think the
    commission should have acted on a long time ago. I've raised
    this issue with Chair Gensler repeatedly. I intend to keep
    raising it with nominees to the SEC until we see action taken.
    So I look forward to seeing your effort in that regard.
        Congressman Bachus, good to see you. In previous years, Ex-
    Im's competitiveness report has included information about the
    percentage of Ex-Im's direct small business support that went
    to minority and women-owned businesses. However, this
    information was not included in the most recent report. When
    Congress reauthorized the Ex-Im Bank in 2019, we specifically
    included language to encourage the participation of minority
    and women-owned businesses in international commerce to make
    the bank more accessible to these businesses. It's important
    that Ex-Im continue to report to Congress on how well it's
    accomplishing that part of its mission.
        So, if confirmed, will you commit to ensure Ex-Im's future
    competitiveness reports includes robust data regarding the bank
    support for minority and women-owned businesses?
        Mr. Bachus. Yes, I will. And I'll also go a step further
    and find out why that information was not in the last report.
        Senator Menendez. I appreciate that. Finally, Ms. Fain, the
    FDIC's latest OMWI report shows that Hispanic representation,
    both in the overall workforce and in management, remains
    unacceptably low. Little signs of progress. Less than 5 percent
    of the FDIC's workforce is Hispanic or Latino, virtually
    unchanged from 2021. I've heard time and time again from Chair
    Gruenberg that and other FDIC's nominees that this is a
    priority. But actions speak louder than words.
        If confirmed, will you commit to conducting a review of
    FDA's policies and strategies regarding increasing Hispanic
    representation in the agency?
        Ms. Fain. Certainly, Senator, and thank you for the
    question. If confirmed, I'm certainly interested in
    understanding the implementation of FDIC's policies toward its
    consumers.
        Senator Menendez. I hope not only toward its consumers, but
    to its actually creating a diverse workforce that represents
    its consumers. Thank you, Mr. Chairman.
        Chair Brown. Thanks, Senator Menendez.
        Senator Britt from Alabama is recognized.
        Senator Britt. Thank you, Mr. Chairman. Thank you all for
    being here, and congratulations on your nominations. I
    particularly want to thank Congressman Bachus. Thank you so
    much for reaching out to my office. And also to you--how do I
    say your last name?
        Ms. Otsuka. Otsuka.
        Senator Britt. Otsuka. Oh, I am going to get that wrong,
    but I'm going----
        Ms. Otsuka. No, it was pretty good.
        Senator Britt. ----to try really hard. OK. Otsuka. The two
    of you reached out for courtesy meetings, and I can't tell you
    how much I appreciate that. Thank you. I'll start with you. So,
    as you know, credit unions play an integral part of our
    economy. I know in Alabama, we are so proud of our local credit
    unions and the role they play in economic development, and job
    creation, and allowing people to actually reach their American
    dream.
        When we look at it, you know, in fact, this has been all
    going on for years, and years, and years. Today is the 75th
    annual International Credit Union Day. So I am particularly
    pleased to be able to highlight this in the important role
    these institutions play in our banking ecosystem. We must
    continue to promote an environment that allows financial
    institutions to thrive and continue to best serve their
    customers and their members so hardworking families can
    continue to take their family's life to the next level, that
    they can achieve things that they maybe thought weren't
    possible, and we continue to keep that American dream alive.
        In order to accomplish this, it's imperative that the
    Senate confirm individuals who understand the nuances of the
    particular industry and are willing to do their due diligence
    before taking regulatory action. So, Federal regulators must
    fully consider the impacts of these actions that they take in
    Washington on all financial institutions and consumers and the
    states and communities across our great Nation.
        So, my question for you, as a staffer, and a former staffer
    myself, can you briefly describe what you believe are your
    experiences here on the Senate Banking Committee and otherwise
    that qualify you to regulate the credit union industry and the
    tools that you will use and take with you and that role if
    confirmed?
        Ms. Otsuka. Thank you for the question, Senator Britt. So I
    have spent most of my career in public service and have more
    than a decade in financial services law and policy. I've spent
    the last several years as a staffer for this Committee handling
    a wide range of financial services issues, but that also
    included credit union policy and oversight.
        You know, I've worked with many of my colleagues who are in
    this room today on bipartisan legislation to strengthen the
    credit union system, to protect credit union members and
    employees, and a number of other credit union-related issues.
    And I completely agree with you that credit unions play a very
    important role, particularly in local economies.
        And then prior to my service on the Committee, I spent 10
    years at the FDIC as a staff attorney. So I'm very familiar
    with the role that a regulator like the NCUA should play in
    supervising credit unions and financial institutions.
        Senator Britt. Excellent. So the NCUA Chairman, Todd
    Harper, has publicly announced consumer financial protection as
    a priority for the agency. This administration and various
    regulators, including the CFPB, have time and time again gone
    far outside their scope to dramatically alter the financial
    sector under the guise of what are consumer protection. Things
    like slashing fees and requiring unnecessary ESG-related
    information from financial institutions. These types of
    policies usually steer consumers away from their local and
    trusted credit unions or community banks, and make it harder
    for institutions to do business.
        My question is, can you commit to us today that, if
    confirmed, you will not use your position as a credit union
    regulator to support measures like these that far exceed the
    NCUA's mission?
        Ms. Otsuka. Thank you for the question, Senator. If
    confirmed, I will take the NCUA's mission very seriously.
        Senator Britt. Thank you.
        Ms. Otsuka. And I think one thing that I've learned,
    especially from my time working on this Committee, is that
    talking to stakeholders in the credit union system, and the
    broader financial system, is extremely important because you
    can understand what concerns and what issues are out there. And
    I think as a regulator, you want to have an open line of
    communication and provide transparency. Because ultimately, I
    think regulators and financial institutions share the same goal
    of making sure that people have access to financial services.
        Senator Britt. Absolutely. And last question. Chair Harper
    also explicitly vocalized his intent for the NCUA to be more
    active in the climate space. What's your perspective on the
    appropriate role of the NCUA as it relates to climate-related
    financial risk?
        Ms. Otsuka. Senator, so I think regulators are required to
    make sure that credit unions manage risks. And many credit
    unions already understand the types of risks that they're
    expected to manage. They do that every day in their normal
    business.
        And so I think that's the appropriate role of a regulator,
    you know, as long as the institutions are following the law,
    and mitigating and managing risks appropriately, I think, you
    know, that's how a regulator can ensure that financial
    institutions are safe and sound.
        Senator Britt. Well, I appreciate your time, and the
    acknowledgement that our local credit unions and community
    banks are the economic engines for our small communities. Thank
    you.
        Chair Brown. Thank you, Senator Britt.
        Senator Cortez Masto of Nevada is recognized.
        Senator Cortez Masto. Thank you, Mr. Chairman. I do have to
    agree with my colleague from Alabama. I'm a big supporter of
    credit unions. It was the first account I opened as a very,
    very young girl. My father took me there to open my first
    account.
        Let me, first of all, congratulate all of the nominees and
    all of the family members who are there listening to all these,
    hopefully, intelligent questions coming the way toward your
    family. It's an honor always to be a part of these hearings and
    recognize so many that are willing to serve at a Federal level.
    So, thank you.
        Ms. Fain, let me start with you. Earlier this year--we've
    talked a little bit about this--when Silicon Valley Bank and
    Signature Bank failed, the FDIC used the Deposit Insurance Fund
    to repay deposits that exceeded its $250,000 limit. The FDIC
    also used the DIF to help absorb some of the losses of the
    failed First Republic Bank to help facilitate its sale to
    JPMorgan Chase.
        What lessons can the OIG take from these three bank
    failures, and is there potential for reform of internal
    processes to strengthen the FDIC to prevent such large bank
    failures?
        Ms. Fain. Thank you, Senator, for the question. Certainly,
    I'm familiar with the bank failings as a private citizen. I do
    not have access to some of the internal deliberations and
    interactions within the agency itself and the IG itself.
        But I am aware that the Office of Inspector General is
    currently completing two material loss reviews that are
    statutorily required. And I am very keen once those are issued
    to understand what, if there are any findings, those
    recommendations are, and how those reports would inform the
    oversight work of the Inspector General's Office. And
    certainly, anything else with regards to the agency.
        Senator Cortez Masto. Thank you. And I realize you're not
    there yet, based on the information you do have of the IG's
    office, is there concern that it's underfunded or understaffed?
        Ms. Fain. That's something that I would need to assess, if
    confirmed, but I certainly have looked at their budgets and
    their asks.
        Senator Cortez Masto. Well, please don't hesitate to come
    back. Not that we're going to give you what you need,
    unfortunately. But I do want to hear, and there is a fight for
    this independence. I think it is so important, and part of that
    is making sure you're adequately funded and resourced. So,
    thank you.
        Ms. Fain. Thank you.
        Senator Cortez Masto. So Ms. Slacik and Mr. Brodsky, you've
    been quiet on the other end, so I'm going to direct my
    questions to you. I only have 5 minutes. So similar to FDIC
    deposit insurance, the Securities Investor Protection
    Corporation ensures brokerage accounts up to $500,000 per
    customer in the event the brokerage fails. And also similar to
    the FDIC, the SIPC, and the SEC's Office of Investor Education
    and Advocacy, they recently published a bulletin to help
    educate investors about SIPC protection for brokerage accounts.
    I'm curious for both of you, do you believe that the SIPC's
    brokerage insurance adequately is understood by the average
    investor, or is there more that should be done? And Ms. Slacik,
    I'll start with you.
        Ms. Slacik. I think this past year, particularly with the
    bank failures, a lot of attention has been put on, ``Well, what
    about my brokerage account?'' I think a lot of people do
    understand. They see at the bottom of their statements what the
    SIPC insurance does.
        But I don't think we've done a good enough job. I think we
    can go out and make sure people understand what we do cover and
    what we do not cover. I don't think there's as good of an
    understanding of that as there could be. And it certainly is
    our intention, both the board, and the staff, and management
    that we need to do more in that regard--what we do cover and
    what we don't.
        Senator Cortez Masto. And also add to this, the crypto
    investor. I mean, is there more that we should be educating
    that crypto investor that they're not covered?
        Ms. Slacik. Yes.
        Senator Cortez Masto. OK. Thank you.
        Ms. Slacik. I think that's a very good question. It's an
    important question. And until there's a better understanding of
    that in that market, they need to understand that it's not
    covered.
        Senator Cortez Masto. Yeah. Mr. Brodsky.
        Mr. Brodsky. Yes. Thank you for the question. We are
    currently engaged in a joint effort with the SEC to educate
    investors. You can never do enough, but that's necessary,
    particularly with regard to young investors who are using the
    brokers. I don't think they have any idea what, what the
    protections are.
        And the other thing is that we joined recently with IOSCO,
    which is the International Organization of Securities
    Regulators. They recently had World Investor Week to raise
    awareness of that. So I'd say we're doing it, but we have to do
    more.
        Senator Cortez Masto. Thank you.
        Thank you to all of the nominees for your willingness to
    serve. Thank you, Mr. Chairman
        Chair Brown. Thank you, Senator Cortez Masto.
        Senator Van Hollen from Maryland is recognized.
        Senator Van Hollen. Thank you Mr. Chairman, and
    congratulations to all of you on your nominations. As
    Congressman Bachus knows, we were doing a lot of running around
    and trying to do many things at once. So good to have the
    chance to get by.
        And if I could start with you, Spencer, if I may, on Ex-Im,
    you know, one of the big challenges we've got is making sure
    that we have a unified strategy when it comes to providing
    exports for American made products. Ex-Im is a big piece of
    that. But we also have other instruments in the Government,
    including the DFC, the Development Finance Corporation and
    others. And I'm thinking about some of the big challenges we
    had ahead. We had a meeting yesterday convened by Senator
    Warner and others to focus on critical minerals, for example.
        Could you just speak to the role that Ex-Im Bank can play
    in that area, because it's an area where the United States is
    way behind both in terms of access to mining critical minerals
    for the batteries that will power electric vehicles, that are
    powering electric vehicles, and the processing of those
    critical minerals?
        So could you just talk, number one, about Ex-Im's role in
    that, but also the extent to which, in your experience, Ex-Im
    is actually working with these other agencies within U.S.
    Government to meet critical national needs?
        Mr. Bachus. Lithium, one of our critical minerals is--I'm
    sorry, did I turn--is it on now?
        Senator Van Hollen. It is.
        Mr. Bachus. OK. As you know, lithium is one of the critical
    minerals, and it's absolutely essential in our electric
    vehicles. And really, our domestic supply is inadequate. One of
    our Make More in America projects that was approved just
    recently was to supply Aquatech with laboratory equipment and
    testing equipment to test the content of lithium because we
    didn't have that capacity. And it's a small business. It also
    is a minority-owned business, you know, which is one of our
    charges.
        But it is one of the 10 areas that we've identified. I will
    say that some people take that to mean we don't operate in
    other areas. We've been operating in other areas. We have a
    staff of about 330 people. We should be staffed at about 500.
    We have 12 regional offices. We only have 8 regional directors,
    only regional 8 staff people in our offices. At one time we had
    24. As I said earlier, our net-zero appropriation is a real
    challenge.
        One thing we've done is to try to get out there through our
    website. I discovered shortly after being at Ex-Im when I was
    at a small business, and they told me that they had gotten on
    our website and they couldn't figure out how to access what we
    were doing. And we've now updated that, simplified it, and
    we've linked it with the SBA, Department of Agriculture,
    Commerce Department, other programs. But I think the best way
    to figure out how to do a better job is to get out and visit
    these companies.
        Senator Van Hollen. I appreciate that. Thank you. And I may
    circle back with you on the question of making sure we have
    coordination within the U.S. Government because so many of
    these, you know, authorities, like Ex-Im's authority, really
    work better when you have a multiplier effect of working with
    others like the DFC.
        But if I could, Mr. Commissioner Uyeda, thank you for all
    the work that you've been doing. And thank you, and the SEC for
    your help with Senator Kennedy and myself on our bipartisan
    legislation, the Holding Foreign Companies Accountable Act,
    which passed into law, making sure that we protect American
    investors, especially smaller investors by ensuring that in
    this case, China is complying with the same auditing rules as
    any other companies that trade on the U.S. exchanges.
        We've also introduced the Holding Foreign Insiders
    Accountable Act to make sure that the insider trading rules,
    the rules against insider trading that help protect American
    investors that apply to American companies here at home also
    apply elsewhere. So I wanted to thank you for that.
        Are there other areas that we should be doing to better
    protect American investors when it comes to ensuring that
    worldwide people are complying with the transparency rules that
    help protect our exchanges and American investors?
        Mr. Uyeda. Well, first, when I was on detail at the Senate
    Banking in the 117th, I was really pleased to help work on a
    predecessor bill, and was quite happy when Congress passed the
    Holding Foreign Companies Accountable Act. So I'm really
    pleased that that is in place. The PCAOB has done what they
    need to do. And from the reports I've been receiving, I'm at
    least cautiously optimistic that it will do what it was
    intended to accomplish.
        With respect to other foreign private issuers, we have a
    fairly simple rule. If you want to come and list in the United
    States, raise capital in the United States, you need to provide
    the disclosures required in our laws and our rules. We have
    between our division of corporation finance and our division of
    enforcement effective tools to ensure that the appropriate
    disclosure is being made by those entities.
        Senator Van Hollen. Thank you. We look forward to working
    with you to make sure we plug all the loopholes. Thank you, Mr.
    Chairman.
        Chair Brown. Thanks, Senator Van Hollen.
        Senator Fetterman from Pennsylvania is recognized.
        Senator Fetterman. Thank you, Mr. Chairman. So Mr. Uyeda,
    I'm going to be asking a question that it's not meant to be
    combative or take anything like that. Honestly, it's an honest,
    honest question, and apologize I if it's ever been touched on
    before. But I really just want to ask a very basic kind of a
    question, and that is; should crypto exist? Is that something
    that should endure? And where does its value come from? You
    know, where is it derived?
        Mr. Uyeda. I can tell you, you know, my perspective as a
    regulator. You know, our securities laws that we're charged
    with enforcing are neutral on the merits of a particular
    investment. The key question is whether they're providing all
    the disclosures. There has been, I know, a lot of back and
    forth with different views expressed as to whether or not
    crypto falls within our jurisdiction, or whether it falls
    within the jurisdiction of the CFTC.
        There is a fair amount of activity in this. Events of last
    year have shown then for those who purchase crypto there are
    various risks involved in that. And, you know, I think it is
    really important the efforts that are going on in Congress to
    provide some more clarity specifically as to which regulatory
    agency's jurisdiction it belongs to.
        Senator Fetterman. So I guess drilling down on that, it's
    like how can you really--like, how does it exist? You know, is
    it because really when you look down, it's really just a
    mathematical kind of an idea. And, you know, I mean, there's a
    lot of mathematical ideas and theories that hasn't been
    monetized. You know, is that strange or is this something--the
    next step, the evolution of money, or is it really just kind of
    like a fad?
        Mr. Uyeda. Well, I'd love to say that I have an in-depth
    technical knowledge of that, but I don't. I know one of the
    things with the capital markets is that we allow innovation.
    Should that be a security and should they be raising money, we
    require the disclosures. When one looks--at least, when I look
    back, I became a corporate lawyer in the 90s when there were a
    lot of, ``How do we monetize the internet? How does that
    occur?''
        And so sometimes you don't know. Failure is actually a
    fairly good teacher for investors. As a regulator, I get
    concerned about fraud. And, you know, this is one where it's
    complicated by the jurisdictional issues as to whether or not
    it is a security or it is not.
        Senator Fetterman. Yeah. Drilling down on what you
    mentioned. Back in the late 90s, I remember it was go, go, go.
    And if you just slap a .com after anything, you could raise
    millions, if not billions on that. And many of them failed, but
    there really was value behind the idea of something beyond
    .com.
        And I still can't figure out what that is, you know, for
    crypto. And I think it was Warren Buffet who said that he
    wouldn't pay a quarter for every, you know, crypto-type, if he
    could. And he's, you know, much smarter and definitely richer
    than I am. And that's, kind of, a profound statement to make,
    and it's still having the conversation.
        And I really don't fully understand in the way, and
    should--even if crypto does exist, could it be just one
    standard like Bitcoin or anything, or can even more than one
    even survive is just a question. And to me it's just like an
    open kind of conversation. I think that's really important part
    of the American and world economy; especially given that it may
    have been involved in the Israeli attack. So, thank you.
        And Mr. Bachus, as well, I had the pleasure of meeting with
    you in my office yesterday. And I was very pleased with what
    you said, and fully have expected and absolutely will announce
    today that I plan to vote for you and support you.
        And I understand that you are the choice of the Republican
    colleagues, and I absolutely would support that. And I am not
    the kind of Senator that does not, kind of, find an obscure
    tweet or find out, you know, that you had, you know, a really
    bad taste in fashion or something to find out a reason not to
    vote for you.
        Because I believe that I may not agree with anything that's
    ever you said or ever that you've done, but I support the right
    of the Republicans to have their choice. And I absolutely
    believe in the Export Bank as well, and I look forward to
    voting for you. And thank you for spending time with me in my
    office yesterday.
        Mr. Bachus. Thank you.
        Senator Fetterman. Mr. Chairman.
        Mr. Bachus. I think the world needs bipartisanship and
    respect for each other. And you certainly showed that to me
    yesterday, and I appreciate it.
        Chair Brown. Thank you, Senator Fetterman.
        Thanks to the six of you for being here today and providing
    testimony. I hope we can work together as a Committee to move
    forward quickly. I appreciate the Congressman's comments about
    bipartisanship in response to Senator Fetterman working
    together on confirmations of today's nominees.
        For Senators who wish to submit questions for the record,
    those questions are due at 5 p.m. Monday, October 23rd. All
    Members of the Committee, whether asking questions today or
    not, are notified of that date. To the nominees, we'd like you
    to have your responses back to us by Monday, October 30th, by 5
    p.m. You'll have 1 week to get them. Thank you for your
    testimony today. With that, the hearing is adjourned. Thank
    you.
        [Whereupon, at 11:36 a.m., the hearing was adjourned.]
        [Prepared statements, biographical sketches of nominees,
    responses to written questions, and additional material
    supplied for the record follow:]
                   PREPARED STATEMENT OF CHAIR SHERROD BROWN
        Good morning, everyone.
        First, I'd like to thank Senator Sinema for her years of service on
    our Committee, and welcome Senator Butler, who will be joining the
    Senate Banking and Housing Committee. We're excited to work with her.
        The Committee meets today to consider six nominations--four of whom
    are renominations:
        Ms. Tanya Otsuka to be a Member of the National Credit Union
    Administration Board;
        The Honorable Mark Uyeda renominated to be a Member of the
    Securities and Exchange Commission;
        The Honorable Spencer Bachus renominated to be a Member of the
    Board of Directors of the Export-Import Bank;
        Ms. Jennifer Fain to be Inspector General of the Federal Insurance
    Deposit Corporation;
        The Honorable Claudia Slacik renominated to be a Director of the
    Securities Investor Protection Corporation; and
        The Honorable William Brodsky renominated to be a Director of the
    Securities Investor Protection Corporation.
        We thank the nominees for appearing here today and for their
    willingness to serve our country in these important positions.
        If confirmed, these nominees will play an important role in the
    success and stability of our financial system.
        The President has nominated Tanya Otsuka to be a Member of the
    National Credit Union Administration Board. If confirmed, she would be
    the first Asian American to serve on the NCUA Board in the agency's 53-
    year history.
        Ms. Otsuka is exceptionally well-qualified to serve on the NCUA
    Board.
        Ms. Otsuka has served as a key member of my Banking and Housing
    Committee staff--crafting legislation and providing strategic advice to
    me on banking issues and credit union policy and oversight. A career
    public servant, she first joined the Committee in 2019 as a Legislative
    Fellow detailed from the FDIC, and became a permanent member of my team
    in 2020--where she currently serves as senior counsel.
        Within days of her joining the Committee, the coronavirus pandemic
    endangered our financial system.
        Ms. Otsuka immediately got to work with then-Chair Crapo's staff on
    critical provisions of the bipartisan CARES Act, so that our credit
    union system would remain strong and stable.
        When our financial system was tested earlier in the year by the
    largest bank failures since 2008, Ms. Otsuka worked to keep committee
    offices informed about the rapidly evolving situation, and was in
    constant contact with regulators and other stakeholders.
        And she has played a pivotal role in legislation advanced by the
    Committee this year, including our RECOUP Act to hold failed big bank
    executives accountable, which received strong, bipartisan support by
    this Committee.
        Ms. Otsuka has garnered strong support from both credit unions and
    banks, because they recognize that she is hardworking, intelligent,
    open minded, and focused on ensuring that the financial system works
    for all Americans.
        River City Federal Credit Union out of San Antonio wrote to the
    Committee, ``[w]e appreciate Tanya's work to raise the visibility of
    credit unions, remove barriers to growth, and support credit unions in
    deepening their impact in the communities they serve, all of which goes
    towards increasing financial stability for credit union members. Her
    thoughtful approach to this work and strong focus on the financial
    well-being of credit union members will make her an asset to the NCUA
    Board and an effective leader in the credit union system.''
        Michael Adelman, President and CEO of the Ohio Bankers League,
    wrote ``[w]hile we may have differed on specific policy decisions, Ms.
    Otsuka always did her homework and gave OBL and other interested
    parties a fair shake. She welcomes a diversity of views.''
        Mr. Adelman went on to say, ``I am grateful for the genuine
    opportunity she always gave the OBL and our member institutions to be
    heard.''
        Ms. Otsuka is the type of regulator we ought to have in these
    critical economic positions.
        Congratulations, Ms. Otsuka.
        The President has renominated Mark Uyeda to a full term on the
    Securities and Exchange Commission. Mr. Uyeda has served as a board
    member of the Commission since last year.
        Prior to his confirmation to the Commission, Mr. Uyeda was detailed
    to then-Ranking Member Toomey's staff from the SEC.
        Mr. Uyeda first joined the SEC in 2006 where he served in several
    roles, including counsel for Commissioners Paul Atkins and Michael
    Piwowar as well as Senior Adviser to Chair Jay Clayton.
        Earlier in his career, Mr. Uyeda worked in private law practice, as
    well as for the California Department of Corporations.
        Welcome back, Mr. Uyeda.
        The President has renominated Congressman Spencer Bachus to the Ex-
    Im Board. Congressman Bachus first joined Ex-Im as a Board Member in
    2019. Along with Judith Pryor and then-Chair Kimberly Reed, he played
    an important role in helping reopen Ex-Im after a 4-year partial
    shutdown.
        From 1993 to 2015, Congressman Bachus represented Alabama's sixth
    district--serving on the House Financial Services Committee where he
    was both Chairman and Ranking Member.
        Good to see you again, Congressman.
        The President has nominated Jennifer Fain to be Inspector General
    of the Federal Deposit Insurance Corporation--a role that carries great
    importance given the recent bank failures. She brings years of audit,
    inspections, evaluations, and investigations experience, including in
    the areas of financial services and consumer protection.
        Ms. Fain possesses extensive experience in Federal Government
    oversight--serving in several agencies' Inspector General offices. Most
    recently, she served in senior leadership roles at the Ex-Im Bank's
    Office of Inspector General--notably as Deputy Assistant IG for
    Inspections and Evaluations, Assistant IG for Audits and Evaluations,
    Deputy IG, and Acting IG.
        Prior to joining Ex-Im, Ms. Fain served in IG offices at HUD, FHFA,
    and the U.S. Election Assistance Commission.
        Glad to have you here, Ms. Fain.
        Today, we also consider the nominations of two qualified nominees
    to the Board of Directors of the Securities Investor Protection
    Corporation--Claudia Slacik and William Brodsky. Both nominees have
    significant financial services experience.
        Ms. Slacik possesses more than 30 years of financial services
    experience--both in the public and private sectors. The Senate
    confirmed her by voice vote to the SIPC board last year where she
    currently serves as Chair.
        Prior to serving on SIPC, Ms. Slacik was the Chief Banking Officer
    at the Export-Import Bank. Before entering public service, she served
    in senior level roles at several large banks.
        Glad you are here with us today, Ms. Slacik.
        Mr. Brodsky possesses five decades of securities and investment
    business experience. The Senate confirmed him to the SIPC board last
    year by voice vote.
        During his career, Mr. Brodsky has worked in senior level roles at
    several major exchanges, including the American Stock Exchange, Chicago
    Mercantile Exchange, and the Chicago Board Options Exchange--where he
    served as Chairman and Chief Executive Officer.
        Welcome, Mr. Brodsky.
        Thanks again to the nominees for appearing here today.
                                     ______

