Warren to oppose Weiss as Treasury undersecretary

Sen. Elizabeth Warren plans to oppose President Barack Obama’s nomination of Antonio Weiss, a Wall Street investment banker, to be Treasury Undersecretary for Domestic Finance, another sharp-elbowed move by the progressive movement’s most prominent leader.

Weiss, head of global investment banking at Lazard, is widely respected on Wall Street. But he advised on Burger King’s acquisition of Canadian doughnut chain Tim Horton’s, a so-called “tax inversion deal.” Defenders say the deals are commonplace across Wall Street and Weiss did not advise on the tax portion. Such arguments have not swayed the Massachusetts Democratic senator, a persistent Wall Street critic who appears headed to a leadership role in the next Congress.


A Warren adviser told POLITICO: “She is a no on Antonio Weiss. She was a Treasury official herself, she cares a lot about who is in the domestic finance role. It oversees Dodd-Frank implementation and other core economic policy-making.”

( Also on POLITICO: Big donors urge Warren to run)

The adviser added that Warren “agrees with Senator Grassley that his past work with corporate inversions is a major issue, and she’s had growing concerns with the Administration being loaded with so many appointees from Wall Street rather than more people who would bring different perspectives.”

The adviser also argued that Weiss’ mergers and acquisitions background on Wall Street was not a good fit for the domestic finance post. “She also doesn’t believe that his investment banking background – which focuses almost entirely on Europe and on international mergers and acquisitions – puts him in a good position to oversee domestic issues like consumer protection and US financial regulation,” the adviser said.

Weiss’ nomination came as something of a surprise given that the Obama White House has generally avoided naming financiers or corporate executives to top administration posts, often to the consternation of business groups. The president selected career public servant Jack Lew for Treasury rather than picking anyone with a long corporate resume. Lew worked at Citigroup but is not deeply connected on Wall Street.

( Also on POLITICO: Reid taps Warren as envoy to liberals)

The White House also declined to name a number two at Treasury with deep Wall Street ties despite considering Morgan Stanley Chief Financial Officer Ruth Porat for the job. The administration wound up choosing the Fed’s Sarah Bloom Raskin for deputy Treasury secretary. The undersecretary for domestic finance at Treasury, a post previously held by Mary Miller, is generally a key policymaker who helps negotiate fiscal issues with Congress while overseeing financial services regulation.

Wall Street executives were thrilled with Weiss’ nomination, viewing him as a talented banker who could help the administration better understand how markets might react to various proposals. It is not clear whether Warren’s nomination will lead other liberal Democrats to oppose Weiss. But the Massachusetts senator commands great respect within an increasingly liberal caucus and some senators could wind up following her lead. Weiss, a young star on Wall Street who made partner at Lazard at 32, has been a big donor and fundraising bundler for President Obama.

Supporters of Weiss note that he coauthored a report in 2012 with the Center for American Progress on reforming the tax system to help boost the middle class and has the backing of several progressive leaders. Neera Tanden president of the Center for American Progress said of Weiss: “Antonio not only brings significant knowledge and expertise in financial markets, he brings an understanding and a deep commitment to the goals of this administration, including implementing smart policies that spur economic growth and support the middle class.”

And Gene Sperling, former director of the National Economic Council in the Obama White House said Weiss “is someone who not only combines a progressive heart for helping workers and those most in need with hard-headed business experience, but also has the background and antenna necessary to ensure that policies concerning high-finance on Wall Street are both designed and implemented to work for small businesses and working families on Main Street.”