[Senate Hearing 115-245]
[From the U.S. Government Publishing Office]
S. Hrg. 115-245
NOMINATIONS OF ERIC D. HARGAN,
DAVID MALPASS, ANDREW K. MALONEY,
AND BRENT JAMES McINTOSH
=======================================================================
HEARING
before the
COMMITTEE ON FINANCE
UNITED STATES SENATE
ONE HUNDRED FIFTEENTH CONGRESS
FIRST SESSION
on the
NOMINATIONS OF
ERIC D. HARGAN, TO BE DEPUTY SECRETARY, DEPARTMENT OF HEALTH AND HUMAN
SERVICES; DAVID MALPASS, TO BE UNDER SECRETARY FOR INTERNATIONAL
AFFAIRS, DEPARTMENT OF THE TREASURY; ANDREW K. MALONEY, TO BE DEPUTY
UNDER SECRETARY FOR LEGISLATIVE AFFAIRS, DEPARTMENT OF THE TREASURY;
AND BRENT JAMES McINTOSH, TO BE GENERAL COUNSEL, DEPARTMENT OF THE
TREASURY
__________
JUNE 7, 2017
__________
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Printed for the use of the Committee on Finance
_________
U.S. GOVERNMENT PUBLISHING OFFICE
30-209-PDF WASHINGTON : 2018
COMMITTEE ON FINANCE
ORRIN G. HATCH, Utah, Chairman
CHUCK GRASSLEY, Iowa RON WYDEN, Oregon
MIKE CRAPO, Idaho DEBBIE STABENOW, Michigan
PAT ROBERTS, Kansas MARIA CANTWELL, Washington
MICHAEL B. ENZI, Wyoming BILL NELSON, Florida
JOHN CORNYN, Texas ROBERT MENENDEZ, New Jersey
JOHN THUNE, South Dakota THOMAS R. CARPER, Delaware
RICHARD BURR, North Carolina BENJAMIN L. CARDIN, Maryland
JOHNNY ISAKSON, Georgia SHERROD BROWN, Ohio
ROB PORTMAN, Ohio MICHAEL F. BENNET, Colorado
PATRICK J. TOOMEY, Pennsylvania ROBERT P. CASEY, Jr., Pennsylvania
DEAN HELLER, Nevada MARK R. WARNER, Virginia
TIM SCOTT, South Carolina CLAIRE McCASKILL, Missouri
BILL CASSIDY, Louisiana
Chris Campbell, Staff Director
Joshua Sheinkman, Democratic Staff Director
(ii)
C O N T E N T S
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OPENING STATEMENTS
Page
Hatch, Hon. Orrin G., a U.S. Senator from Utah, chairman,
Committee on Finance........................................... 1
Wyden, Hon. Ron, a U.S. Senator from Oregon...................... 2
Portman, Hon. Rob, a U.S. Senator from Ohio...................... 8
WITNESS
Thompson, Hon. Tommy, former Governor of Wisconsin, Madison, WI.. 6
ADMINISTRATION NOMINEES
Hargan, Eric D., nominated to be Deputy Secretary, Department of
Health and Human Services, Washington, DC...................... 9
Malpass, David, nominated to be Under Secretary for International
Affairs, Department of the Treasury, Washington, DC............ 11
Maloney, Andrew K., nominated to be Deputy Under Secretary for
Legislative Affairs, Department of the Treasury, Washington, DC 12
McIntosh, Brent James, nominated to be General Counsel,
Department of the Treasury, Washington, DC..................... 14
ALPHABETICAL LISTING AND APPENDIX MATERIAL
Casey, Robert P., Jr.:
Letter from Senator Casey to Secretary Mnuchin, May 25, 2017. 23
Hargan, Eric D.:
Testimony.................................................... 9
Prepared statement........................................... 24
Biographical information..................................... 25
Responses to questions from committee members................ 30
Hatch, Hon. Orrin G.:
Opening statement............................................ 1
Prepared statement........................................... 40
Maloney, Andrew K.:
Testimony.................................................... 12
Prepared statement........................................... 41
Biographical information..................................... 42
Responses to questions from committee members................ 55
Malpass, David:
Testimony.................................................... 11
Prepared statement........................................... 56
Biographical information..................................... 58
Responses to questions from committee members................ 67
McIntosh, Brent James:
Testimony.................................................... 14
Prepared statement........................................... 74
Biographical information..................................... 75
Responses to questions from committee members................ 82
Portman, Hon. Rob:...............................................
Opening statement............................................ 8
Thompson, Hon. Tommy:............................................
Testimony.................................................... 6
Wyden, Hon. Ron:
Opening statement............................................ 2
Prepared statement........................................... 88
NOMINATIONS OF ERIC D. HARGAN, TO BE.
DEPUTY SECRETARY, DEPARTMENT OF.
HEALTH AND HUMAN SERVICES; DAVID.
MALPASS, TO BE UNDER SECRETARY FOR.
INTERNATIONAL AFFAIRS, DEPARTMENT OF.
THE TREASURY; ANDREW K. MALONEY, TO.
BE DEPUTY UNDER SECRETARY FOR.
LEGISLATIVE AFFAIRS, DEPARTMENT OF THE.
TREASURY; AND BRENT JAMES McINTOSH,.
TO BE GENERAL COUNSEL,.
DEPARTMENT OF THE TREASURY
----------
WEDNESDAY, JUNE 7, 2017
U.S. Senate,
Committee on Finance,
Washington, DC.
The hearing was convened, pursuant to notice, at 10:15
a.m., in room SD-215, Dirksen Senate Office Building, Hon.
Orrin G. Hatch (chairman of the committee) presiding.
Present: Senators Grassley, Crapo, Portman, Toomey, Heller,
Cassidy, Wyden, Stabenow, Cantwell, Menendez, Bennet, Casey,
and McCaskill.
Also present: Republican Staff: Chris Campbell, Staff
Director; Mark Prater, Deputy Staff Director and Chief Tax
Counsel; Kimberly Brandt, Chief Health-care Investigative
Counsel; and Nicholas Wyatt, Tax and Nominations Professional
Staff Member. Democratic Staff: Joshua Sheinkman, Staff
Director; Michael Evans, General Counsel; Peter Gartrell,
Investigator; and Ian Nicholson, Investigator.
OPENING STATEMENT OF HON. ORRIN G. HATCH, A U.S. SENATOR FROM
UTAH, CHAIRMAN, COMMITTEE ON FINANCE
The Chairman. The committee will come to order.
I would like to welcome everyone to this morning's hearing.
Today we will consider the nominations of Eric Hargan to
serve as Deputy Secretary of Health and Human Services; David
Malpass to serve as Under Secretary for International Affairs
of the Treasury; Andrew Maloney to serve in a position to be
designated as Assistant Secretary for Legislative Affairs of
the Treasury; and Brent McIntosh to serve as General Counsel
for the Treasury.
We welcome all of you to the Finance Committee. We
appreciate your willingness to serve in these important
positions.
Now before I get too far along, I want to thank all of my
fellow Senators for their support and presence today. As we all
know, the government is like a giant clock with many important
pieces, gears, and cogs. Today we are taking an important step
toward adding several more important pieces to keep that clock
functioning as it should.
It is also good to see that despite some frustrations over
the past few months, we have been able to return to normal
working order for processing nominees. As we all know, that
process includes bipartisan input, comity, good faith, and a
fair and robust vetting process. I would like to thank my
colleagues, particularly Senator Wyden, for working to move
this process along.
Each of these nominees will have important roles in the
administration, and we will talk more about the individual
posts and our nominees' excellent credentials and experience as
the hearing goes on.
Before we get to that, I want to be very clear about my
expectations regarding responsiveness to congressional
inquiries. Regardless of party affiliation, it is essential
that the administration make it a top priority to respond to
inquiries from members of Congress.
Let me say this a bit differently to make sure I am clear.
It does not matter who the President is, nor does it matter
which member of Congress is making the request. When an inquiry
is submitted to any administrative agency, we rightly expect to
receive a timely and responsive answer in return.
In the years that I have been the lead Republican on this
committee, I have asked virtually all of our nominees to commit
to being cooperative and responsive to congressional inquiries.
I have full confidence in each of the nominees who are before
us today. I do not have any reason to believe that they intend
to stonewall members of Congress, but I will ask all of them to
make a similar pledge to provide timely and responsive answers
to questions coming from members of this committee.
With that, I look forward to hearing from each of our
nominees as they share their visions and views here today. I
also look forward to what I hope will continue to be a full and
fair committee process that allows us to process these
nominations and report them to the full Senate in short order.
I will now recognize Senator Wyden for his opening
statement.
[The prepared statement of Chairman Hatch appears in the
appendix.]
OPENING STATEMENT OF HON. RON WYDEN,
A U.S. SENATOR FROM OREGON
Senator Wyden. Mr. Chairman, thank you. I want to begin by
thanking you for your courtesy this morning, and on a regular
basis. As you know, I am going back and forth between
Intelligence and this committee. I very much appreciate this.