                    PREPARED STATEMENT OF SENATOR TIM SCOTT
        Presidential nominees serve an important role in carrying out and
    executing the laws of the United States.
        As Members of this Chamber, we have a necessary, constitutional
    role in providing advice and consent on presidential nominees.
        The American people don't get a vote on these nominees--but they do
    expect us to scrutinize and evaluate them--a duty we must take
    seriously.
        As I have said at past nominations hearings, I believe all nominees
    to senior positions in the Federal Government must be well qualified
    for the positions for which they have been nominated. They should,
    inspire confidence, have a strong respect for the rule of law, and
    support policies that promote opportunity and the American Dream.
        They must focus on policies that give Americans in every corner of
    the United States a chance to improve their economic standing and build
    success for the future of their families.
        Several of the nominees before us today appear to meet this
    standard.
        First, we have Mr. Uyeda, who is currently serving as a member of
    the Securities and Exchange Commission (SEC) and has been renominated
    for this position after being confirmed by the Senate by voice vote on
    June 16, 2022.
        Mr. Uyeda is a dedicated public servant and an independent voice on
    the Commission at a time when the agency has been going through an
    unprecedented overhaul of our U.S. capital markets.
        Indeed, the extraordinary volume and breadth of these rulemakings--
    many of which are complex and interconnected--is staggering and will
    unnecessarily increase the cost of companies going public. Moreover,
    the Commission, under Chair Gensler, is not stopping with public
    issuers. Chair Gensler's new disclosure requirements, particularly on
    climate-related risks, could result in a significant increase in
    compliance costs, not only on large issuers, but on private small
    businesses and family owned farms downstream in companies' supply
    chains. Similarly, Chair Gensler's rulemaking on private funds will
    limit access to capital and push diverse fund managers out of the
    market.
        I am confident that Mr. Uyeda, the first Asian Pacific American to
    serve as an SEC commissioner, will continue to adhere to the rule of
    law and strive to keep the SEC's focus on its three-part mission of
    protecting investors, maintaining fair and efficient markets, and
    facilitating capital formation.
        Second, we have Mr. Bachus a former Member of the House of
    Representatives, who I served with in the other chamber, and a former
    Chairman of the Financial Services Committee. He has been renominated
    to serve as a Board Member at the Export-Import (Ex-Im) Bank, where he
    has served since May of 2019.
        The Ex-Im Bank plays a critical role in helping American businesses
    obtain funding to compete globally on a level playing field.
        Special attention must be paid to Ex-Im as the Biden
    administration, with its all-of-Government approach to advance climate-
    related priorities, is seeking to steer the bank's focus away from
    businesses' competitive needs and towards environmental issues. This
    was apparent when Ex-Im announced that it would prioritize financing
    under its ``Make More in America Initiative'' to ``environmentally
    beneficial projects.''
        Additionally, as American industry must compete in a global market
    with foreign competitors, like China, that often receive extensive
    support from their own country's export credit programs, I am glad that
    a leader like Mr. Bachus has been renominated for a position on the
    Board of the Ex-Im Bank.
        Third, we have Ms. Fain, who has been nominated to be the Inspector
    General of the Federal Deposit Insurance Corporation (FDIC).
        Ms. Fain has served for over 22 years in the Inspector General
    community, including most recently as the Deputy Inspector General for
    Ex-Im. She also served as Acting Inspector General for Ex-Im for nearly
    3 years.
        If confirmed as the FDIC Inspector General, I hope that Ms. Fain
    will remain an independent watchdog at an agency that is still
    rehabbing its image from Operation Choke Point, President Obama and
    then-Vice President Biden attempted to use the FDIC to pressure banks
    into cutting off access to credit for industries that they disagreed
    with on a political basis under Chairman Gruenberg.
        And where more recently, again under Chairman Gruenberg, the Agency
    has issued sweeping regulations that do not appear to have undertaken
    appropriate cost benefit analysis and has joined political
    organizations such as the Network for Greening the Financial System,
    which do not reflect the Agency's scope or mission.
        As the Inspector General, you would have the important role of
    ensuring there is no waste, fraud, or abuse at an independent agency
    that is not subject to Congressional appropriations. I look forward to
    hearing from you today about the importance of applying the law,
    ensuring the safety and soundness of our financial system, and focusing
    on accountability by identifying actual imminent financial risks,
    rather than playing the role of a climate regulator.
        Similarly, if confirmed, you would be dealing with an agency that
    is blemished from recent events where its members, including Consumer
    Financial Protection Bureau (CFPB) Director Chopra, staged an
    unprecedented coup and forced out Chairman Jelena McWilliams, further
    damaging the FDIC's reputation and distracting from its mission.
        All of this is to say, Ms. Fain, I look forward to hearing from you
    on these topics, and if confirmed, you will have your work cut out for
    you.
        Next, we have Ms. Otsuka, who has been nominated to serve on the
    board of the National Credit Union Administration (NCUA).
        Ms. Otsuka is currently Senior Counsel for the majority staff of
    the Senate Banking Committee under Chairman Brown, where she has
    handled the Committee's work on banking and credit union issues since
    March 2020.
        NCUA is an independent Federal agency that supervises and insures
    deposits at federally insured.
        As with many other independent financial regulators, I am concerned
    that NCUA is focusing too much time prioritizing purported risks
    associated with climate change and not enough time on material,
    financial risks.
        Ms. Otsuka has a good working relationship with my staff, and I
    look forward to hearing her views on the risks facing financial
    institutions and how she would carry out her duties at the NCUA if
    confirmed.
        Finally, we have two nominees who have been renominated to the
    Securities Investor Protection Corporation (SIPC). Ms. Slacik, who is
    currently a member and Chair of SIPC and Mr. William Brodsky, who also
    is a member of SIPC.
        SIPC protects against the loss of securities held by customers at
    brokerage firms, and I am interested in hearing from these nominees
    regarding their plans and work to ensure the protection of American
    families investing for their retirement, their children, or to grow
    their businesses.
        Each of the nominees before us is tasked with an important role,
    and if confirmed, I hope that all six of these nominees will work every
    day to support the American people and maintain confidence in this
    great Nation.
                                     ______

