Stefani Reynolds/Bloomberg
UPDATE: This article includes the result of the Senate vote.
The Senate has voted to confirm Scott Bessent, billionaire hedge fund manager, as Treasury Secretary. The final vote was 68-29 in favor of his confirmation.
A number of Democrats voted nay. Sen. Elizabeth Warren, D-Mass., ranking member of the Senate Banking Committee, gave dire warnings about Bessent’s views toward financial and bank regulation in her remarks on the Senate floor before the vote.
“We don’t need less oversight of the giant banks and Wall Street movers and shakers,” she said. “Risk is building in the system. The too-big-to-fail banks are quietly taking on riskier investments… Without significant changes, another financial crash is coming.”
The banking industry immediately cheered the news.
“ICBA and the nation’s community bankers congratulate Scott Bessent on his confirmation to serve as the next Treasury secretary,” said Independent Community Bankers of America President and CEO Rebecca Rainey in a statement. “During his nomination hearing, Bessent called for regulatory policies that will allow community banks, small businesses, and local communities to lead the nation’s economic recovery.”
The Senate voted 67-23 over the weekend in favor of teeing up final passage of Bessent’s nomination in the upper chamber on Monday.
Bessent
Other Democrats, including the panel’s ranking member Sen. Ron Wyden, D-Ore., withheld their support, citing concerns with Bessent’s tax record. Bessent, Wyden said, took advantage of a disputed interpretation of how Medicare taxes would apply to the income he earned as part of his hedge fund, Key Square Group.
“Like a lot of Wall Street titans, he’s opted out of paying a fair share into Medicare, starving the program of almost a million dollars over just three years,” Wyden said. “The IRS has gone to court twice to ban this particular scheme and won both times.”
Fifteen Democrats voted in favor of considering Bessent’s nomination on the Senate floor last week, suggesting they would vote to confirm him.
Bessent is expected to be a key voice in extending the tax cuts passed under President Donald Trump’s first term, and in figuring out the funding to do so. He’ll also help lead the Trump administration’s tariff policy, which is expected to have huge implications for both the economy and, by extension, the banking system.
Bessent will additionally have input on bank policy in his capacity as head of Treasury, which includes the Office of the Comptroller of the Currency, and a role in the Financial Stability Oversight Committee. He will wield influence within Trump’s circle as Trump’s main connection to Wall Street.
In questions for the record, Bessent weighed in on banking issues, including suggesting that he would be open to reconsidering some key policy questions around deposit insurance.
“I believe it is appropriate to evaluate the level of deposit insurance limits for small business transaction accounts, if confirmed, look forward to working with you on this,” Bessent said.
He didn’t lend support to the idea of overhauling the Federal Deposit Insurance Corp.
“The FDIC serves an important function in protecting American depositors and providing stability to our banking system,” he said in a response to a question about privatizing the FDIC. “If confirmed, I look forward to working with you and your staff on ways to improve the operations of our deposit insurance system.”
He wouldn’t say whether he would have approved the systemic risk exception for the failure of Silicon Valley Bank and Signature Bank, a move that requires the Treasury secretary’s sign-off.
“Data on deposit flows and reports of deposit withdrawals across the banking system that were said to have been relied upon to invoke the systemic risk exception for those financial institutions are not publicly available,” Bessent said. “We need to ensure that the U.S. banking system is safe and resilient. Competition in banking is an important component to ensure the robust provision of financial services to American individuals, families, and businesses to drive economic growth.”
He also said that he would be open to
“I look forward to working on the current status of the conservatorship of Fannie Mae and Freddie Mac,” Bessent wrote. “The conservatorships have persisted for more than 15 years, and no conservatorship should be indefinite. However, any actions pursued should be carefully designed and executed.”