The Chairman. Well, we are happy to work with you, Senator.
You are a good partner.
Senator Wyden. We have four nominees. After I make my
opening statement, the chairman has some questions for the
nominees, and he and I will have a brief colloquy, and we will
be on our way.
With the four nominees, I want to begin with Mr. Hargan's
nomination to be Health and Human Services Deputy Secretary. It
is the second highest ranking position at the Department,
effectively the chief operating officer, a huge job that
encompasses a lot more than making sure the trains run on time.
As an example, Mr. Hargan held this job on an acting basis
during the Bush administration. If The Wall Street Journal is
to be believed, Mr. Hargan used his position to block efforts
by the Food and Drug Administration to increase food safety
inspections.
Today, with the Department pushing a radical agenda that
would send the number of Americans without health coverage
through the roof, endanger seniors who count on Medicaid for
nursing home care, and slash programs that lay out basic living
standards for working families, Mr. Hargan and each department
nominee at Health and Human Services face serious questions
about how they would approach their roles.
Next, Mr. Malpass would lead the Office of International
Affairs at Treasury. This is the job where you advance our
leadership in the global economy. It is a tough one.
Senior Trump officials regularly contradict each other on
major economic policy questions. Then the President contradicts
them.
Is the administration for a strong dollar or a weak dollar?
Nobody knows. Statements and actions on climate, on trade, and
on NATO have alienated long-time allies and close economic
partners, handing China greater power and influence. We need
policies that give all Americans the chance to get ahead.
Mr. McIntosh is nominated to be Treasury General Counsel. A
key part of his portfolio would be, if confirmed, to guarantee
that sanctions and rules on foreign investment are enforced and
adhered to.
In an administration rife with conflicts, with scandals--
reportedly including undisclosed meetings with a Russian bank
under sanction--the Treasury General Counsel has to be
unflinching in their commitment to protect the public interest.
Finally, I want to take a moment to address the issue of
congressional oversight. It is closely relevant to the jobs Mr.
McIntosh, as General Counsel, and Mr. Maloney, as Deputy Under
Secretary for Legislative Affairs, are nominated to fill at the
Treasury Department.
Word has come from the Trump administration that the
executive branch, essentially, has free reign to ignore the
questions that come from Democrats conducting oversight. The
White House Counsel's Office is quoted as saying that the
administration will only respond to the chairmen of
congressional committees, and of course, the chairs are
Republicans. So this is a stated policy of stonewalling
Democratic lawmakers.
I want to be clear on this. I believe this is a disgrace. I
believe it is deeply undemocratic. Congressional members do not
conduct oversight of the executive branch for sport.
Our obligation to perform vigorous oversight is derived
from the powers laid out in article 1 of the Constitution. We
ask questions directly on behalf of the people we represent,
and it is those people--not just us in Congress--the
administration owes answers to.
Bottom line, this is not the behavior of a government that
sees itself as answerable to the American people.
Our committee, fortunately, has a bipartisan tradition of
supporting the right of the minority to get responses from the
administration regardless of party. One of the questions this
committee poses to every executive branch nominee that comes
before us is, ``Do you commit to provide a prompt response in
writing to any questions addressed to you by any Senator of
this committee?'' I will repeat the last part: it is ``any
Senator of the committee,'' not any Senator of the committee
with an ``R'' next to their name. When nominees answer ``yes,''
we take them at their word.
This is an issue near and dear to the Finance Committee.
Senator Grassley has a track record of fighting as hard as
anybody for transparency and responsiveness from the executive
branch. And I would wager that every member on my side of the
dais could rattle off examples of letters they have sent to the
administration only to get nothing substantive in return.
It is true that in the Trump administration, Treasury has
not been the worst culprit in terms of stonewalling oversight.
If confirmed, Mr. McIntosh and Mr. Maloney will have a direct
hand in working with Congress on these issues. Very shortly
they will get that same question asked of every nominee who
sits before this dais.
So it is my expectation that Mr. McIntosh and Mr. Maloney
will help guarantee that the Department responds to the
inquiries of all of the committee's members, not just those of
the President's party.
Mr. Chairman, I know we have a colloquy after you have some
obligatory matters that you have to take care of.
The Chairman. Well, thank you, Senator.
[The prepared statement of Senator Wyden appears in the
appendix.]
The Chairman. I have some obligatory questions I am going
to ask all the nominees. First, is there anything you are aware
of in your background that might represent a conflict of
interest with the duties of the office to which you have been
nominated?
Mr. Hargan. No, sir.
Mr. Malpass. No, sir.
Mr. Maloney. No, sir.
Mr. McIntosh. No, Mr. Chairman.
The Chairman. Okay.
Do you know of any reason, personal or otherwise, that
would in any way prevent you from fully and honorably
discharging the responsibilities of the office to which you
have been nominated?
Mr. Hargan. No, Mr. Chairman.
Mr. Malpass. No, sir.
Mr. Maloney. No, sir.
Mr. McIntosh. No, Mr. Chairman.
The Chairman. Thank you.
Do you agree without reservation to respond to any
reasonable summons to appear and testify before any duly
constituted committee of the Congress if you are confirmed?
Mr. Hargan. I agree, Mr. Chairman.
Mr. Malpass. I do.
Mr. Maloney. I agree.
Mr. McIntosh. I agree.
The Chairman. Finally, do you commit to provide a prompt
response in writing to any questions addressed to you by any
Senator of this committee?
Mr. Hargan. I do, Mr. Chairman.
Mr. Malpass. I agree.
Mr. Maloney. Yes, Mr. Chairman.
Mr. McIntosh. I agree.
The Chairman. Yes.
Senator Wyden. Did all four get to answer?
The Chairman. They have all answered in the affirmative of
our questions.
Senator Wyden. Mr. Chairman, if I might just have a brief
colloquy--and it follows up on what I touched on in my opening
statement.
I want to thank you, Mr. Chairman, for asking those
questions, as we both feel it has been a bipartisan tradition
in the Finance Committee for the chairman to ask those four
questions to every nominee, regardless of which party holds the
Senate majority, and regardless who is President.
In particular, I want to emphasize the fourth question. We
ask each nominee to assure us that he or she will provide a
prompt response in writing to any questions addressed to them
by any Senator of the committee. I emphasize the word ``any''
to remind our nominees the chairman and I expect nominees
confirmed by this committee to provide prompt responses to
questions from any member of the committee, Republican or
Democrat.
The Chairman. Well, thank you, Senator. I want to thank the
ranking member. I agree with him on this. When I was the
ranking member of this committee, the chairman, whether it was
Senator Baucus or Senator Wyden, insisted that nominees agree
to respond to questions asked by any member of this committee.
I have taken the same position, and I will continue to do so.
Senator Grassley. Mr. Chairman, can I give my comment on
that?
The Chairman. Yes, sir.
Senator Wyden. And, Senator Grassley, if I could just
respond very quickly to Chairman Hatch--and I know that you
have been tenacious in working with both sides of the aisle on
this, and I appreciate it. I am just running off to
Intelligence.
I want everybody to understand that what both Chairman
Hatch and I have said this morning is that we are insisting
that nominees agree to respond to questions asked by any member
of this committee. As Chairman Hatch noted, this has been a
really strong tradition of our committee.
It goes back to Max Baucus and Chairman Grassley, and I
just appreciate the chairman saying that he shares my view,
that we are going to insist that nominees agree to respond to
questions asked by--and underline it--any member of this
committee.
Senator Grassley, excuse my bad manners for having to run
out. I am in the Intelligence Committee right now, but I
appreciate both Chairman Hatch and you, because both of you
have made a strong commitment to this over the years.
The Chairman. I thank you, Senator.
Senator Grassley?
Senator Grassley. Well, as Senator Wyden was bringing up, I
think part of this has been emphasized by something that the
new administration made a decision to do. I just testified
before the House Oversight Committee, where the issue was
brought up by both Republicans and Democrats, and the
Republican chairman responded very positively to the Democratic
ranking member of the Oversight Committee about the necessity
of any member of Congress, whether it is Republican or
Democrat, having their oversight questions be answered as a
constitutional responsibility of anybody in the executive
branch of government as we do our constitutional
responsibility.
I am going to be sending a letter to the White House
expressing my view as former chairman of this committee, as
chairman of the Judiciary Committee, that whether you are
Republican or Democrat, there is a 1979 court decision that
makes it very clear that any member of Congress, not just the
chairman, should have their requests answered, their questions
answered, whatever the case might be.
The Chairman. Well, thank you, Senator.
Senator, I will turn to you for questions first. I will
hold my questions until later.
Let me just say, as I noted briefly in my opening remarks,
today we have these four nominations under consideration by the
committee. We are going to hear from each of the nominees
today, in the order they are introduced.
First, let me welcome Governor Tommy Thompson, one of the
people I really most respect, whom I have had a lot of
experience with over the years. He was just a terrific
Governor--the longest-serving Governor in Wisconsin's history.
Governor Thompson will be introducing Eric D. Hargan.
Governor Thompson, the floor will be yours. We will go to
you first.