                       PREPARED STATEMENT OF TANYA OTSUKA
           To Be a Member of the National Credit Union Administration
                                October 19, 2023
        Chairman Brown, Ranking Member Scott, and distinguished Members of
    the Committee. It is an honor to appear before you today. Thank you to
    President Biden for nominating me, and to Senator Brown for his
    support. I also want to thank the Senate Banking, Housing, and Urban
    Affairs Committee staff and member staffs for their well-wishes and,
    most importantly, for the work they do every day to serve the American
    people.
        With me today are my spouse of 10 years, Matt, our son, Adrian, and
    my sister Natalie. Also with me today are my parents, Cary and Sima
    Otsuka, who worked and sacrificed so that my sister and I would have
    everything we needed to succeed. They instilled in me a strong work
    ethic, sense of purpose, and respect for others. I would not be sitting
    here today without their love and support.
        I am honored and humbled to be nominated to serve on the Board of
    the National Credit Union Administration (NCUA). The NCUA's mission of
    ensuring a strong system of cooperative credit is one that resonates
    with me both personally and professionally.
        Growing up, I spent many summers with my paternal grandparents,
    listening to my grandmother tell me stories about her childhood. During
    World War II, she and her family were sent to an internment camp in
    Arkansas, forced to leave behind most of their possessions, including
    their family farm in California. For the rest of the war, my
    grandmother and her family were incarcerated in a prison-like compound,
    surrounded by barbed wire, because they were Americans of Japanese
    descent. At the same time, her brother fought overseas in the 442nd
    regiment of the United States Army. My grandfather and his family
    shared a similar fate, forcibly incarcerated in Arizona.
        My grandmother recounted how difficult it was after the war to make
    ends meet when she and her family had lost everything. Like my
    grandparents, many Japanese Americans faced the same struggle, and were
    often met with discrimination when they tried to deposit money or get a
    loan. Some took matters into their own hands, forming a credit union so
    that Japanese Americans could access financial services and help each
    other rebuild their lives. Today, that credit union is still active and
    insured by the NCUA. Experiences like this embody the cooperative
    spirit and exemplify the important role that credit unions play in our
    communities and economy. It is fitting that today is the 75th
    anniversary of International Credit Union Day, which celebrates the
    credit union movement's mission of financial inclusion.
        As a career public servant with over a decade of experience in
    financial services law and policy, I also have a deep appreciation for
    the role that independent agencies like the NCUA play in maintaining
    stability and public confidence in our financial system. I began my
    career as an attorney at the Federal Deposit Insurance Corporation
    (FDIC) in the wake of the 2008 financial crisis. During my 10 years at
    the FDIC, I gained experience in supervision, enforcement, resolution,
    assessments, and deposit insurance--all of which are also critical
    functions of the
        NCUA. I worked on the implementation of a number of FDIC policy
    actions, including many related to the Dodd-Frank Wall Street Reform
    and Consumer Protection Act and the Economic Growth, Regulatory Relief,
    and Consumer Protection Act (S. 2155).
        For the last several years, I have had the honor of serving on the
    staff of the Senate Banking, Housing, and Urban Affairs Committee,
    managing a wide range of financial services issues, including credit
    union policy and oversight. I am grateful to Senator Brown for this
    opportunity, and to Senator Crapo, who as the Chair of the Committee in
    2019, allowed me the opportunity to serve as a legislative fellow on
    detail from the FDIC. During my time on the Committee, I have had the
    privilege of working with his staff, Senator Toomey's staff, Ranking
    Member Scott's staff, and the staffs of the Members of this Committee.
    Together, we have worked on a number of bipartisan bills, including the
    CARES Act, which helped maintain the strength of the credit union
    system and allowed credit unions to support their members and their
    communities through the COVID-19 pandemic. I have seen the positive
    impact of Government working for the American people to maintain a safe
    and sound financial system--especially in times of uncertainty.
        I hope to continue my public service in support of the NCUA's
    critical mission and to ensure a fair, competitive, and resilient
    credit union system. If confirmed, I will remain committed to the
    millions of Americans who rely on the NCUA to safeguard their hard-
    earned money.
        Thank you, and I look forward to your questions.

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                        PREPARED STATEMENT OF MARK UYEDA
            To Be a Member of the Securities and Exchange Commission
                                October 19, 2023
        Chairman Brown, Ranking Member Scott, and Members of the Committee,
    thank you for the opportunity to appear before you today. Joining me in
    the hearing room is my wife Masae and watching remotely from California
    are other members of my family.
        In May 2022, I was privileged to appear before the Committee as the
    nominee to fill the 12 then-remaining months on the term of former
    Commissioner Elad Roisman. I am grateful for the Committee's support. I
    thank the President for his nomination to serve a full 5-year term as a
    member of the Securities and Exchange Commission (SEC). If confirmed, I
    would be able to continue contributing to an agency where I have served
    since 2006.
        As the first Asian Pacific American to serve as an SEC
    commissioner, I grew up in a world where many immigrant families ran
    small businesses. My first job was spending my teenage summers with my
    grandfather on his delivery route, where he drove a small truck
    bringing fresh produce from the Los Angeles wholesale market to
    restaurants and retailers, which were often small businesses
    themselves. For these small enterprises, capital was not always easily
    obtainable. Nevertheless, their owners had the opportunity to create
    and grow businesses that served customer needs, provided jobs, and
    generated economic activity. An environment amenable to creating those
    opportunities is what makes America a special place for hard-working
    and innovative entrepreneurs.
        The past 16 months as a commissioner have been the most fulfilling
    and humbling time of my public service. Since taking office, I have
    provided input and voted on the proposal or adoption of over forty SEC
    rulemakings that touch upon nearly all aspects of the capital markets
    and its participants.
        When evaluating the SEC's policy initiatives, I draw upon my
    diverse experiences of nearly 30 years, including as a corporate lawyer
    in private practice, as a regulator at the California Department of
    Corporations, as a member of the SEC staff, and as a detailee to the
    Senate Committee on Banking, Housing, and Urban Affairs. One lesson
    that I have learned from these experiences is the need to carefully
    assess the costs of regulatory activity, relative to its benefits. Many
    of these costs are passed on to workers and retirement savers who are
    investing for their futures.
        Given the SEC's critical role in overseeing our country's capital
    markets, promulgating regulations that are based on data, cost-
    effective, and aimed at addressing identified issues is of utmost
    importance. Consideration should be given to appropriately scaling our
    rules and implementation timelines, so as to not have a disparate
    impact on small businesses, including those owned by women and
    minorities. Investors from around the world are willing to place their
    capital at risk in our markets due, in part, to our regulatory
    structure being perceived as effective, efficient, and rationally
    applied. It is important that the SEC's rules continue to meet these
    expectations. Keeping our markets robust, liquid, and vibrant means
    both facilitating capital formation for companies and protecting
    investors. One cannot exist without the other.
        To close, I would like to express my gratitude and appreciation for
    the work of my fellow commissioners and the staff at the SEC. Their
    efforts to carry out the agency's mission of protecting investors,
    maintaining fair, orderly, and efficient markets, and facilitating
    capital formation continue to inspire me every day.
        Thank you and I look forward to your questions.

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                    PREPARED STATEMENT OF SPENCER BACHUS III
       To Be a Member of the Board of Directors of the Export-Import Bank
                                October 19, 2023
        Chairman Brown, Ranking Member Scott, and distinguished Members of
    the Committee, thank you for considering my nomination to be a member
    of the Board of Directors of the Export-Import Bank of the United
    States. I also appreciate the opportunities I've had to sit down with
    Senators and staff to discuss my nomination.
        I am honored to be nominated to serve another term on Ex-Im's Board
    of Directors, and if confirmed, would welcome the opportunity to
    continue supporting American workers and promoting U.S. business
    interests and exports in global markets.
        Unfortunately, my wife Linda is unable to join me today, and so I
    want to acknowledge her as my best friend and best advocate, who has
    been by my side through my entire career in public service. She has
    encouraged me every step of the way and makes me a better person.
        I appreciate the support many of you provided when I appeared
    before the Committee as a nominee in 2017. While much has changed in
    the world and at Ex-Im since I was first confirmed in 2019, much has
    also remained the same. I remain just as committed to Ex-Im, to its
    mission, and the role the agency plays in our economy as I was when
    first nominated. While serving on the House Financial Services
    Committee, I helped guide the passage of legislation reforming many of
    Ex-Im's operational requirements.
        In 2015, Ex-Im had a lapse in its authority and was without a
    quorum on its Board for nearly 4 years. While this sidelined Ex-Im, it
    did not sideline our competitors, including the People's Republic of
    China (PRC). Congress recognized this challenge in 2019 when it
    provided Ex-Im with a long-term reauthorization and directed the agency
    to establish the China and Transformational Exports Program.
        As a Member of the Board, I worked in a bipartisan fashion to help
    stand up this new Program and help make sure U.S. exports can compete
    and win across industries and regions--including significant
    transactions supporting the sale of construction equipment to Cameroon
    and solar energy goods to both Angola and Honduras.
        If confirmed, I would work with my colleagues to help make sure
    that we continue to combat the PRC's debt-trap diplomacy and support
    the export of high quality, trusted, and reliable U.S. goods and
    services around the world.
        During my previous term on the Board, I had the honor of traveling
    across our country to hear directly from businesses large and small--
    making everything from pet food to advanced aviation electronics--about
    the role Ex-Im can play in their ability to grow. What I heard from
    those workers is that, if given a chance to compete on a level playing
    field, they will compete with workers anywhere else in the world and
    they will produce the best product at the best price. I truly believe
    that and look forward to working with our partners in Congress to make
    sure this remains a reality.
        My previous tenure on the Ex-Im Board provided me with valuable
    experience in discharging the duties of a Board Member, including an
    understanding of the tools Ex-Im offers and the challenges facing
    American manufacturers. My experience and familiarity with the agency
    and its responsibility make me well-suited to serve in this role. Chair
    Lewis and my fellow Board Members enjoy a cooperative and collegial
    working relationship, and each brings different abilities to Ex-Im.
        If I am confirmed by the Senate, I pledge to work with you, as well
    as my fellow Board Members, to carry out and advance the mission of Ex-
    Im. I pledge to carry out the agency's charter and to review all
    applications for financing in accordance with statutory requirements.
    Mr. Chairman, Ranking Member Scott, and Members of the Committee, I
    truly appreciate your time today and consideration of my nomination. I
    look forward to answering any questions you may have.

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                      PREPARED STATEMENT OF JENNIFER FAIN
         To Be Inspector General, Federal Deposit Insurance Corporation
                                October 19, 2023
        Good morning Chairman Brown, Ranking Member Scott, and Members of
    the Committee. It is an honor to appear before you today as the
    President's nominee to serve as the Inspector General (IG) for the
    Federal Deposit Insurance Corporation (FDIC).
        I would first like to thank my family, especially my husband Kevin,
    who is here today, and my two brothers and their families. My gratitude
    must begin with my parents, who exemplified the opportunity of America
    and service to the country. My mother emigrated to the United States
    from South Korea and labored for years running her small restaurant.
    She is gone now but still with me in so many ways. My father enlisted
    in the Army as a young man, and those years of his military service
    inspired me to pursue a career in public service. For all of these
    family influences, I am profoundly grateful. I also thank my colleagues
    and mentors who have shared this professional journey with me. I would
    not be here without their support and encouragement over the years.
        I deeply appreciate the FDIC's long-standing, essential role in
    maintaining stability and public confidence in the U.S. financial
    system. The FDIC insures deposits; examines and supervises financial
    institutions for safety and soundness and consumer protection; makes
    large, complex financial institutions resolvable; and manages
    receiverships. Simply put: the FDIC helps protect individual Americans
    who place great trust in our Nation's banks.
        As an independent organization, the FDIC Office of Inspector
    General (OIG) plays a vital oversight role in ensuring the integrity
    and accountability of FDIC programs. The OIG conducts impactful audits,
    evaluations, and reviews. It also pursues criminal and administrative
    investigations relating to FDIC employees, contractors, and financial
    institutions. Importantly, an OIG's mission is not simply to identify
    issues of concern, but also to recommend corrective actions for their
    prevention. This proactive function is essential to improve and
    strengthen the effectiveness and integrity of the Agency. The OIG
    contributes to the successful accomplishment of the Agency's mission.
        I have valued this critical role based on serving for over 22 years
    in the Federal Inspector General community, most recently as Deputy IG
    for the Export-Import Bank of the United States (Ex-Im). Previously I
    acted in the role of IG for nearly 3 years, where I led teams of
    auditors, investigators, and analysts providing independent oversight
    of Ex-Im's programs and operations.
        Our office's accomplishments depended on the contributions of
    exceptional staff, and my main goal was to empower them to succeed. I
    carry these lessons in leadership with me today.
        My extensive oversight experience in financial services and
    consumer protection matters provides a deep foundation for me to serve
    as Inspector General for the FDIC. In prior management positions at Ex-
    Im OIG, I directed complex financial and performance audits and
    evaluations, and inspections of multimillion-dollar international
    transactions. I also held leadership positions in OIG offices at the
    Federal Housing Finance Agency (FHFA) and Department of Housing and
    Urban Development (HUD), which broadened my expertise in oversight for
    other agencies and disciplines, particularly for consumer protection.
        My appreciation for public service actually dates back to the
    beginning of my Federal career in 1994 when I was a student intern in
    the Accounting Division of the United States Mint.
        After graduating from college, I worked in HUD OIG's Denver field
    office, where for several years I conducted and supervised audits of
    HUD programs throughout the Rocky Mountain region. I met with
    individuals from all walks of life who were affected by these programs,
    including lenders and loan recipients. Those conversations and
    experiences made a lasting impression on me. They illuminated the
    direct impact that OIG oversight can have on the lives of Americans and
    the importance of OIG staff's individual contributions. This
    perspective will be essential for me to successfully lead the FDIC OIG.
        It would be an honor to serve as the Inspector General of the FDIC.
    I would be committed to delivering results in an independent and
    objective manner on the effectiveness and efficiency of FDIC programs
    and operations, which ultimately would benefit the American people.
    Thank you for considering my nomination. I look forward to working with
    you and your staffs if I am confirmed. I am happy to answer any
    questions you may have.

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                      PREPARED STATEMENT OF CLAUDIA SLACIK
       To Be a Director of the Securities Investor Protection Corporation
                                October 19, 2023
        Chairman Brown, Ranking Member Scott, and distinguished Members of
    this Committee, it is an honor to appear before you today. I am
    grateful to be nominated by the President for reappointment to a full
    term as a member of the Board of Directors of the Securities Investor
    Protection Corporation. If confirmed, I would be honored to continue to
    serve and do all I can in this capacity to protect investors and
    promote confidence in the U.S. securities markets.
        Before presenting my background, let me first introduce you to the
    members of my family who are here today. First, my spouse Susan Davis,
    who was born and raised in Louisiana and who has dedicated most of her
    professional life in service to impoverished people in the neediest
    parts of the world.
        And second, my brother, Kurt Slacik who was born in New York State
    and who is now a senior executive at a steel mill in Pennsylvania.
        Three of my five nieces, Sophia, Katherine, and Samantha are also
    with me.
        As for myself, I was born in upstate New York and grew up there as
    well as in New Jersey, Illinois, Connecticut, California, and
    Massachusetts. I also spent 5 years in Brussels, Belgium, where my
    father was a senior executive for a major U.S. company. I am a product
    of both public and parochial schools, and I received my undergraduate
    degree from Smith College and my MBA from New York University. My
    parents are both deceased, but are the children of people who
    immigrated to the United States from Eastern Europe in the early 1900s.
    I have four siblings who live in Florida, California, Nevada, and
    Pennsylvania.
        I spent 35 years in the U.S. financial services industry, mostly as
    a commercial lender to corporations and an international trade finance
    specialist. I also have experience in corporate restructurings, risk
    management, and general management. I have served on the boards of
    several companies, both public and private, with a specialty serving on
    their Audit Committees, in addition to service on several nonprofit
    boards. I also served as a fellow at Harvard University's Advanced
    Leadership Institute.
        Before beginning my service as SIPC Chair in 2022, my most recent
    professional position was as the Chief Banking Officer at the Export-
    Import Bank where my staff and I analyzed billions of dollars of
    transactions for small, medium, and large companies, which supported
    hundreds of thousands of jobs. My responsibilities included expanding
    the public's awareness of the Bank and overseeing the due diligence and
    underwriting of all transactions greater than $10 million before they
    were presented to the Bank's Board of Directors. My close working
    relationship with the Board also allowed me to gain a keen appreciation
    for the role of a Presidentially appointed Board and the
    responsibilities of such Board members.
        Since early 2022, I have served as Chair of the SIPC Board of
    Directors. During that time, SIPC has continued to increase its
    reserves and to adapt to new technologies and changes in the securities
    industry. In addition, SIPC has overseen the closing of the liquidation
    of Lehman Brothers, Inc., in which 110,000 securities customers
    achieved a 100 percent recovery of $105.7 billion of customer property
    at no cost to SIPC or the American taxpayer. Moreover, the Trustee in
    the SIPC-initiated liquidation of Bernard L. Madoff Investment
    Securities LLC continues his recovery efforts and has recouped and
    distributed more than $14 billion to investors--70 percent of funds
    deposited with the firm.
        I recognize the importance of SIPC to retail investors and the
    vital role it plays in the country's financial system. By ensuring that
    individual investors' securities accounts are protected when a broker-
    dealer fails, SIPC promotes investor confidence in the U.S. securities
    markets. In addition to protecting individual investors from financial
    hardship, SIPC helps insulate the markets from the disruption which can
    follow brokerage failures.
        If confirmed, I will support SIPC's mission to guard investors in
    the always evolving securities markets. I pledge to act vigorously as a
    principal advocate for robust investor protection. I further pledge to
    work diligently with all Members of this Committee to address your
    concerns and keep you informed of SIPC's activities.
        Mr. Chairman, Ranking Member Scott, and Members of the Committee,
    thank you for your time and consideration of my nomination. I look
    forward to answering any questions you may have.