STATEMENT OF HON. TOMMY THOMPSON,
FORMER GOVERNOR OF WISCONSIN, MADISON, WI
Governor Thompson. Thank you very much, Chairman Hatch,
Senator Wyden. Members of this very distinguished committee,
thank you very much.
It is an honor and privilege for me to return to this
distinguished committee to introduce a friend and outstanding
individual, Eric Hargan, someone whom I was privileged to have
worked with when I was Secretary of Health and Human Services.
Eric has been nominated to serve as a Deputy Secretary of
Health and Human Services. I am confident that there is no one
more qualified, and he will serve with honor and great ability.
Eric has outstanding academic credentials, including a
degree from Harvard University--almost as good as the
University of Wisconsin--and has had an incredible career. It
is not well-known, but Eric can speak Mandarin Chinese. It
gives you a sense of his impressive intellectual capabilities.
But what most impresses me about Eric is where he came
from. In many ways Eric's story parallels my own story.
Eric grew up in Mounds, IL. I grew up in Elroy, WI. Both
are small towns of under 1,500 individuals in rural America.
They are towns under stress. Both had more people living there
10 years ago than they do today, but they are places of
wonderful communities. They are the kind of places where you
can dial the wrong number and still end up talking for an hour.
Eric's dad was a union steward, Commissioner on the county
as my father was, and lived and owned land in the community.
Eric grew up on a gravel road. He did chores early in the
morning, and much of the food that his family ate came from
their own land.
Eric was taught early about the value of hard work and
dedication. Like me, Eric still owns the family homestead. He
remembers his values, where he came from.
Eric has led a distinguished career, both in public service
and in private practice. I had the privilege and pleasure of
working with Eric at the Department during my time as
Secretary. Eric served first as my Deputy General Counsel,
managing a team of over 400 attorneys on a wide range of
important matters. He went on to serve as Principal Associate,
Deputy Secretary, and later on became the Acting Deputy
Secretary, successfully overseeing all operations within the
Department.
I like to think of the Deputy Secretary, as Senator Wyden
said, as the Department's chief operating officer. It is a
position that keeps the trains running on time and makes sure
the important public health programs of that great department
are being run effectively and efficiently.
It is a challenging job, but Eric did not start in life on
a paved road, and I know he has the hard work, the dedication,
and the intellectual capabilities to do the job well and in the
best interest of the American people.
In short, I strongly recommend the confirmation of Eric
Hargan to serve as Deputy Secretary of Health and Human
Services without any hesitation, and with a high degree of
confidence. I want to thank this committee for giving me the
opportunity to appear in front of you and to absolutely
encourage you to support Eric Hargan.
The Chairman. Thank you, Governor.
Eric, that is a pretty strong statement there. I think it
is a real tribute to you.
I want to thank the Governor for showing up here.
Next on our list is David Malpass. Mr. Malpass is an
American economist who works for Encima Global, an economic
research firm he founded in 2008.
Recently, Mr. Malpass also served as an economic advisor to
President Trump, during the 2016 presidential election. He has
previously served as Deputy Assistant Treasury Secretary under
President Ronald Reagan, Deputy Assistant Secretary of State
under George H.W. Bush, and also worked as a chief economist
for Bear Stearns. Prior to all of that, Mr. Malpass worked in
Portland, OR as a CPA with Arthur Andersen System Consulting
Group.
Mr. Malpass holds a BA in physics from Colorado College and
an MBA from the University of Denver. He also studied
International Economics at Georgetown University School of
Foreign Service.
Third, we will hear from Andrew K. Maloney. Mr. Maloney has
over 25 years of various government experience, including most
recently as the vice president of global and external affairs
for the Hess Corporation. Mr. Maloney also has served as CEO of
Olgivy Government Relations, a prominent bipartisan government
affairs firm. He has also served as a senior advisor to several
presidential campaigns and counseled on presidential
legislative transition efforts.
Mr. Maloney's experience on the Hill includes senior
positions in the House, including working for members of the
House leadership.
Mr. Maloney received his BA from Randolph-Macon College and
his JD from the Catholic University's Columbia School of Law.
Last but not least, we will hear from Brent McIntosh, who
will be introduced by Senator Portman.
Senator Portman, please take it away. We will turn to you
to introduce Brent McIntosh.
OPENING STATEMENT OF HON. ROB PORTMAN,
A U.S. SENATOR FROM OHIO
Senator Portman. Mr. Chairman, thank you very much.
I am honored to have the opportunity to introduce Brent
McIntosh, who is a good friend and a former colleague who has
been nominated to serve as General Counsel at the Treasury
Department. As was indicated by the ranking member earlier,
this is an incredibly important job.
I also want to mention briefly, if I could, that I am
delighted that David Malpass is willing to step up and serve
again. He has provided good economic advice to me and many
colleagues over the years, and I appreciate his service going
back to the Reagan administration.
With regard to Mr. McIntosh, however, let me just say
briefly, I have known him for a long time. He served as Deputy
Assistant Attorney General when I was U.S. Trade Representative
in the George W. Bush administration. When I moved to OMB, the
Office of Management and Budget, he served as the Associate
Counsel to the President, as Deputy Assistant to the President,
and as Deputy Staff Secretary.
Mr. Chairman, as you know, I am a former Associate White
House Counsel myself, and I served with a very distinguished
lawyer by the name of Brent Hatch, your son. And as Brent will
tell you, the jobs that this Brent has had are very tough jobs.
He not only performed them well--and it is easy in those jobs
to get people upset with you from time to time because of the
advice you have to give--but he gained the respect of people
across the board.
In his time at the White House and at the Justice
Department, I saw him rise through the ranks because people
believed in his honesty, his intelligence, and his integrity.
He was a professional, and I am really delighted that he is
willing to step up and serve again.
After his service in the Bush administration, he returned
to private practice at the prestigious firm Sullivan and
Cromwell, now head of their cybersecurity practice--a
specialty, actually, which will be really important for the
Treasury Department at this time as we deal with the growing
threat of cyber-attacks.
So I think that Brent McIntosh's diverse experience as a
law clerk for two Federal Appeals Court judges, as an attorney
in three different roles in the Bush administration, and as an
attorney in private practice--a successful one--make him
exactly the kind of candidate we ought to be promoting. I am
very delighted to be here today to support his nomination, and
I urge my colleagues to do the same.
I thank you, Mr. Chairman, for giving me the opportunity to
say a few words about Mr. McIntosh.
The Chairman. Well, thank you, Senator. Those words are
very, very influential with all of us, I am sure.
That concludes the introductions for the four nominees as
far as I can see. Because there are four nominees, I would ask
that each of you limit your opening statements to no longer
than 5 minutes each.
We will start with you, Mr. Hargan. Please proceed if you
will.
STATEMENT OF ERIC D. HARGAN, NOMINATED TO BE DEPUTY SECRETARY,
DEPARTMENT OF HEALTH AND HUMAN SERVICES, WASHINGTON, DC
Mr. Hargan. Well, thank you, Mr. Chairman.
I would like to start by acknowledging some of the members
of my family who have joined me here today: my wife Emily, my
sons Thomas and Joe, and my sister Jody, who has come in from
Paducah, KY. So thank you all for being here with me today.
I would also like to thank Governor Thompson for that warm
introduction, and also thank all of the many dedicated public
servants who have loaned their talents to such great effect at
HHS over the years, such as Secretary Leavitt and Deputy
Secretary Azar during my previous time at HHS. I learned a lot
from Governor Thompson, Secretary Leavitt, and Deputy Secretary
Azar.
Thank you also, Chairman Hatch, and all of the members of
the committee, many of whom I have already visited during this
process. It has been a tremendous honor to meet with all of
you, and I look forward, if I have the privilege to receive the
approval of the Senate, to meet with and work with all of you
on the future challenges and opportunities at HHS.
Now I think it would be informative for me to give you some
of my personal background over and above what Governor Thompson
gave you. I am currently an attorney, most recently with a law
firm in its Chicago office, specializing in health-care law.
Before returning to the private practice of law, I served at
HHS under the George W. Bush administration as Deputy General
Counsel, then as Chief of Staff to the Deputy Secretary, and
finally as Acting Deputy Secretary.
My time at HHS serving in the position of Deputy Secretary
has provided me with valuable experience that would help inform
my work in the same role in this administration. I believe that
my years at HHS will help me with understanding the Department
and helping it fulfill the unique role the Department plays in
ensuring that the many programs that you in Congress have
committed to it are carried out well and faithfully, for the
benefit of the millions of Americans who rely on them.
And I understand this role, coming from my own personal
background. Although I live in Chicagoland now, I am originally
from deep southern Illinois, from a farm near a small town
called Mounds, population 810 or so, now I believe. My father
worked at a local DOE plant as a technician, and my mother was
an X-ray tech. My father was also a Korean War veteran, having
served as a sergeant in the Air Force as a mechanic. He was
also, on and off--as Governor Thompson noted--a local
politician, county commissioner, Pulaski County, VFW commander
in Mounds, and he also served as a union shop steward at the
local plant.