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                     PREPARED STATEMENT OF WILLIAM BRODSKY
       To Be a Director of the Securities Investor Protection Corporation
                                October 19, 2023
        Good morning, Mr. Chairman, Ranking Member Scott, and distinguished
    Members of this Committee. My name is William J. Brodsky, and I am
    honored to appear before you today as one of President Biden's nominees
    to serve on the Board of Directors of the Securities Investor
    Protection Corporation.
        Before presenting my background, let me first introduce to you the
    members of my family who are here today. My wife, Joan Brodsky has been
    my wife and partner for over 50 years. My son, Michael Brodsky, and his
    wife, Aleta Margolis, are also accompanying me here today.
        I believe that I am well qualified to continue to serve on the SIPC
    Board based on my lifetime career in the investment business and
    specifically based on my experience in the securities industry. If
    confirmed, I look forward to working with this Committee to ensure that
    investors do not lose their hard-earned assets as a result of a
    brokerage firm failure.
        My career in the securities industry spans more than 50 years. I
    began my career on Wall Street serving in summer internships that
    included working on the floor of the New York Stock Exchange. I worked
    summer jobs at three securities brokerage firms while still in college.
    After graduating from law school, I worked in the law and compliance
    department of an international brokerage firm for 6 years learning all
    aspects of the securities business.
        In fact, I was on Wall Street when brokerage firms were failing,
    and many customers lost all their investments because SIPC had not yet
    been created. So, I know from personal experience the vital role SIPC
    plays in providing confidence for investors in having faith in the
    safety and soundness of the assets they entrust to their broker-dealer.
        I next joined the American Stock Exchange, first as a lawyer in its
    policy planning and Government relations department, and ultimately
    rising to Executive Vice President in charge of operations.
        In 1982, I moved to Chicago to become Executive Vice President and
    Chief Operating Officer of the Chicago Mercantile Exchange, now known
    as the CME Group. In 1985, I was named President and CEO of the CME and
    served in that role until 1997 when I moved across town to become
    Chairman and CEO the Chicago Board Options Exchange, now known as CBOE
    Global Markets. I served in that position until 2013, when I stepped
    down as CEO but remained as Chairman until retiring in 2017. I guided
    CBOE's demutualization leading it to become a public company and with
    its shares becoming part of the S&P 500 index of major U.S. companies.
    During my tenure at CBOE, I also served as Chairman of the World
    Federation of Exchanges, the global body of the world's largest
    exchanges.
        For the past 6 years, I have served as Chairman of Cedar Street
    Asset Management, an SEC registered investment advisor, founded by my
    son, Jonathan, that invests exclusively in non-U.S. stocks on behalf of
    individual and institutional investors. I also serve as Chairman of
    another SEC registered investment advisor, Options Solutions, founded
    by my son, Michael, that provides investment management services to
    investors. Last, I serve as an advisor to Madison Dearborn Capital
    Partners, a private equity firm, and OCA Ventures, a venture capital
    firm, both of which are based in Chicago.
        I have served as a Board Member and Trustee for several public,
    private, and nonprofit companies and organizations.
        Among these, I previously served as Chair of the investment
    committee of Northwestern Memorial Hospital where we oversaw its
    multibillion-dollar portfolio, and I currently serve on the Investment
    and Endowment Committee of my alma mater, Syracuse University. I have
    utilized this experience in my service on the SIPC Board for the past
    15 months as Chair of its Investment Committee. During this period, the
    SIPC Fund reserves have reached their largest balance, and my goal is
    to make sure that SIPC always has sufficient reserves and liquidity
    should an unexpected crisis arise.
        I affirm my deep commitment to investor education, customer
    protection, and to helping to maintain the credibility and importance
    that SIPC plays in the viability, integrity, and importance of our
    securities markets to the citizens of our country.
        I believe in SIPC's mission of protecting investors and, more
    broadly, of raising confidence in the U.S. securities markets. I have
    devoted my entire career to help further this country's capital
    markets, to improving financial literacy and investor education, and to
    ensuring the safety and soundness of our capital markets. If confirmed,
    I promise to work with the Members of this Committee in advancing these
    shared goals.
        Mr. Chairman, that concludes my remarks; thank you for your
    attention and consideration. I will be happy to answer any questions
    that you may have.
        Thank you.

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             RESPONSES TO WRITTEN QUESTIONS OF CHAIR BROWN
                           FROM TANYA OTSUKA

    Q.1. Where have you excelled in past positions in attracting,
    hiring, and promoting people of color in positions in your
    organization/s? Where might there be room for improvement?

    A.1. In my role as Senior Counsel on the staff of the U.S.
    Senate Banking, Housing, and Urban Affairs Committee, I have
    been involved in interviewing and recommending candidates to be
    hired as interns, fellows, and other staff, and have
    prioritized diversity, equity, and inclusion, consistent with
    Federal law. In my current and past positions, I have provided
    staff with opportunities to take on high-level projects and
    assignments to encourage their career growth and development
    and facilitated a welcoming and positive work environment for
    those on the team. There is always room for improvement when it
    comes to attracting and hiring diverse candidates and creating
    a workforce in the financial services sector that reflects the
    country's diversity. If confirmed, I hope to serve as an
    example for other women and people of color who want to pursue
    opportunities and grow their careers in the financial services
    policy arena.

    Q.2. What specific measures will you use to evaluate the
    success of NCUA in understanding and addressing the needs of
    Black, Indigenous, and people of color (BIPOC)? And, will you
    work with the other members of NCUA to keep Congress apprised,
    as appropriate, on the progress being made on these measures?

    A.2. If confirmed, I will work with the other NCUA Board
    members to keep Congress apprised, as appropriate, of the
    progress being made to understand and address the needs of
    Black, Indigenous, and people of color (BIPOC) communities. To
    evaluate the success of NCUA in understanding and addressing
    these needs, it is important to look at staff hiring,
    retention, and leadership at the NCUA, as well as what work the
    NCUA does to ensure that credit unions are serving these
    communities. I will look to agency resources, such as the
    Office of Minority and Women Inclusion (OMWI) at the NCUA, as
    well as engage with stakeholders, such as credit unions,
    minority depository institutions, community development
    financial institutions, civil rights groups, consumer groups,
    and credit union members to continue to make progress on this
    important goal.

    Q.3. What is your plan for creating an inclusive working
    environment for employees within your office?

    A.3. In my experience, encouraging teamwork and open
    communication promotes inclusivity. If confirmed, I plan to
    create an inclusive work environment for employees within my
    office by creating a respectful, welcoming, and positive
    atmosphere where individuals can share their ideas and work
    together to support the agency's mission.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR SCOTT
                           FROM TANYA OTSUKA

    Q.1. The Biden administration passed down a directive to the
    financial regulators to consider climate-related risk. The NCUA
    recently issued a request for information on climate-related
    financial risk, focusing on current and future climate and
    natural disaster risks to credit unions, related entities,
    their members, and the National Credit Union Share Insurance
    Fund (NCUSIF). Do you think it is appropriate or necessary for
    the NCUA to act to consider climate risk?

    A.1. The NCUA is responsible for making sure credit unions
    assess and manage risks appropriately, consistent with safety
    and soundness, consumer protection, and other applicable laws.

    Q.2. Given the unique nature of credit unions, do you believe
    that credit unions are able to appropriately account for these
    risks to their members?

    A.2. In my experience, many credit unions understand and manage
    the risks associated with serving their members and their
    communities, which may include risks from severe weather or
    natural disasters.

    Q.3. Do you believe that the NCUA should mandate that credit
    unions take into account factors like climate change in
    offering services?

    A.3. Credit unions are best positioned to make business
    decisions about what loans, investments, or services they make
    or provide to their members, as long as they are managing the
    risks appropriately and following applicable laws.

    Q.4. Credit unions continue to struggle with compliance
    challenges, due in large part to new regulations from the NCUA
    and other regulatory agencies. Several years ago, the NCUA
    established a Regulatory Reform Task Force to conduct a
    comprehensive review of the agency's rules intended to
    recommend clarification/elimination of unnecessary rules. After
    issuing two reports, the work of the Task Force has concluded.
    Would you support reconstituting this Task Force or a similar
    entity to thoroughly examine the NCUA's rules and regulations
    with an eye toward reducing regulatory burdens?

    A.4. It is important to ensure rules are clear and effective.
    If confirmed, I commit to reviewing the two reports and what
    additional clarification or other work is needed, if any.

    Q.5. Will you commit that, if confirmed, you will respond in a
    timely manner and fully comply with all information requests
    from me and other Members of the Committee? Please answer
    ``yes'' or ``no.''
        If no, please explain.

    A.5. Yes, if confirmed, I will work with you and other Members
    to fulfill information requests, consistent with law and
    precedent.
                                    ------

           RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNOCK
                           FROM TANYA OTSUKA

    Q.1. If confirmed, what would you do as a Board Member of the
    National Credit Union Administration to support credit unions,
    especially those that are minority development institutions and
    community development financial institutions, which serve as
    vital sources of basic financial services and capital in
    underserved areas?

    A.1. Minority depository institutions (MDIs) and community
    development financial institutions (CDFIs) are critical to
    providing basic financial services and capital in underserved
    areas. If confirmed, I commit to working with the other NCUA
    Board Members, agency staff, and stakeholders to better support
    MDI and CDFI credit unions and strengthen the agency's MDI
    program. I would also engage with credit unions and their
    members, as well as community groups and other local
    stakeholders, to understand the challenges they face and what
    resources they need to better serve their communities. If
    confirmed, I would work to make sure the NCUA does more to
    ensure that credit unions, particularly small credit unions,
    MDIs, and CDFIs, can stay competitive in our rapidly changing
    financial system.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR TILLIS
                           FROM TANYA OTSUKA

    Q.1. As you may know, the Department of Defense (DoD)'s
    Overseas Military Banking Program (OMBP) provides essential
    financial services to members of the armed forces stationed
    abroad and has been classified by the DoD as a priority program
    vital to national defense. Among the services it provides is
    deposit insurance to protect servicemembers' funds, which for
    the last 77 years has been provided by the Federal Deposit
    Insurance Corporation (FDIC). Earlier this year, DoD selected
    Navy Federal Credit Union (Navy Federal) to take over from the
    current OMBP operator, Bank of America. In doing so, the
    responsibility for Federal insurance shifted from the FDIC to
    the National Credit Union Administration (NCUA).
        To date, NCUA has unfortunately appeared unwilling to
    commit to extending Federal deposit insurance to accounts under
    the OMBP once the transition to Navy Federal occurs. It is also
    my understanding that their decision does not stem from a
    question of legal authority--NCUA has the relevant authority--
    but has been unwilling to exercise it.
        Will you commit to support the provision of share insurance
    in the Overseas Military Banking Program so that the deposits
    of the members of our armed forces are subject to the same
    protections they would receive if they were back home instead
    of abroad defending our country?

    A.1. Making sure our servicemembers have access to financial
    services is vital. My understanding is that federally insured
    credit unions operating on military bases overseas are insured,
    including the accounts of their military servicemembers. I
    understand Navy Federal Credit Union has recently been awarded
    the contract to operate ``Community Bank'' under the Overseas
    Military Banking Program, which is a Department of Defense
    (DoD) program. If confirmed, I look forward to understanding
    the details of the DoD program and Navy Federal's role as they
    take over the contract, and I commit to working with NCUA staff
    and fellow board members on this important issue. I am
    committed to ensuring that servicemembers have access to safe
    and affordable financial services, including while serving
    overseas.
                                    ------

           RESPONSES TO WRITTEN QUESTIONS OF SENATOR HAGERTY
                           FROM TANYA OTSUKA

    Q.1. Please explain your views on the NCUA's role in insuring
    deposits under the Overseas Military Banking Program (OMBP).
        If confirmed, will you commit to working with NCUA staff
    and fellow board members to ensure servicemember accounts
    overseas are properly supported?

    A.1. Making sure our servicemembers have access to financial
    services is vital. My understanding is that federally insured
    credit unions operating on military bases overseas are insured,
    including the accounts of their military servicemembers. I
    understand Navy Federal Credit Union has recently been awarded
    the contract to operate ``Community Bank'' under the Overseas
    Military Banking Program, which is a Department of Defense
    (DoD) program. If confirmed, I look forward to understanding
    the details of the DoD program and Navy Federal's role as they
    take over the contract and I commit to working with NCUA staff
    and fellow board members on this important issue. I am
    committed to ensuring that servicemembers have access to safe
    and affordable financial services, including while serving
    overseas.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR SCOTT
                            FROM MARK UYEDA

    Q.1. The goal of our Nation's capital markets system is not
    only to help everyday investors turn one dollar into two, but
    also to help businesses grow. Access to capital means access to
    funding that will help entrepreneurs, small businesses, and
    newly public companies expand their operations and create jobs.
    The SEC has a three-part mission: (1) to protect investors; (2)
    to maintain, fair, orderly, and efficient markets; and (3) to
    facilitate capital formation. In your view, what is the
    significance of facilitating capital formation for our Nation's
    capital markets system?

    A.1. Capital formation plays a key role in maintaining a robust
    and vibrant capital markets system. During my confirmation
    hearing, I described working with my grandfather on his produce
    delivery route in Los Angeles. From this experience, I saw
    firsthand the importance of raising capital for small
    businesses. Capital formation enables individuals to start
    businesses and creates pathways for those businesses to grow.
    These businesses contribute to the overall economy by producing
    goods and services and generating employment. Some of these
    businesses may eventually become public companies, traded on
    exchanges, and their stock may be part of everyday Americans'
    retirement savings.
        None of this is possible without a regulatory framework
    that facilitates capital formation. Therefore, the SEC's
    regulatory framework should provide companies and entrepreneurs
    with cost-effective means of raising capital that serve all
    types of firms, from the family-owned small business to the
    largest public companies. Regulations that are not cost-
    effective will limit capital formation, which in turn will harm
    our capital markets and impede wealth accumulation for
    Americans across the country.
        Facilitating capital formation is vital to the continued
    success of our markets and it must be weighed equally when
    balancing the values of our tripartite mission; none of the
    three parts can exist without the other two. To this end, the
    agency's regulatory agenda must consider policies that
    facilitate capital formation while protecting investors and
    maintaining fair, orderly, and efficient markets.