My mother, originally from a small Finnish community near
Duluth, MN, worked at our local health-care facility for 58
years prior to passing away a few years ago. I say ``health-
care facility'' advisedly because she started at what was then
St. Mary's Hospital in Cairo, IL. But this hospital underwent
the same evolution that has happened to so many small-town
hospitals throughout the country, as rural areas and their
health-care systems have suffered so much in the past decades.
St. Mary's, as is the unfortunate case with so many rural
hospitals, is no longer around, although the good local people
still continue to provide care to our community.
After leaving high school, I attended Harvard College, then
Columbia Law School, followed by years of private practice. And
all along, I have tried to carry on the family tradition of
public service, not only by joining President Bush's HHS, but
serving as Governor Rauner's co-chair for his health care and
human services transition in Illinois in 2014 and 2015, then
working with the State of Illinois in its State Health
Improvement Planning Council and the State Innovation Model
Workgroup.
So, between my father's example of public service and my
mother's longtime work at our local hospital, in some ways
combining public service and health care seems like fate to me.
I am proud President Trump has shown confidence in me to
nominate me to return to my former position at HHS.
And in Secretary Price, I see a leader with an ideal
background, a physician with experience as a provider in HHS's
programs, as well as having been a leading legislator on
Capitol Hill. I am hopeful that my experience as an attorney
and administrator will serve as a good complement to him and
enable us and the Department to achieve our mission on behalf
of the American people.
People have asked me, why go back in? But I cannot imagine,
if given the opportunity by you, that I could turn away. The
challenges are so great, whether in public health, in health-
care finance, in fostering innovation in health care, and in
the administration of human services, that I cannot imagine not
wanting to participate and to lend to the government both my
past experience at HHS as well as the fruit of my years of work
in the health-care sector since then to help as much as I can.
At HHS, I found in my previous tenure a congenial group of
public servants--who are dedicated to fulfilling their given
tasks. There is a level of patriotism and good attitude that I
think many outside would find surprising, given the level of
rhetoric we often see. Certainly, in a reversal of many
people's experiences, I walked out of a place of employment,
HHS, less cynical than I went in. I believe that there is a lot
we can do. We cannot solve everything at once, but we can, I
believe, make a real and lasting difference in Americans' lives
and health. That, in itself, will be a worthy goal.
Thank you, Mr. Chairman.
The Chairman. Thank you.
[The prepared statement of Mr. Hargan appears in the
appendix.]
The Chairman. Mr. Malpass, we will turn to you.
STATEMENT OF DAVID MALPASS, NOMINATED TO BE UNDER SECRETARY FOR
INTERNATIONAL AFFAIRS, DEPARTMENT OF THE TREASURY, WASHINGTON,
DC
Mr. Malpass. Chairman Hatch, Ranking Member Wyden, and
distinguished members of the Finance Committee, thank you for
the opportunity to appear before you today and for your
consideration of my nomination to be Under Secretary of
Treasury for International Affairs. I am deeply honored by the
President's decision to nominate me, and I have very much
appreciated meeting with many members of the committee and your
staff this spring.
Before discussing my own background, I would like to
introduce my family and thank my wonderful wife, Adele, and our
four children, Robert, Emily, Julia, and Peter. Robert and
Julia are here beside me; my wife Adele is behind. They have
shown wonderful support. My wife, Adele, is a former Budget
Committee staffer and someone who cares deeply about pursuing
policies that promote prosperity for all Americans. I am
particularly grateful for her hard work and support over the
last year and her unwavering commitment to our Nation. Thank
you.
Adele and I especially miss our parents on this occasion.
They were keenly interested in public policy and would have
been very proud to be here. Both our fathers died last year.
They were intensely patriotic. They served in the army in World
War II and chose to be buried with military honors. Adele's
mother died earlier, and my mother was not able to travel from
Colorado today, but I can feel their encouragement today as the
Nation faces major challenges.
While the position to which I have been nominated primarily
relates to international issues, my meetings with many of you
focused on the local impact on your constituents. I listened to
the variety and depth of your interests and concerns, and it
was a particular pleasure to meet with Senators from States
where I have strong personal ties, namely Oregon, Colorado,
Georgia, and Louisiana. If confirmed, I look forward to working
with you on a wide range of international issues, knowing they
will have significant impacts on citizens of every State.
The Under Secretary for International Affairs is
responsible for directing U.S. financial and economic relations
with foreign countries and managing our roles in multilateral
financial institutions such as the IMF and World Bank. The
position also involves supervising those charged with running
the CFIUS process, coordinating global financial regulatory
standards, negotiating agreements affecting the U.S. financial
sector, providing technical assistance to foreign financial
systems, and protecting the trustworthiness of the U.S. dollar.
I am ready and eager to take on these important
responsibilities and believe my upbringing, education, and 40-
year career spanning government, finance, and economics have
provided me with a solid foundation.
I was raised in East Jordan, MI, a small town in northern
Michigan. My great grandfather started an iron foundry there in
1883 that was expanded by my grandfather, my father, and the
cousins I grew up with. The East Jordan Iron Works, now called
EJ Co., is a fifth-generation foundry which still prides itself
on productivity, hard work, good-paying jobs, and strong
communities.
After earning a degree in physics, I then worked as a
contract administrator at Esco Corporation, a steel foundry in
Portland, OR. We made high-alloy steel used in digging
equipment, nuclear castings, and pulp mills. Both companies are
emblematic of the challenges and opportunities that will
continue to face our economy in the coming decades: they battle
foreign competition yet have prospered through innovation,
flexibility, talented leadership, and strong, skilled workers.
During the Reagan and first Bush presidencies, I worked on
economic and international affairs at the Treasury and State
Departments and served on the staff of the Senate Budget
Committee and the Joint Economic Committee. I had the privilege
of working for Secretary James Baker and for Senators Pete
Domenici and Bill Roth on many of the economic issues of the
1980s and early 1990s.
After completing my government service, I moved to New York
to work for Bear Stearns on macroeconomic analysis, later
becoming chief economist. I subsequently started my own firm,
Encima Global, which produced research on monetary and fiscal
policy, markets, and currencies. I have written extensively for
Forbes, The Wall Street Journal, and other national
publications on growth, ways to improve spending and tax
policies, the Federal Reserve, and currency stability as a core
path to higher living standards.
Thus, the theme of my upbringing, career, and publications
is that policies have a big impact on growth, jobs, and wages,
and that a key goal of fiscal and monetary policy development
is to create higher living standards for working and middle-
income citizens in the United States and around the world.
If confirmed, I will endeavor to fulfill my duties by
working closely with this committee and others in the Senate
and House.
Thank you again for the opportunity to appear before you
today. I would be happy to answer any questions.
The Chairman. Thank you.
[The prepared statement of Mr. Malpass appears in the
appendix.]
The Chairman. Mr. Maloney?
STATEMENT OF ANDREW K. MALONEY, NOMINATED TO BE DEPUTY UNDER
SECRETARY FOR LEGISLATIVE AFFAIRS, DEPARTMENT OF THE TREASURY,
WASHINGTON, DC
Mr. Maloney. Chairman Hatch, Ranking Member Wyden, and
distinguished members of the Senate Finance Committee, it is an
honor to appear before you today. I am humbled to have been
recommended by the Treasury Secretary, Steven Mnuchin, and
nominated by the President of the United States to serve as
Assistant Secretary for Legislative Affairs at the Treasury
Department. I have a deep respect for the history of the
Department and fully appreciate the footsteps that I must
follow in to uphold the traditions and mission of this
position.
I would like to take a moment to thank my family who are
here today: first, my wife, Dr. Sabra Klein, who is an
accomplished professor at Johns Hopkins University; our two
children, Madeline and Stella; my father, a former Marine,
Kerry Maloney, and my mother, Geri Maloney, whose first job was
as a staffer to Congressman Sonny Montgomery on the Hill, here;
my father-in-law, Colonel Peter Klein; and also my sister,
Elise Kowalski, her husband, Ben, and their two children, Sam
and Oliver.
I would also like to thank all of the members and staff
whom I have been able to visit with over the past couple of
weeks. I enjoyed meeting with you and hearing your perspective.
If confirmed, I look forward to continuing the dialogue that we
have started, and my door will always be open.
I grew up on a small farm in Rockingham County, VA. We
raised poultry, sheep, and some beef cows. I was active in 4-H
and the Future Farmers of America. Since my mother worked on
Capitol Hill and my uncle was convention coordinator to Hubert
Humphrey's presidential campaign, politics was always a
discussion at our dinner table. I caught the bug early in life
and wanted to work in government.
My first opportunity to work on Capitol Hill was a college
internship, working in the press office of Virginia Senator
John Warner. My job was to look through hard copies of local
newspapers for articles where he was mentioned, cut each
article out, tape it on another piece of paper, photocopy and
distribute it as part of the press clippings. I might add that
the Internet has replaced that role.