    Q.2. In what ways can the Commission improve access to capital
    for rural and non-metropolitan hubs, specifically for
    entrepreneurs that face challenges accessing capital like
    small, women-owned and minority businesses?

    A.2. The SEC should consider expanding the pool of people
    eligible to invest in the rural and non-metropolitan businesses
    that are seeking capital, including those that are smaller and/
    or owned by women and minorities. These businesses currently
    raise capital from those who qualify as ``accredited
    investors'' under current SEC's rules, which are based on their
    income or net worth. However, these qualification tests produce
    all-or-nothing results. Individuals can invest without limit if
    they exceed the income or net worth threshold but can invest
    nothing if they fall a dollar short. An alternative approach
    would be to consider allowing an individual to invest a certain
    percentage of his or her portfolio, regardless of income or net
    worth. This approach might expand access to capital and be
    helpful for businesses located in rural and non-metropolitan
    areas, where fewer people may qualify as accredited investors.
    However, this approach is by no means the only potential
    solution, and I am supportive of having roundtables and other
    public forums to consider alternatives.
        The SEC should seek to design rules governing capital
    raising by private companies that are not one-size-fits-all.
    The SEC's rules should provide companies of all sizes and
    capital demands with a means of raising capital that align with
    their business objectives and desired growth. The requirements
    for a company conducting an initial public offering should be
    different from the requirements for a private company seeking
    to raise capital. For private companies, the regulatory
    concerns for a small business seeking funding from friends and
    family may differ than a larger business seeking financing from
    venture capital funds. Imposing a prescriptive set of rules
    across all private companies that seek capital has the
    potential to disproportionally impact small, women-owned and
    minority businesses as well as those in rural and non-
    metropolitan hubs.

    Q.3. The notice and comment period is a fundamental part of the
    democratic process, allowing the public to have a voice in the
    rules and regulations that directly impact them. Are public
    comments and the information they convey important to you as
    Commissioner of the SEC? Please explain.

    A.3. The public comments received by the SEC are very important
    in the consideration of a rulemaking. This process is part of a
    key procedural requirement set forth in the Administrative
    Procedure Act (APA) referred to as ``notice and comment.''
    Under this requirement, an agency generally must publish a
    notice of proposed rulemaking in the Federal Register and give
    interested persons the opportunity to participate through the
    submission of comments.
        As an SEC Commissioner, I take the requirements of the APA
    very seriously. The information conveyed in public comments is
    crucial to evaluating the costs and benefits of a particular
    proposal. My analysis of proposed rules is informed by public
    comments, and my determinations with respect to final rules
    take into account whether the agency action reflects a robust
    consideration of the public comments.

    Q.4. How can the SEC do a better job at ensuring that retail
    investors have adequate time to consider and comment on a rule?

    A.4. The ``notice'' requirement set forth in the APA is deemed
    satisfied when an agency ``affords interested persons a
    reasonable and meaningful opportunity to participate in the
    rulemaking process.'' Executive orders issued by Presidents
    Clinton, Obama, and Biden all recognized the importance of a
    60-day comment period. A comment period of at least 60 days is
    also endorsed by the Administrative Conference of the United
    States for significant regulatory actions.
        To help retail investors have adequate time to consider and
    comment on a rule, the SEC should consider setting comment
    periods that consider: (1) the length and complexity of a rule,
    (2) any Federal and/or religious holidays that may fall within
    the comment period, and (3) the extent to which other proposed
    rules are simultaneously out for public comment. A
    consideration of these factors when setting comment periods
    will help enable the public to meaningfully participate in
    agency rulemaking. In addition, the SEC could consider more use
    of the investor testing provision set forth in Section 912 of
    the Dodd-Frank Act, which specifically encourages the SEC to
    gather information from and communicate with investors or other
    members of the public as part of the consideration of any new
    rule.

    Q.5. When evaluating or voting on a rule, how important is it
    for a rule to be scaled, or tailored, to ensure that it does
    not disproportionately impact small businesses?

    A.5. A new rule's impact on small businesses is one of the most
    important factors that I consider when evaluating the rule. For
    disclosure by public companies, the SEC can exempt ``smaller
    reporting companies'' from the disclosure requirement or scale
    the requirement. Doing so can help alleviate the potential
    disproportionate costs of a rule on smaller companies, which
    may have fewer resources to bear these costs. The SEC can also
    delay the compliance date of a new rule for smaller reporting
    companies. This approach allows these companies to benefit from
    the time and costs spent by larger companies during the initial
    compliance period. These costs may include fees paid to law
    firms and other outside advisors to prepare new policies or
    draft new disclosures. Smaller reporting companies may then be
    able to refer to these policies and disclosures when they begin
    to comply with the new rule. This can help avoid the need to
    incur significant outside advisor fees. When evaluating and
    voting on a new disclosure rule, I advocate for one or both of
    these avenues when appropriate. Additionally, the SEC should
    regularly evaluate the threshold for qualifying as a smaller
    reporting company, to ensure that ``small'' companies in the
    then-current economic environment are eligible to receive the
    aforementioned benefits.

    Q.6. Do you agree that, when rulemaking, the Commission should
    consider known economic impacts, including the cumulative
    impact of concurrent rulemakings?

    A.6. Yes, the SEC's rulemakings should consider all known
    economic impacts, including the cumulative impact of concurrent
    rulemakings. While individual regulations may not be costly,
    when aggregated they may impose significant compliance costs
    for firms and individuals.

    Q.7. Will you commit that, if confirmed to a new term, you will
    respond in a timely manner and fully comply with all
    information requests from me and other Members of the
    Committee? Please answer ``yes'' or ``no.''
        If no, please explain.

    A.7. Yes.
                                    ------

             RESPONSES TO WRITTEN QUESTIONS OF CHAIR BROWN
                        FROM SPENCER BACHUS III

    Q.1. Where have you excelled in past positions in attracting,
    hiring, and promoting people of color in positions in your
    organization/s? Where might there be room for improvement?

    A.1. As a Member of Congress and as an employer before my time
    in Congress, I have sought not to discriminate in employment or
    in any other matter. Specifically, I have hired without regard
    to color or gender. My former colleagues in both parties in the
    House of Representatives can attest to my lack of prejudice.

    Q.2. What specific measures will you use to evaluate the
    success of Ex-Im in understanding and addressing the needs of
    Black, Indigenous and people of color (BIPOC)? And, will you
    work with the other members of Ex-Im to keep Congress apprised,
    as appropriate, on the progress being made on these measures?

    A.2. The Bank has within it a Minority and Women Owned Business
    Group in accordance with its congressional mandate. The group
    is responsible for outreach and education of minority and/ or
    women owned businesses to increase the usage of Ex-Im products
    by underserved business communities. During my tenure I
    participated in many of their activities, including a visit to
    Charlotte, North Carolina, during my last month on the Board.
    While in Charlotte I participated in a forum of such
    businesses. Ex-Im reports on financing provided to minority and
    womenowned businesses every year in its annual report. If
    confirmed, I would be happy to work with Congress to make sure
    Members are getting information on the Bank's efforts.

    Q.3. What is your plan for creating an inclusive working
    environment for employees within your office?

    A.3. My father was a general contractor in Alabama in the 1960s
    and actively supported racial equity and inclusion in the face
    of personal sacrifice and vandalism. He was an inspiration and
    role model to me, and I have sought to emulate his example
    throughout my career, including while a Member of the U.S.
    House of Representatives where I worked with colleagues
    including former Rep. John Lewis to honor Alabama's civil
    rights struggles.
        As an independent member of Ex-Im's Board of Directors, I
    do not have a large staff within my office. In my experience,
    however, Ex-Im aggressively pursues and, in my opinion,
    maintains an inclusive work environment. I fully supported
    inclusion efforts while a member of the Board and would
    continue to do so if confirmed by the Senate.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR SCOTT
                        FROM SPENCER BACHUS III

    Q.1. How competitive is the Ex-Im Bank compared to China in
    terms of export financing?

    A.1. China offers more favorable terms and conditions and is
    not limited by the same financing restrictions and staffing
    shortages which restrain our ability to finance American
    manufacturing products. However, the quality and reliability of
    American produced goods and services is advantageous to our
    efforts to compete and win in global markets. Ex-Im's inability
    to be fully operational, first from authorization lapse and
    then from the lack of a board quorum resulted in loss of
    markets and market share. I discussed these challenges with
    your staff recently. Thank you for that opportunity.
        I am optimistic that several recent developments in
    Congress, at Ex-Im, in China, and in the world economy will,
    with patience, improve American manufacturing competitiveness.
    Ex-Im's China and Transformational Exports Program, included in
    the 2019 reauthorization, supports Ex-Im's ability to offer
    financing on competitive terms and lets American products
    compete on quality rather than just financing terms.

    Q.2. What improvements can be made to the ``China and
    Transformational Exports'' program to increase our
    competitiveness with China?

    A.2. The program itself has increased our competitiveness.
    However, staffing shortages and statutory language are, in my
    opinion, the origin of challenges in leveling the playing field
    for American exports.
        For example, there's a statutory prohibition on Ex-Im's
    default rate exceeding 2 percent. The agency must be a
    responsible steward of taxpayer resources, while also retaining
    the flexibility in our risk appetite to better compete with
    China. It can be hard to predict when the U.S. or world economy
    might face shocks, and flexibility or relief on Ex-Im's default
    rate cap could allow U.S. exports to better compete with China
    in the transformational export areas and invest in strategic
    critical minerals projects, and more.

    Q.3. To what extent does the Ex-Im Bank take climate change
    into account in its financing decisions?

    A.3. Ex-Im considers the environmental effects of transactions
    during the review and underwriting process. The agency is also
    prohibited from declining to approve transactions based solely
    on industry. Many transactions approved by Ex-Im are projects
    that would occur regardless of whether U.S. goods and services
    are used.

    Q.4. Should the Ex-Im Bank stop or curb its financing of oil
    and gas projects?

    A.4. No. The Charter prohibits discrimination based on
    industry. Oil and gas projects and fields are going to be
    developed if economically feasible. The question is are they
    going to be built with environmental protections. Ex-Im has
    rigorous safety and environmental standards and, in my opinion,
    the same is not necessarily true of some of our competitors.

    Q.5. Ex-Im Bank's ``Make More in America Initiative'' aims to
    catalyze domestic production in sectors critical to national
    security. Yet, the program's webpage also shows the Biden
    administration's political influence in declaring that
    ``environmentally beneficial projects'' are prioritized. I find
    this prioritization concerning, especially given the important
    nexus to National Security. How does progressive commentary on
    the environment and climate impact Ex-Im's ability promote
    development in sectors that are critical to national security?

    A.5. It is my understanding that Congress has required Ex-Im to
    encourage exports that have a beneficial effect on the
    environment. As an independent board member at an independent
    agency, I think it's important that I follow the charter which
    prohibits discrimination based solely on sector. I think it is
    important that the agency's actions are not based on a
    political bias, but on clear direction from Congress.
        My experience on the board is that we consider every
    project that has merit. That will be my approach if
    reappointed. We do take pride in development of solar and other
    so called alternative energy sources, and have approved several
    solar projects, but not to the exclusion of oil and gas
    projects. We will continue to review all applications based on
    merit and creditworthiness.

    Q.6. Will you commit that, if confirmed to a new term, you will
    respond in a timely manner and fully comply with all
    information requests from me and other Members of the
    Committee? Please answer ``yes'' or ``no.''

    A.6. Yes. In fact I would welcome such invitations.

    Q.7. If no, please explain.

    A.7. N/A.
                                    ------

           RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNOCK
                        FROM SPENCER BACHUS III

    Q.1. If confirmed, what actions would you take at Export-Import
    Bank of the United States (Ex-Im) to work with other Federal
    and international agencies to support the export of sustainable
    technology manufactured in Georgia and throughout the U.S. to
    developing Nations?

    A.1. I have enjoyed working with Ex-Im's Atlanta office and
    have visited with small, medium, and large businesses in
    Georgia. In addition to Ex-Im's longstanding programs, in 2022
    the Board approved a new domestic financing initiative known as
    ``Make More in America''. This initiative is designed to
    support export oriented domestic manufacturing projects in
    Georgia and around the country. This supports a whole-of-
    Government approach to revitalize American manufacturing and
    jobs.
        As Original sponsor of the Debt Relief Legislation in 2000
    I have a longstanding interest in improving the living
    standards of those living in countries that suffer from
    malnutrition, lack of potable water and electricity, and
    educational opportunities.
        Have served on the Board of Bread for the World in belief
    our country can indeed be a force for addressing nutritional,
    health, and educational challenges worldwide. In fact, I
    believe it is in both our economic and national security
    interests to do so.
        The agency has a specific mandate to invest in sub-Saharan
    Africa and have been doing so, for example we recently approved
    an historic $900-million dollar transaction funding
    Americanmade solar panels to the country of Angola and $74-
    million project for modular bridges in Cameroon.