Upon completing college, I worked as a legislative aide in
the Virginia General Assembly, gaining a firsthand view of how
States must address budget and economic concerns. Upon
completion of the General Assembly, I returned to Washington,
DC to pursue law school and work on Capitol Hill. I was able to
spend a summer working for Hon. Laurence J. Whalen at the U.S.
Tax Court. Following law school, I was very fortunate to spend
5 years working in the House of Representatives. I oversaw and
managed legislative and State staff, reinforcing the importance
of responding to the needs of constituents. I worked on a range
of issues that included energy, financial services, tax, trade,
appropriations, and transportation. I also served in House
leadership and keenly understand the legislative dynamic
between leadership and the committees and the need to work with
colleagues in a bipartisan manner.
I left Capitol Hill in 2002 to join a government affairs
firm. During my tenure at the firm, I was asked to become the
chief executive officer. In addition to providing strategic
counsel to the firm clients, I was responsible for managing the
day-to-day business of the company, coordinating with our
parent company, and handling marketing and staffing decisions.
I was very proud to have helped build one of the most
successful bipartisan firms. After leaving the firm, I joined
an American energy company, where I created an integrated
global external affairs function, focusing on the intersection
of public policy, public affairs, and economic conditions.
As you know, the Treasury Department helps preserve and
promote financial stability and security here in the U.S. and
around the world. The Department has one of the most important
functions in our government and is the premier financial
institution in the world. I fully understand the enormity of
the role of the Office of Legislative Affairs and the
importance of the relationship this office has with Congress.
If confirmed, I commit to being responsive to you and your
staff. I will strive to ensure your views are communicated
within the Department and pledge to maintain an open line of
communication between the Department and Congress.
Again, I would like to thank Chairman Hatch, the ranking
member, the Senators, and the staff for your consideration. I
look forward to responding to any questions that you may have.
The Chairman. Well, thank you so much.
[The prepared statement of Mr. Maloney appears in the
appendix.]
The Chairman. Mr. McIntosh, we will turn to you.
STATEMENT OF BRENT JAMES McINTOSH, NOMINATED TO BE GENERAL
COUNSEL, DEPARTMENT OF THE TREASURY, WASHINGTON, DC
Mr. McIntosh. Chairman Hatch, Ranking Member Wyden, members
of the committee, thank you for the opportunity to appear
before you today. I also thank Senator Portman for that
generous introduction.
I am honored to be the President's nominee to be General
Counsel for the Department of the Treasury, and I am grateful
to the Secretary for his confidence in recommending me for the
position.
I would like to take a moment to introduce the members of
my family who are here today, starting with my wonderful wife
Laura, without whom there is no chance I would be here; my
three terrific kids: Mia, age 13; Rhys, age 10; and Ethan, age
7--whom I would note had essentially memorized the musical
``Hamilton'' before becoming aware that I was in consideration
for a position at the Treasury--my parents, Carl and Shirley
McIntosh, who have driven in from Williamston, MI for this
hearing, and who have been represented ably by Senator Stabenow
since she was an Ingham County commissioner in the 1970s. And I
would acknowledge the absence of my sister, Beth Eiler, who
wanted to be here today but is administering 8th grade science
exams at Sexton High School in Lansing, MI.
Since being nominated, I have had the opportunity to meet
with several of you and your staffs, and I appreciate the
courtesies you afforded me in hosting those meetings. From my
prior Federal service, I am acutely aware of the need for a
close working relationship with the Congress, and I look
forward to working with you and your staffs to foster such a
relationship, should I be confirmed.
The challenges that the Treasury confronts, and the
responsibilities of its chief legal officer in helping to
navigate them, are daunting in both breadth and complexity. In
the past 2 decades, I have twice watched the Treasury--
including in particular the General Counsel's office--grapple
with pressing, emergent issues of grave global consequence.
Having been in Manhattan's financial district on September 11,
2001, I saw with my own eyes the horrors that terrorism wreaked
that day.
In the years following, I watched with deep gratitude the
heroic work of Treasury personnel to bring to bear powerful
financial tools to thwart those who would do us harm. And while
serving on the White House staff from 2006 to 2009, I watched
the tireless work of Treasury personnel to address urgent
issues in the American economy.
In both cases, the Treasury's dedicated, experienced, and
immensely talented legal staff was central to the Department's
efforts. It has long been apparent to me that it would be the
honor of a lifetime to work among and lead that staff.
One prior Treasury General Counsel said at his confirmation
hearing that ``the legal issues facing the Treasury today are
among the most critical in government.'' That statement has
often been true, and I believe it is true today. Treasury has a
crucial role to play in safeguarding the dynamism of the U.S.
economy, in ensuring a fair and efficient tax system, in
advancing this Nation's interests in the international arena in
the world, and in bolstering our national security.
I pledge that if confirmed, I will bring to my share of
these tasks a commitment to rigorous legal analysis, zeal in
the pursuit of the interests of the American people, and
steadfast dedication to upholding the rule of law. I would
strive to bring an unstinting devotion to duty inspired by the
work ethic of my parents, both raised on farms in the thumb of
Michigan. I would be guided at all times by the obligation of
fidelity to the Constitution. And I would keep ever in mind the
fundamental truth, articulated by a mentor of mine, that the
demands of honor have special application to government
service.
Thank you for the opportunity to appear today. I look
forward to your questions.
The Chairman. Well, thank you so much.
[The prepared statement of Mr. McIntosh appears in the
appendix.]
The Chairman. All four of you are just excellent, as far as
I am concerned.
I am going to defer my questioning to Senator Grassley, let
him go first, and then we will go to our Senator from
Pennsylvania.
Senator Grassley?
Senator Grassley. Mr. Chairman, I thank you for doing that.
Congratulations to all of you for your important positions.
I hope I can get one question to each of you. If I cannot, I
will submit what I do not ask for answer in writing.
I am going to start with Mr. McIntosh. As you may be aware,
I have long been an advocate for whistleblowers. In 2006, I was
successful in enacting legislation to enhance the IRS
whistleblower program.
That program has been one of the most effective programs in
addressing tax evasion, leading to the recovery of more than
$3.4 billion in taxes that otherwise the IRS would have never
known about, except for whistleblowers reporting it.
However, there have been concerns that some within Treasury
and also some within IRS have resisted the whistleblower
program and may be undermining its effectiveness. One concern
is that Treasury and IRS have narrowly interpreted the
whistleblower law to the detriment of whistleblowers in several
instances.
Example: the IRS has interpreted the term ``collective
proceeds,'' which is the base for determining the amount of an
award, to exclude criminal penalties and certain other
proceeds, such as penalties assessed for undisclosed foreign
bank accounts.
My question is, should you be confirmed as General Counsel
for the Treasury, could I count on you to be supportive of the
whistleblower program and work to ensure its success? Would you
be willing to review Treasury and IRS interpretation of the
whistleblower law, including the present interpretation of
``collective proceeds''?
My question comes from just the common-sense approach that
this $3.4 billion would not have been collected if somebody had
not come forth and told about it.
Mr. McIntosh. Senator Grassley, thank you for that
question. I have long admired your leadership on whistleblower
issues. I will commit to do the things that you have asked me
to do.
Senator Grassley. Thank you. That is all I can ask at this
point, and I will try to keep in touch with you.
I now go to Mr. Hargan. In your testimony, you mentioned
your mother's work at St. Mary's Hospital in Cairo, IL. You
said that the hospital is no longer around.
You have hit upon an issue that is very important to me:
the survival of rural hospitals. Along with Senators Klobuchar
and Gardner, so it is a bipartisan bill--we call it the Rural
Emergency Acute Care Hospital, and that is REACH, R-E-A-C-H,
for short. The bill was introduced because of the alarming rate
of closures of rural hospitals in the past several years. And
of course, when a rural hospital closes, the community loses
all health-care providers in the area.
So put simply, my bill would allow critical access
hospitals that no longer have the necessary inpatient volume to
keep the doors open, to establish an emergency room, along with
other services--just as an example: dialysis, home health,
telemedicine, and outpatient. We do not dictate what they have
to do, but we give those as examples.
The center would not have inpatient, because it is about
4.5 percent inpatient use of those beds. So you see, it is a
high overhead.
With a REACH designation, these centers would need to
provide 24/7 transport of critical patients to tertiary care
centers. That would be one of the main reasons for this
legislation.
So I hope you think it is a common-sense solution. I do not
expect you to give me an answer on the bill now, but I would
hope that you would be willing to work with my office to assure
people living in rural areas, like most of Iowa, will have
access to this just-in-time medical care.
Mr. Hargan. Senator, I would be delighted to work with you
and your staff on that. Rural health is very important to me.
Senator Grassley. Okay. Thank you.
I will have to quickly ask this question to Mr. Malpass.
Over the last several years, we have seen an increase in the
amount of foreign direct investment in the United States,
specifically by China.
In general, I do not oppose direct foreign investment, when
people outside of the United States invest here and create
jobs. I generally think that is a very good thing.
However, the rise of state-owned enterprises, which operate
in many cases on behalf of their governments, has changed the
traditional foreign direct investment model. Today we read
about Chinese state-owned enterprises buying American companies
specifically to acquire technology and intellectual property.
I know others in Congress have the same concerns. So just
how do you view the rise of these state-owned enterprises in
the global economy over the last decade? And by the way, this
is in regard to beefing up the Committee on Foreign Investment,
which is in your department.
Mr. Malpass. Yes, thank you very much, Senator. That is an
important question. These are complicated issues.
So, as we think about the changing world, it is moving
quickly, and as you said, China is gathering a role. The CFIUS
process is an important one in evaluating national security
interests, and I commit to making sure that it is supervised
and staffed in a way that makes it possible to evaluate
national security concerns as they relate to foreign investment
in the United States.
Senator Grassley. Thank you.
Mr. Malpass. Thank you.
Senator Grassley. I will submit Mr. Maloney my last
question for answer in writing.
Thank you, Mr. Chairman.
The Chairman. Well, thank you, Senator.
Senator Stabenow has one question.
Senator Stabenow. Thank you, Mr. Chairman. I appreciate you
allowing me to take a moment.
I first want to thank my friend and colleague, Senator
Grassley. He and I are working together on CFIUS and issues
around food safety and food security. I want to associate
myself with your comments.
Mr. Chairman, I just had to take a moment, as we all do, in
juggling a number of things today. I appreciate you letting me
take just a moment to welcome the nominees.
When I looked at the four nominees and two of them are from
Michigan, I think that says a lot about how great our State is.
So I just wanted to have the opportunity to welcome both of
you. Public service is very important, and I am so pleased that
you are putting yourselves forward.
Brent McIntosh, I know your mom and dad are here, and your
family. It is good to see you. Williamston is not far from
where I live. So it is wonderful to have you. I know you are
very proud of your son, a highly respected attorney, most
recently at Sullivan and Cromwell. I am here today saying good
words--even though I am a Michigan State grad and you went to
the University of Michigan.
Mr. McIntosh. Thank you so much, Senator.
Senator Stabenow. I also want to welcome Mr. David Malpass,
another Michigan native. I think your family is here as well.
We thank you for your service in previous administrations, the
Reagan administration, as well as in the George H.W. Bush
administration. I appreciate your coming forward and being
willing to serve.
Thank you, Mr. Chairman.
The Chairman. Well, thank you, Senator.
We will now go to Senator Casey.
Senator Casey. Mr. Chairman, thank you very much.
Let me start by saying how much I appreciate the statements
by Chairman Hatch, Ranking Member Wyden, and Senator Grassley
regarding the responsiveness--the duty to respond that Federal
agencies have. I am grateful for that.
I am also grateful for the nominees' willingness to serve,
in some cases to serve yet again, and your families' dedication
to that service as well, because I know when you serve, they
serve along with you and sacrifice on your behalf.
I will start my questions with Mr. McIntosh, with regard to
the duties you would have as General Counsel at the Treasury
Department. I will focus specifically on requests for
information that a Senator would submit, and the question of
responding to those requests regardless of party affiliation.
Here is my question, Mr. McIntosh. As General Counsel,
would you advise Secretary Mnuchin that it is improper--
improper--to only respond to requests from Republican offices
and not requests from Democratic offices?
Mr. McIntosh. Senator, thank you for that question. It is
my view that a good working relationship with both houses of
Congress and with both sides in both Houses is an essential
aspect of service in the executive branch, and I would bring
that message and that ethic to my role as general counsel.
Senator Casey. And I appreciate that sentiment, but I need
a ``yes'' or ``no'' answer to that question.
Mr. McIntosh. Senator, I would want to look at the law
underlying the request, but I would expect that it is not
proper to simply take an off-the-table response to one side
while responding to the other.
Senator Casey. That is not a direct ``yes'' or ``no''
answer.
Mr. McIntosh. Senator, I hesitate to weigh in on a
hypothetical situation, but in a situation where I believe the
law was in favor of a response, I would tell the Secretary that
it was improper not to respond.
Senator Casey. If another situation arose where a
Republican office has received a response for information from
the Secretary but a Democratic office has not received a
response for similar information, what advice and
recommendation would you provide?
Mr. McIntosh. Senator, again, on a hypothetical situation
like that, it sounds like the sort of thing where I would want
to advise the Secretary that he ought to be responding without
regard to the partisan alignment of the Senator in question.
Senator Casey. Also, would you advise the Secretary to
discuss information in sworn testimony to the committee if he
is unable to provide the source of that information to the
committee?
Mr. McIntosh. I would be hesitant to do so. I do not know
if there are hypothetical situations in which, for sources and
methods reasons, one would want to do that with regard to
national security information, but beyond the poverty of my
imagination, I am not imagining a situation where that would be
appropriate.
Senator Casey. Let me give you the circumstance just for
context.
In January, I asked Secretary Mnuchin to provide a copy of
a number of foreclosures that OneWest Bank engaged in in my
home State of Pennsylvania--in this circumstance, while he
owned the bank. I asked for that as well as State-by-State
foreclosure data. That is part one. That was my request.
Secretary Mnuchin provided similar information to the State
of Nevada, pursuant to request by Senator Heller--in this case,
the foreclosure numbers prior to his confirmation in January.
He has yet to provide the same information to Democratic
requesters--in this case to my office and to Senator Brown of
Ohio.
So we asked for the same information. He responded to the
request of Senator Heller before confirmation and has yet to
respond to ours. I hope you would remind him, and remind his
team, that they have yet to respond.
Mr. Maloney, I also have a question for you in your
capacity as Under Secretary for Legislative Affairs. Republican
members of our committee were provided with OneWest Bank
foreclosure data 4 months ago. I followed up my verbal request
with a question for the record, where the Secretary responded,
``I have requested the additional foreclosure information.''
The question I have for you is, when could I expect to
receive the data that I requested on OneWest Bank's
foreclosures in Pennsylvania and nationally?
Mr. Maloney. Well, Senator, as you know, I am not yet
confirmed. So I am not at the Treasury Department. So I am not
familiar with the requests that you have made.
As I said in my opening statement, I am fully committed to
being open and transparent in this role and ensuring that we
respond in a timely manner and have the adequate staff to
respond in that matter. But I am not familiar with your
requests.
Senator Casey. Would it be true to say you agree with the
statement that I just made reference to with regard to Mr.
McIntosh, that if a Democratic Senator requests any
information, but especially the same information requested by a
Republican, that the Department has a duty to respond to the
Democratic request as they would the Republican request?
Mr. Maloney. It is my understanding that the Department has
been responding to both Republicans and Democrats, and I intend
to continue that tradition.
Senator Casey. Thank you very much. I will have other
questions in the next round.
The Chairman. Thank you, Senator.
Senator Cassidy?
Senator Cassidy. Mr. Malpass, this is not directly under
your stewardship, but there is an issue related to
international competition. In the context of renegotiation of
the U.S.-Norway Bilateral Tax Treatment, we asked President
Obama's Treasury Department to rectify significant unfair tax
advantage.
Background: in 2007, Norway opened the door to a tax
structure where Norwegian companies can operate in the U.S.
outer continental shelf with virtually no tax liability in
their home country. Clearly, that puts our U.S.-based companies
at a severe disadvantage in these outer continental shelf
operations.
Just to put a point on it, there are disadvantaged workers
and their families who are then laid off, and their future
diminished, because the Norwegians have an unfair tax
advantage.
In 2016, March, the Louisiana delegation requested
information from Treasury on whether this tax advantage would
be addressed in the revised U.S.-Norway Tax Treaty, and we have
yet to receive an answer.
So, I know that this is technically under the Office of Tax
Policy, but there is not even a nominee for that office yet. So
I guess my question to you is, within your ability to do so,
will you commit to assisting us in arranging a briefing from
Treasury on this matter?
Mr. Malpass. Absolutely. I would be happy to communicate
with you and see what we can do within the Department, if I am
confirmed. So I will work with you. It sounds like an important
issue, and one that should be looked into.
Senator Cassidy. On behalf of those families, thank you.
Mr. Hargan, something that will eventually have to be
addressed--looking at the work you have done in your legal
career--is anti-kickbacks, Stark laws, et cetera. There seems
to be kind of a growing recognition that as we attempt to align
incentives and providers would go to a two-sided risk, that
Stark laws may be now counterproductive. And hospitals which
traditionally have opposed reforms of Stark laws but now have
joint ventures, they seem to also recognize that this is
counterproductive. I am giving you my position, obviously.
But you have actually kind of worked on this in your legal
practice. I am just trying to get your thoughts on that issue.
Mr. Hargan. Thank you, Senator. In the position that I am
going into as Deputy Secretary, I would look forward to looking
at that and helping implement anything that you all do in terms
of reforms to the system in order to achieve a goal of
coordinated care, or any of the other issues where I think
people who have commented in this area have seen, perhaps, a
conflict between the Stark law on one hand and the goals of
coordinated care, community care systems, on the other, and
other types of reform.
But obviously, this rests within the hands of Congress to
consider any changes to that law. But if I am put into the
position of Deputy Secretary, I would be happy to work to
implement those laws within the Department.