    Q.2. Between 2014 and 2020, 76 percent of exporters supported
    by Ex-Im in Georgia were small businesses. Please explain to
    your commitment to small businesses and how you plan on
    potentially increasing Ex-Im's support for small businesses.

    A.2. I'm fully committed to supporting small businesses. In
    fact, most of our opportunities to increase the export of
    American manufacturing goods will be achieved by small
    businesses, many of them MWOB. Small businesses who export are
    faster growing and more profitable than those that don't export
    as 95 percent of the world's consumers are outside of the
    United States.
        Almost all of Ex-Im transactions benefit small businesses,
    in fact as an agency of less than 400 personnel, a full quarter
    are specifically dedicated to supporting our small business
    efforts.
        If reappointed to serve on the Board, I will continue to
    work with Congress to receive guidance about opportunities to
    use Ex-Im's tools to support small businesses. I would
    encourage you and all Members to invite me to your State to
    engage all businesses, especially small enterprises.
                                    ------

             RESPONSES TO WRITTEN QUESTIONS OF CHAIR BROWN
                           FROM JENNIFER FAIN

    Q.1. Where have you excelled in past positions in attracting,
    hiring, and promoting people of color in positions in your
    organization/s? Where might there be room for improvement?

    A.1. Increasing opportunities for people of color, and other
    underrepresented groups, has been part of my oversight career
    for over 22 years. As a junior auditor, I was selected to be a
    member of a group of minority and non-minority OIG employees
    established to openly discuss issues and identify ways to
    improve the diversity and inclusiveness of our work
    environment, including minority recruiting. The results of
    these discussions were used to inform OIG senior-executive
    decisions about the work environment.
        As a mid-level manager and senior executive, I focused on
    empowering my direct reports to build diverse teams and an
    inclusive work environment. For example, during my nearly 3
    years of acting in the role of an IG, I focused on restoring
    operations, which included back-filling much needed positions
    due to many manager and staff departures. The diversity of our
    office increased significantly with the hiring, including
    internal promotions, of individuals who identified themselves
    as persons of color. Further, the office hired its first female
    special agent for investigations during my tenure.
        Although we made great strides in attracting and hiring
    diverse candidates, there were still potential areas for
    attracting additional candidates with different backgrounds. In
    particular, the office could have expanded its outreach and
    recruitment efforts even further by focusing specifically on
    additional underrepresented groups, such as Indigenous and
    disabled individuals. If confirmed as IG, I look forward to
    working with FDIC OIG management to better understand how we
    can enhance recruitment and retention efforts of people of
    color, including underrepresented groups, and determine if
    there is additional room for improvement in other areas.
        The FDIC OIG's Diversity, Equity, Inclusion, and
    Accessibility Strategic Plan, published on the OIG's external
    website, contains a vision and corresponding goals specifically
    related to attracting, hiring, and promoting a diverse
    workforce. Among initiatives cited in the OIG's DEIA Plan are
    the following:

        Cultivate outreach efforts to establish
            relationships with Historically Black Colleges and
            Universities, Hispanic-Serving Institutions, and
            professional organizations that advance interests of
            underrepresented groups.

        Establish protocols for distribution of vacancy
            announcements to ensure prompt notice of hiring
            opportunities to professional organizations that
            advance interests of underrepresented groups.

        Develop and utilize dashboard/graphics on
            demographics/trends in DEIA representation for
            recruitment, hiring, and advancement.

        I will ensure continued attention is given to successfully
    carrying out these initiatives.

    Q.2. What specific measures will you use to evaluate the
    success of FDIC IG in understanding and addressing the needs of
    Black, Indigenous and people of color (BIPOC)? And, will you
    work with the agency to keep Congress apprised, as appropriate,
    on the progress being made on these measures?

    A.2. If confirmed as IG, I will work with FDIC OIG management
    to better understand the FDIC's approach in addressing any
    structural inequities within its workforce, particularly the
    needs of Black, Indigenous, and people of color. I have
    researched the FDIC's overall strategies for DEIA--as presented
    in the FDIC's Diversity, Equity, and Inclusion Strategic Plan--
    and the responsibilities of the FDIC's Office of Minority and
    Women Inclusion, which include `` . . . ensuring diversity in
    management, employment and business activities'' of the Agency.
    I will welcome the opportunity to learn more about the FDIC's
    implementation of this Plan and the Agency's efforts to achieve
    an enterprise-wide culture that embraces DEIA principles.
        By recognizing any important gaps, particularly in
    employment and social integration, and creating an enabling
    work environment, disparities can be identified. This
    understanding is crucial for addressing barriers faced by
    historically underrepresented groups and for promoting
    diversity, equity, inclusion, and accessibility within an
    Agency, including the OIG. I would also seek to understand the
    data that is being collected by the FDIC for measuring progress
    in this important area, with a view to identify ways in which
    OIG oversight work can be utilized constructively to inform and
    drive improvement at the Agency. In addition, I recognize these
    issues of inclusion are relevant for communities and
    individuals affected by FDIC programs.
        I believe it is well within the IG's authority to review
    the FDIC's advancements in this area and keep Congress
    appropriately apprised. I will work to create a proactive work
    plan to oversee the FDIC's programs and operations, keeping
    this and other important issues in mind, should I be confirmed.

    Q.3. What is your plan for creating an inclusive working
    environment for employees within your office?

    A.3. An inclusive work environment involves creating a place of
    work where the contributions, presence, and perspectives of all
    OIG employees, including contractors, are respected and equally
    valued. My aim is to lead by example and commit to open,
    honest, and respectful communications at all levels in an
    environment that welcomes diversity of opinions and
    constructive conflict of ideas. Diverse perspectives,
    backgrounds, and experiences not only improve OIG decision
    making and performance, but also strengthen Agency oversight.
    That is, as weaknesses and deficiencies are considered from
    different viewpoints, there is an increased likelihood of
    making recommendations that provide for practical and effective
    solutions. If confirmed, I commit to being deliberate in my
    actions to promote and maintain an inclusive working
    environment for all within the FDIC OIG. Such an environment
    will not only attract a diverse set of talent but also help in
    retaining the diverse talent the OIG attracts.
        As noted in my response to your first question, I will look
    to the OIG's DEIA Strategic Plan to guide the Office's efforts
    to create an inclusive working environment. The Plan is built
    on four main goals that can serve to enhance inclusivity, and I
    will vigorously pursue these goals:

      1.  Purpose--We have a shared purpose.

      2.  People--Each person is valued in our office.

      3.  Process--Our processes are fair and equitable.

      4.  Progress--We strive to mature our DEIA Program.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR SCOTT
                           FROM JENNIFER FAIN

    Q.1. As the nominee to serve as the Inspector General of the
    FDIC, it is critical that you be completely independent and
    vigorous in your auditing and investigatory work at the FDIC,
    if confirmed. We need an independent watchdog at the FDIC to
    ensure there is no waste, fraud, or abuse.
        Unfortunately, we have seen politics overtake good policy
    under Chairman Gruenberg's leadership, such as in the case of
    Operation Choke Point and, more recently, when Mr. Gruenberg
    and Rohit Chopra carried out an unprecedented coup, sidelining
    the then-Chairman Jelena McWilliams.
        If confirmed as the FDIC IG, would you commit to being
    independent and vigorous in your audits and investigations into
    the activities of the FDIC, even if doing so might ruffle
    feathers at the agency?

    A.1. Yes. In some cases, a Federal Agency will need to make
    changes to its practices and operations in order to implement
    corrective actions recommended by an OIG based on specific
    findings. An OIG's oversight work may not be well-received by a
    Federal Agency because of disagreement about the findings and/
    or corrective actions recommended. Instances of disagreement
    are to be expected as part of this oversight work. Nonetheless,
    independence of an IG from Agency management is a key tenet in
    improving the efficiency and effectiveness of Federal programs
    and operations and ensuring there is no waste, fraud, or abuse.
    Such independence depends on the OIG conducting oversight
    activities of an Agency without bias or partisanship. Without
    compromising the independence and objectivity of the FDIC OIG,
    I intend to maintain a productive working relationship with the
    Chairman, Board of Directors, and Senior Executives, including
    this Committee and Congress. Therefore, if confirmed, I am
    committed to conducting oversight of the activities of the FDIC
    in an independent--unbiased and nonpartisan--and vigorous
    manner.

    Q.2. Do you believe that the FDIC Inspector General should
    ensure that FDIC rules and regulations adhere to the spirit and
    intent of Congressional legislation?

    A.2. Yes. Among its duties, the FDIC IG oversees how the FDIC
    maintains stability and public confidence in the U.S. financial
    system. This includes conducting audits, evaluations, other
    reviews, and investigations of the Agency's actions to ensure
    that financial institutions operate in a safe and sound manner.
    Insofar as the FDIC establishes rules and regulations that
    impact the Agency's ability to carry out its responsibilities,
    I believe the IG has the duty to ensure that the FDIC conducts
    these regulatory activities within the authority provided by
    laws, rules, and regulation. To that end, under the IG Act, the
    FDIC OIG has an obligation to review legislation and
    regulations. This effort is carried out by members of the FDIC
    OIG's Office of General Counsel. I commit to maintaining such
    an approach if I am confirmed. Additionally, I would seek to
    continue the FDIC OIG's participation as a Member of the
    Legislation Committee of the Council of the Inspectors General
    on Integrity and Efficiency to more broadly inform my thinking
    on Federal legislation that may impact the FDIC. This Committee
    provides timely information to the IG community about
    Congressional initiatives; solicits the technical advice of the
    IG community in response to proposed legislation; and presents
    views and recommendations to Congress and the Office of
    Management and Budget on legislative matters that broadly
    affect the IG community.

    Q.3. Will you commit that, if confirmed, you will respond in a
    timely manner and fully comply with all information requests
    from me and other Members of the Committee? Please answer
    ``yes'' or ``no.''

    A.3. Yes. If confirmed, I commit to responding in a timely
    manner and fully complying with all information requests from
    the Committee, Congress, and other stakeholders consistent with
    any applicable legal restrictions.

    Q.4. If no, please explain.

    A.4. N/A.
                                    ------

           RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNOCK
                           FROM JENNIFER FAIN

    Q.1. If confirmed as Inspector General of the Federal Deposit
    Insurance Corporation (FDIC), what steps would you take to
    ensure the independence and objectivity of your audits,
    investigations, evaluations, and reviews, particularly those
    involving FDIC employees and contractors?

    A.1. To maintain stakeholder confidence in the FDIC OIG, its
    oversight must be independent of the FDIC, including its
    employees and contractors, both in fact and appearance.
    Independence is a key characteristic of IGs and a fundamental
    principle of the Inspector General Act of 1978 (as amended)
    which includes specific protections for IG independence. These
    protections include, for example, direct and prompt access to
    the Agency head, separate personnel hiring authority, separate
    and independent legal counsel, separately identified budget
    requests, timely access to all Agency records, and a dual
    reporting obligation to the head of the Agency and Congress.
        If confirmed, I commit to ensuring that the FDIC OIG has
    robust measures in place to identify, assess, and minimize any
    potential (or perceived) threats to the independence and
    objectivity in the performance of the OIG's oversight
    responsibilities, particularly as it relates to FDIC employees
    and contractors. This includes taking steps to ensure that
    threats to independence are suitably managed and work
    undertaken by the OIG is performed with objectivity and
    integrity, and free from inappropriate influences and
    considerations (e.g., current or past responsibilities that may
    pose a threat due to conflict, familiarity, bias, or
    influence).
        The independence standards for conducting audits,
    investigations, evaluations, and reviews are reflected in the
    requisite professional standards established by the Government
    Accountability Office and the Council of the Inspectors General
    on Integrity and Efficiency. The FDIC OIG is statutorily
    required to comply with these standards and subject to an
    independent, comprehensive peer review of its audit,
    evaluation, and investigation operations once every 3 years.
    Further, in keeping with the IG Act, I commit to keeping the
    Committee, and Members of Congress, fully and currently
    informed of any instances where the Agency, its management,
    employees, and/or contractors interfere with the FDIC OIG's
    independence, should I be confirmed. Reporting such
    interference in the OIG's semiannual reports to Congress is
    also required under the IG Act and I will adhere to that
    requirement.
                                    ------

             RESPONSES TO WRITTEN QUESTIONS OF CHAIR BROWN
                          FROM CLAUDIA SLACIK

    Q.1. The collapse of Silicon Valley Bank and other troubled
    banks in March reminded us that crises in any part of the
    financial sector can happen quickly, especially in the age of
    social media. While SIPC is not responsible for backstopping
    failed banks, it may need to act if a brokerage runs into
    trouble. Are there lessons that SIPC can learn from the bank
    failures about preparedness in the case of brokerage to ensure
    it can respond fast to protect American savers, if needed?