Senator Cassidy. Now clearly, you have kind of a granular
understanding of the issue, I presume, just because you have
been involved in that. Would you give recommendations if, in
the theoretical, we were to undertake--and with my chairman up
there and his staff taking notes--a granular way to sort of
address this?
Mr. Hargan. That is what I do in my private life, is work
at a very great degree of granularity, and I would look forward
to applying that same focus at HHS and work with you all and
with the Department to make sure that that is well done.
Senator Cassidy. Thank you.
Mr. Chairman, I yield back.
The Chairman. Well, thank you so much.
Senator Cantwell?
Senator Cantwell. Thank you, Mr. Chairman.
Mr. Hargan, continuing on health care--I read some of your
comments. I wondered if there were things in the Affordable
Care Act that you think were working and that we should keep?
Mr. Hargan. Well, Senator, obviously that is the subject of
a lot of dispute here on Capitol Hill. I know that you all
have--there is a lot of policy----
Senator Cantwell. My colleague from Louisiana has said
there are things that are working, and that the States should
keep them if they want to.
Mr. Hargan. There have certainly been some things in the
health-care landscape that have changed. I am not particularly
a policy person in this area to opine about the influence of
the Affordable Care Act and all the changes in the health-care
landscape that have taken place.
Senator Cantwell. Okay. Let us say, for example, you can
have clout. I know you have kind of disparaged moving further
with expansion of the children's health care program as more
government. But sometimes, when bundling up individuals, like
we have been able to do in some of these markets--New York,
Minnesota--you can get leverage by bundling up a large
population and serving them up to the providers.
Obviously, you may get more cost-effective for them. The
consumer gets clout because, if they are an individual not with
a major employer, it gets them clout. They can be bundled up
and get clout that way.
Do you think that is a good idea?
Mr. Hargan. Well, you can always achieve efficiencies
within the health-care system by allowing people to work
together in the system. It is always an issue about exactly how
you all might reform this system in order to allow that to take
place most efficiently and well within the confines that we
have within the current system.
Senator Cantwell. So I will get you more specifics on that,
and maybe you can give me a little more detailed answer.
The same on rebalancing--we have been very big proponents
of pushing States to establish a focus on community-based care
versus nursing home care because it can save huge dollars for
individual States and for individual families.
Is that a concept that you think might be something that
you could support?
Mr. Hargan. I think that that is an issue where both
patients and the physical health of the programs pull in the
same direction. Moving people from institutional care to
community-based and home-based care is a place where it seems
like the market is going. And I think that both patients and
the programs themselves might be well-served by moving more in
that direction.
Senator Cantwell. And if we could encourage them to do so,
it would be good?
Mr. Hargan. Encouraging people to move into their
communities, I think that--from what I have seen--I am not a
physician in this area----
Senator Cantwell. We will get you some more on that too,
because we think these are initiatives that are saving for
consumers and for institutions and for government. So we think
it is a win for everyone.
If I could, Mr. McIntosh, I know Secretary Mnuchin has been
before the committee talking about a 21st-century Glass-
Steagall proposal. Do you know--he is doing this regulatory
review as part of the operations. Is he anticipating including
a proposal in there?
Mr. McIntosh. Senator, I appreciate the question. As I am
not in the Department now, I am not privy to the deliberations
regarding the regulatory reform proposals the Secretary intends
to propose, and I do not know whether 21st-century Glass-
Steagall would be among them.
Senator Cantwell. Do you think it is a good idea?
Mr. McIntosh. Senator, I do not pretend to have an
expertise on what policies this body ought to adopt in that
space.
Senator Cantwell. Thank you, Mr. Chairman.
The Chairman. Well, thank you.
Senator Casey has a couple more questions.
Senator Casey. Mr. Chairman, I know we are ready to wrap
up, but I just have a question for Mr. Hargan.
We have a dispute with HHS about responsiveness to letters.
Let me just quickly ask you this question. If you are
confirmed, do you commit to respond in a timely manner to all
congressional inquiries and requests for information from
members of Congress, including requests from members in the
minority?
Mr. Hargan. I do commit.
Senator Casey. Thank you. Mr. Chairman, the last thing I
will do is, I would ask consent to enter into the record a
letter I sent to Secretary Mnuchin dated May 25, 2017,
regarding these requests to the Treasury.
The Chairman. Without objection, it will be in the record.
[The letter appears in the appendix on p. 23.]
Senator Casey. Thank you, Mr. Chairman.
The Chairman. Well, thank you.
I want to say that I have been around here a long time, and
I think all four of you, each of you, is an excellent pick by
this administration. I look forward to working with you and
helping you as much as we possibly can on this committee.
I am proud that you are willing to serve. We welcome your
families here, your children, other members of your family, and
we just want to thank you for your willingness to serve. It is
very difficult sometimes to serve in these positions, and
sometimes you get no credit for it at all. All you get is
abuse, but the fact of the matter is, you are willing to do it.
And each of you has special expertise in your particular areas
that I think will benefit this country greatly.
So with that, then, we will recess until further notice.
Thank you.
[Whereupon, at 11:03 a.m., the hearing was concluded.]
A P P E N D I X
Additional Material Submitted for the Record
----------
Letter Submitted by Hon. Robert P. Casey, Jr.
United States Senate
WASHINGTON, DC 20510
May 25, 2017
Robert P. Casey, Jr.
Pennsylvania
COMMITTEES
Agriculture, Nutrition, and Forestry
Finance
Health, Education, Labor, and Pensions
Special Committee on Aging
Joint Economic Committee
Dear Secretary Mnuchin:
In January, I submitted a question for the record asking you provide a
copy of the letter to HUD you referenced in your sworn testimony with
regards to reverse mortgages. In addition, I asked you provide State
and national foreclosure data from OneWest Bank. You will recall, you
provided this information to Senator Heller, a Republican member of
this committee, prior to your confirmation, but have as of yet failed
to provide this information to Democratic requesters.
In response to my January 25, 2017 question for the record, you stated,
``I have requested the additional [foreclosure] information as well as
the referenced [HUD] letter.''
The full question is below.
1. Response to Casey Question 23 and 23 a-d: Mr. Mnuchin, in addition
to your providing the total number of foreclosures executed by OneWest
bank, please provide the following sub-data:
a. The foreclosure rate on mortgages owned by OneWest;
b. The foreclosure rate on mortgages serviced by OneWest;
c. The modification rate of mortgages owned by OneWest; and
d. The modification rate of mortgages serviced by OneWest.
You did not provide a response to the question; further, you provided
assurances when we met that you would provide national foreclosure
data, and assurances to my staff you would provide a copy of the letter
referenced in your testimony to the Committee. Please do so.
Amended Response:
I have requested the additional information as well as the referenced
letter.
In accordance with your stated response:
Please provide the committee by COB Friday a copy of your
correspondence requesting the letter on reverse mortgages.
Please provide the committee by COB Friday a copy of your
correspondence requesting State and national foreclosure information.
Sincerely,
Robert P. Casey, Jr.
United States Senator
______
Prepared Statement of Eric D. Hargan, Nominated to be Deputy Secretary,
Department of Health and Human Services
Thank you, Governor Thompson, for that warm introduction. And also,
thank you to the many dedicated public servants who have loaned their
talents to such great effect at HHS over the years, such as Secretary
Leavitt and Deputy Secretary Azar during my previous time at HHS. I
learned so much from them. Thank you also to Chairman Hatch, Ranking
Member Wyden, and all of the members of the committee, many of whom I
have already visited during this process. It has been a tremendous
honor to meet with you, and I look forward, if I have the privilege to
receive the approval of the Senate, to meet with and work with all of
you on future challenges and opportunities at HHS.
I would like to start by acknowledging some of the members of my
family who have joined me here today: my wife Emily, my sons Thomas and
Joe, and my sister Jody, who has come in from Paducah, Kentucky. Thank
you all for being here with me today!
Now I think it would be informative for me to give you some of my
personal background. I am currently an attorney, most recently with a
law firm in its Chicago office, specializing in health law. Before
returning to the private practice of law, I served at HHS under the
George W. Bush administration, as Deputy General Counsel, then as Chief
of Staff to the Deputy Secretary, and finally as Acting Deputy
Secretary. My time at HHS serving in the position of Deputy Secretary
has provided me with valuable experience that will help inform my work
in the same role in this administration. I believe that my years at HHS
will help me with understanding HHS and helping it fulfill the unique
role the Department has to play in ensuring that the many programs
Congress has committed to it are carried out well and faithfully, for
the benefit of the millions of Americans who rely on them.
I understand this role, coming to it from my own personal
background. Although I live in Chicagoland now, I am originally from
deep southern Illinois, from a farm near a small town called Mounds,
population 810 now I believe. My father worked at a local DOE plant as
a technician, and my mother was an X-ray tech. My father was also a
Korean War veteran having served as a sergeant in the Air Force as a
mechanic. He was also, on and off, a local politician, as county
commissioner in Pulaski County, VFW commander in Mounds, and he also
served as a union shop steward in the local plant.