    A.1. Thank you for your question, Chair Brown.
        SIPC understands the need for quick action and has
    institutional experience in that regard given the nature of the
    securities industry. The potential price volatility of
    securities requires that SIPC be able to act promptly and
    decisively when a broker-dealer fails. As one example, SIPC
    commenced the liquidation of MF Global, the eighth largest
    bankruptcy in history at the time, the same day that it was
    notified by the Securities and Exchange Commission that
    customers needed protection. In addition to having requisite
    staff and systems ready, SIPC regularly engages with the staffs
    of SEC and FINRA. Because they have investigatory authority,
    the SEC and FINRA are required to notify SIPC when a brokerage
    firm is in financial trouble and customer assets are missing.
    Consequently, SIPC should be informed by the regulators as a
    brokerage firm encounters financial difficulty and would be
    ready to respond quickly to protect American investors if it
    were to fail.
        SIPC also continues to modernize its internal operations
    and recruit and retain talented staff. SIPC continues to
    increase its reserves, which currently total more than $4.4
    billion, and manage its risk profile, including evaluating
    alternative sources of liquidity.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR SCOTT
                          FROM CLAUDIA SLACIK

    Q.1. What would you consider to be the most significant issue
    on the horizon for SIPC to address, and why?
        How should SIPC address this issue?

    A.1. Thank you for your questions, Ranking Member Scott.
        I consider emerging technologies with resulting changes in
    the securities industry to be the most significant issue that
    SIPC faces. SIPC is staying current on these various emerging
    technologies and changes in the security industry. These
    include digital assets, 24-hour trading, and shortening of the
    settlement period for securities trades, among others. To
    address these and other potential issues, SIPC continues to
    increase its reserves, which now total more than $4.4 billion,
    and manage its risk profile, including evaluating alternative
    sources of liquidity. It has remained engaged with the SEC and
    FINRA to make sure that the current investor protection regime
    remains robust and continues to support the regulators' efforts
    to have in place appropriate safeguards of customer assets so
    that customers do not lose assets even if a firm fails
    financially. SIPC also continues to modernize its internal
    operations and recruit and retain talented staff.

    Q.2. In what ways, if any, could SIPC better articulate to the
    average investor the type and extent of the protection that
    SIPC provides?

    A.2. SIPC maintains a robust investor information network
    through its website, social media, ``AskSIPC'' email tool, and
    prompt responsiveness to inquiries from the public. However, it
    could and should continue to increase awareness about the type
    and extent of SIPC protection. With younger investors entering
    the marketplace, financial literacy, including about SIPC, is
    increasingly important. Most recently, SIPC collaborated with
    the SEC on several educational initiatives and joined in IOSCO
    World Investor Week to raise awareness of the importance of
    financial literacy. SIPC should continue to educate investors
    about SIPC including through its continued initiatives with
    public media, issuance of investor bulletins, and participation
    in in-person events.

    Q.3. Will you commit that, if confirmed to a new term, you will
    respond in a timely manner and fully comply with all
    information requests from me and other Members of the
    Committee? Please answer ``yes'' or ``no.''
        If no, please explain.

    A.3. Yes.
                                    ------

                   RESPONSES TO WRITTEN QUESTIONS OF
                  SENATOR MENENDEZ FROM CLAUDIA SLACIK

    Q.1. Last year, we saw FTX and others in the cryptocurrency
    market go under, with investors unsure if missing assets and
    cash would be returned. However, investors are still putting
    hard earned dollars into the relatively new asset class.
        Ms. Slacik, are investors protected by the SIPC in
    situations where they are invested in cryptocurrency or crypto
    assets?
        What should SIPC be doing to promote investor education to
    bring this awareness?

    A.1. Thank you for the questions, Senator Menendez.
        In answer to the first question, SIPC protection extends
    only to cash and securities held in custody for specified
    purposes in a customer securities account at a SIPC-member
    broker dealer. The status of many digital assets is presently
    unresolved, and many such assets do not qualify as
    ``securities'' within the meaning of the Securities Investor
    Protection Act (SIPA), the statute under which SIPC operates.
    Moreover, under current SEC guidance, the circumstances under
    which a broker-dealer may hold in custody for customers digital
    assets that qualify as securities are limited. Therefore, SIPC
    currently has a limited role with respect to digital assets,
    and most investors in cryptocurrency and crypto assets are not
    protected by SIPC. If, however, digital assets were defined as
    ``securities'' under the SIPC statute, and a SIPC-member in
    liquidation under SIPA held them for customers for any of the
    statutorily specified purposes, those customers would receive
    the same protection as any other customers eligible for SIPC
    protection.
        In answer to the second question, as it currently is doing,
    SIPC should continue in its efforts with respect to investor
    education by explaining what SIPC protects--and what it does
    not protect, including digital assets that are not securities
    held at SIPC-member broker-dealers. SIPC should continue
    engaging media, and use platforms including its website and
    social media, to spread this awareness. It should also continue
    working with the SEC and FINRA in explaining to investors the
    scope and limits of SIPC protection.
                                    ------

           RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNOCK
                          FROM CLAUDIA SLACIK

    Q.1. How would your experience as Chief Banking Officer at the
    Export-Import Bank of the United States inform your investor
    protection and education efforts at the Securities Investor
    Protection Corporation?

    A.1. Thank you for the question, Senator Reverend Warnock.
        In my career, the concerns of U.S. customers and investors
    have been paramount. At the Export-Import Bank (Ex-Im Bank), my
    work supported dozens of U.S. companies, which employed
    thousands of middle and working-class American workers. These
    are the same retail investors whom SIPC primarily aims to
    protect. I believe in the importance of SIPC's mission to
    safeguard the assets of these retail investors custodied for
    them at SIPC member broker-dealers, and I am committed to
    supporting it. At the Ex-Im Bank, my responsibilities included
    expanding the public's awareness of the Bank. I can use that
    experience in support of SIPC's investor education efforts to
    inform the public about what SIPC protects, and, just as
    importantly, what SIPC does not protect, including most crypto
    assets. By the same token, Ex-Im Bank supported American jobs
    by facilitating the export of U.S. goods and services at no
    cost to taxpayers. My goal at SIPC is similar--to ensure that
    the SIPC Fund is sufficient to protect investors against the
    loss of their cash and securities, at no cost to the American
    taxpayer.
                                    ------

             RESPONSES TO WRITTEN QUESTIONS OF CHAIR BROWN
                          FROM WILLIAM BRODSKY

    Q.1. The collapse of Silicon Valley Bank and other troubled
    banks in March reminded us that crises in any part of the
    financial sector can happen quickly, especially in the age of
    social media. While SIPC is not responsible for backstopping
    failed banks, it may need to act if a brokerage runs into
    trouble. Are there lessons that SIPC can learn from the bank
    failures about preparedness in the case of brokerage to ensure
    it can respond fast to protect American savers, if needed?

    A.1. Thank you for your question, Chair Brown.
        Yes, SIPC watched carefully how quickly the banking
    regulators and other parts of the Executive branch acted to
    address the rapid and unexpected collapse of Silicon Valley
    Bank. With that in mind, SIPC continues to work to ensure that
    if any large SIPC member broker-dealer failed unexpectedly, it
    is prepared to act within its authority in a similar prompt and
    comprehensive fashion. SIPC has institutional experience in
    acting swiftly should it become necessary; SIPC commenced the
    liquidation of MF Global, the eighth largest bankruptcy in
    history at the time, the same day that it was notified by the
    Securities and Exchange Commission. In addition to having
    requisite staff and systems ready, SIPC remains continuously
    engaged with the staffs of SEC and FINRA. Consequently, SIPC
    should be informed by the regulators as a brokerage firm
    encounters financial difficulty and would be ready to respond
    quickly to protect American investors if it were to fail.
        SIPC also continues to modernize its internal operations
    and recruit and retain talented staff. SIPC continues to
    increase its reserves, which currently total more than $4.4
    billion, and manage its risk profile, including evaluating
    alternative sources of liquidity. It is also currently working
    with the SEC and the Department of the Treasury to enable rapid
    access to its $2.5 billion statutory borrowing ability from the
    Government should it ever become necessary.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR SCOTT
                          FROM WILLIAM BRODSKY

    Q.1. What would you consider to be the most significant issue
    on the horizon for SIPC to address, and why?
        How should SIPC address this issue?

    A.1. Thank you for your questions, Ranking Member Scott.
        I consider SIPC's ability to respond quickly to the
    unexpected large broker-dealer failure to be the most
    significant issue. SIPC noted the rapid response of the banking
    regulators and other parts of the Executive branch to address
    the unexpected collapse of Silicon Valley Bank. Accordingly,
    SIPC continues to work to ensure that if any large SIPC member
    broker-dealer were to fail unexpectedly, it would be prepared
    to act within its authorities in a similar prompt and
    comprehensive fashion. In addition to having requisite staff
    and systems ready, SIPC remains continuously engaged with the
    staffs of SEC and FINRA. Consequently, SIPC should be informed
    by the regulators as a brokerage firm encounters financial
    difficulty and would be ready to respond quickly to protect
    American investors if it were to fail. SIPC continues to
    increase its reserves, which currently total more than $4.4
    billion, and manage its risk profile. It is also currently
    working with the SEC and the Department of the Treasury to
    enable rapid access to its $2.5 billion statutory borrowing
    authority from the Government should it ever become necessary
    and is evaluating alternative sources of liquidity.

    Q.2. In what ways, if any, could SIPC better articulate to the
    average investor the type and extent of the protection that
    SIPC provides?

    A.2. SIPC maintains a robust investor information network
    through its website, social media, ``AskSIPC'' email tool, and
    prompt responsiveness to all inquiries from the public.
    However, it could and should continue to increase awareness
    about the type and extent of SIPC protection. With younger
    investors entering the marketplace, financial literacy,
    including about SIPC, is increasingly important. Most recently,
    SIPC collaborated with the SEC on several educational
    initiatives and joined in IOSCO World Investor Week to raise
    awareness of the importance of financial literacy. SIPC should
    continue to educate investors about SIPC protection including
    through continued efforts with public media, investor
    bulletins, and in-person events.

    Q.3. Will you commit that, if confirmed to a new term, you will
    respond in a timely manner and fully comply with all
    information requests from me and other Members of the
    Committee? Please answer ``yes'' or ``no.''
        If no, please explain.

    A.3. Yes.
                                    ------

                   RESPONSES TO WRITTEN QUESTIONS OF
                 SENATOR MENENDEZ FROM WILLIAM BRODSKY

    Q.1. Last year, we saw FTX and others in the cryptocurrency
    market go under, with investors unsure if missing assets and
    cash would be returned. However, investors are still putting
    hard-earned dollars into the relatively new asset class.
        Mr. Brodsky, are investors protected by the SIPC in
    situations where they are invested in cryptocurrency or crypto
    assets?
        What should SIPC be doing to promote investor education to
    bring this awareness?

    A.1. Thank you for the questions, Senator Menendez.
        In answer to the first question, SIPC protection extends
    only to cash and securities held in custody for specified
    purposes in a customer securities account at a SIPC-member
    broker dealer. The status of many digital assets is presently
    unresolved, and many such assets do not qualify as
    ``securities'' within the meaning of the Securities Investor
    Protection Act (SIPA), the statute under which SIPC operates.
    Moreover, under current SEC guidance, the circumstances under
    which a broker-dealer may hold in custody for customers digital
    assets that qualify as securities are limited. Therefore, SIPC
    currently has a limited role with respect to digital assets,
    and most investors in cryptocurrency and crypto assets are not
    protected by SIPC. If, however, digital assets were defined as
    ``securities'' under the SIPC statute, and a SIPC-member in
    liquidation under SIPA held them for customers for any of the
    statutorily specified purposes, those customers would receive
    the same protection as any other customers eligible for SIPC
    protection.
        In answer to the second question, as it currently is doing,
    SIPC should continue in its efforts with respect to investor
    education by explaining what SIPC protects--and what it does
    not protect, including digital assets that are not securities
    held at SIPC-member broker-dealers. SIPC should continue
    engaging media, and use platforms including its website and
    social media, to spread this awareness. It should also continue
    working with the SEC and FINRA in explaining to investors the
    scope and limits of SIPC protection.
                                    ------

           RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNOCK
                          FROM WILLIAM BRODSKY

    Q.1. In your view, what aspects of financial literacy and
    investor education need to be addressed and improved
    immediately?

    A.1. Thank you for the question, Senator Reverend Warnock.
        I have spent my entire career in the investment business. I
    truly believe that this country has the best investment
    markets, the most innovative financial products, and has the
    best regulated financial markets of any major country in the
    world. What concerns me most is that, as a country, we do a
    very poor job at educating our citizens at every level of
    education from primary school, high school, college, and even
    graduate school on how to save, invest, and manage one's
    financial affairs. I view this not only as a missed opportunity
    but as a great disservice to our citizens.
        My view is that we need a concerted effort to teach people
    the basics of spending and investing, not speculating, as a way
    of improving the financial health and security of our vast and
    diverse citizenry. SIPC should do its part by continuing its
    investor education efforts in explaining what SIPC protects,
    and what it does not protect, including digital assets, that
    are not securities held at SIPC-member broker-dealers.
                  Additional Material Supplied for the Record

                     LETTERS SUBMITTED REGARDING NOMINEES

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      ``THE NCUA MUST STEP UP FOR OVERSEAS SEVICEMEMBERS'', CREDIT UNION
                            TIMES, BY MARY MCDUFFIE

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