My mother, originally from a small Finnish community near Duluth,
worked at our local health-care facility for 58 years prior to passing
away a few years ago. I say ``health-care facility'' because she
started at what was then St. Mary's Hospital in Cairo, Illinois. This
hospital underwent the same evolution that has happened to many small
town hospitals throughout the country, as rural areas and their health-
care systems have suffered so much in the past decades. St. Mary's, as
is the unfortunate case with many rural hospitals, is no longer around,
although the good local people still continue to provide care to the
community.
After leaving high school, I attended Harvard College and then
Columbia Law School, followed by years of private practice. And all
along, I have tried to carry on the family tradition of public service
not only by joining President Bush's HHS, but also serving as Governor
Rauner's co-chair for his health care and human services transition in
2014 and 2015, and then volunteering for the State of Illinois on its
State Health Improvement Planning Council and the State Innovation
Model Workgroup. I also serve my community as a precinct committeeman
for my township, and help as much as I can with our parish and school
at St. Isaac's.
So, between my father's example of public service and my mother's
longtime work at our local hospital, in some ways combining public
service and health care seems like fate to me. I am proud that
President Trump has shown confidence in me to nominate me to return to
my former position at HHS. And in Secretary Price, I see a leader with
an ideal background: a physician with experience as a provider in HHS's
programs, as well as having been a leading legislator on Capitol Hill.
I am hopeful that my experience as an attorney and administrator will
serve as a good complement to him, and enable us and the Department to
achieve our mission on behalf of the American people.
People have asked me: why go back in? But I cannot imagine, if
given the opportunity by you, that I could turn away. The challenges
are so great, whether in public health, in health-care finance, in
facilitating innovation in health care and in the administration of
human services, that I cannot imagine not wanting to participate, and
to lend to the government both my past experience at HHS, as well as
the fruit of my years of work in the health-care sector since then, to
help as much as I can.
At HHS, I found in my previous tenure a congenial group of public
servants, who are dedicated to fulfilling their given tasks. There is a
level of patriotism and good attitude that I think many outside would
find surprising, given the level of rhetoric we often see. Certainly,
in a reversal of many people's experiences, I walked out of a place of
employment, HHS, less cynical than I went in.
This does not mean that HHS does not have any challenges that need
to be addressed. And in the Deputy Secretary position, as the chief
operating officer of the Department, you see the issues and details up
close. The office helps implement the laws that the Department has been
given, coordinates the agencies and divisions, and ensures the
Department runs efficiently. For so large an enterprise, this is a
daunting goal. But I believe with good will and the assistance of the
staff at HHS, and the Congress, that this is not an impossible task. We
cannot solve everything at once, but we can, I believe, make a real and
lasting difference in Americans' lives and health, and that in itself
would be a worthy goal. Thank you.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Eric D. Hargan.
2. Position to which nominated: Deputy Secretary of the Department of
Health and Human Services.
3. Date of nomination: April 4, 2017.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: June 3, 1968, Cape Girardeau, Missouri.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list secondary and higher education institutions, dates
attended, degree received, and date degree granted): Meridian High
School, 1982-1986, high school degree; Harvard University, 1986-1990,
BA cum laude in philosophy, June 1990; Columbia University Law School,
1990-1993, J.D., May 1993.
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment):
Title: Assistant
Employer: Law Offices of Gloria E. Thurston
Location: Pulaski, Illinois
Dates: Summer 1990
Description: Assisted a solo law practitioner with various
administrative tasks.
Title: Associate, Corporate Department
Employer: Skadden, Arps, Slate, Meagher, and Flom
Location: Chicago, Illinois; Hong Kong; Jakarta, Indonesia
Dates: 1993-1996, Summer 1992
Description: Summer Associate, Summer 1992. Associate attorney in
Corporate Department. Sole representative of the firm in its Jakarta,
Indonesia workspace, based out of the Hong Kong office, 1996.
Title: Associate and Partner, Corporate Department
Employer: Winston and Strawn
Location: Chicago, Illinois
Dates: 1997-2003
Description: Attorney in Chicago office, working primarily on
mergers and acquisitions, securities, and corporate finance. Elected
partner in 2001.
Title: Deputy General Counsel
Employer: U.S. Department of Health and Human Services
Location: Washington, DC
Dates: 2003-2005
Description: Assisting the General Counsel in managing a team of
over 400 attorneys advising HHS agencies on a wide range of litigation,
regulatory, and contract matters.
Title: Principal Associate Deputy Secretary
Employer: U.S. Department of Health and Human Services
Location: Washington, DC
Dates: 2005-2007
Description: Served as principal deputy and chief of staff to the
Deputy Secretary, then as Acting Deputy Secretary of the Department.
Title: Partner, Health Law Department
Employer: McDermott, Will, and Emery
Location: Chicago, Illinois
Dates: 2008-2010
Description: Work concentrated in health-care transactional and
regulatory areas.
Title: Shareholder, Health, and FDA Business Group
Employer: Greenberg Traurig, LLP
Location: Chicago, Illinois
Dates: 2010-2017
Description: Work focused on transactions, health-care regulations
and government relations. Within the transactional area, concentrated
on mergers and acquisitions and corporate finance in the health-care
sector.
Title: Adjunct Professor of Law
Employer: Loyola University Law School
Location: Chicago, Illinois
Dates: 2012-2017
Description: Taught a course on administrative law and health-care
regulations.
10. Government experience (list any advisory, consultative, honorary,
or other part-time service or positions with Federal, State or local
governments, other than those listed above):
Co-Chair and Convener of Illinois Governor Rauner's Healthcare and
Human Services Transition Committee, 2015-2016.
Member, Illinois State Health Improvement Plan Planning Council,
2015-2016.
Member, Illinois State Innovation Model (SIM) Workgroup, 2015-
2016.
11. Business relationships (list all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, other
business enterprise, or educational or other institution): Shareholder,
Greenberg Traurig, LLP.
12. Memberships (list all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable, and
other organizations):
Member, Executive Board, Chicago Lawyers Chapter, Federalist
Society.
Policy Fellow, American Conservative Union Foundation.
Oblate, Order of St. Benedict.
Knight, Order of Malta, Federal Association.
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate.
Precinct Committeeman, Downers Grove Township Republican
Organization.
b. List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years.
Volunteer, 72-Hour GOTV Strike Force, Bush-Cheney 2004.
Volunteer, GOTV team, Republican National Committee, 2006.
Volunteer, GOTV team, Republican National Committee, 2008.
Member, Finance Committee, Bill Brady for Governor, 2010.
Delegate, Illinois State Republican Convention, 2012.
Delegate, Illinois State Republican Convention, 2016.
Precinct Committeeman, Downers Grove Township Republican
Organization.
c. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $50 or more for the past 10 years.
McCain Victory Committee, 9/29/2008, $2,300.00
Oklahoma Leadership Council, 10/26/2008, $500.00.
McCain-Palin Victory 2008, 10/27/2008, $1,000.00.
Kirk for Senate, 12/14/2009, $1,000.00.
Bill Brady for Governor, 2010, approx. $8,000.00.
Bobby Schilling for Congress, 10/16/2010 $350.00.
Perry for President, 9/30/2011, $2,500.00.
Dold for Congress, 11/22/2011, $250.00.
Romney Victory, Inc., 9/6/2012, $10,000.00.
Tommy Thompson for Senate, 10/31/2012, $500.00.
Duffy for Wisconsin, 11/3/2012, $250.00.
Ted Cruz for Senate, 5/30/2013, $1,000.00.
George P. Bush for Texas Land Commissioner, 2014, $1,000.00.
Downers Grove Township Republican Organization, 2014, $1,000.00.
Downers Grove Township Republican Organization, 2015, $1,000.00.
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement):
Harvard College Scholarship, Harvard University.
Dean's List, Harvard University.
Eliot Thesis Prize, Harvard University.
Senior Editor, Columbia Law Review.
Certificate of Recognition in International Law, Parker School of
Foreign and Comparative Law, Columbia University.
Recipient, HHS Secretary's Award for Distinguished Service.
Member, Winning Team, Global M&A Network's 2012 Turnaround Atlas
Award for ``Private Equity Turnaround of the Year'' for the Chapter 11
reorganization and acquisition of American Laser Skincare LLC.
Member, Winning Team, M&A Advisor Awards, ``Healthcare and Life
Sciences Deal of the Year (from $10mm to $500mm)'' for the Chapter 11
sale of ATLS Acquisition, LLC, dba Liberty Medical Supply, Inc., 2015.
Member, Winning Team, Global M&A Network's Turnaround Atlas
Awards, ``Turnaround of the Year--Small Markets'' for the restructuring
and sale of ATLS Acquisition, LLC (dba Liberty Medical), 2015.
15. Published writings (list the titles, publishers, and dates of all
books, articles, reports, or other published materials you have
written):
``Medical Tourism and India,'' India Law News, Spring/Early Summer
2012.
``Managed Care,'' Hospital Legal Forms, Checklists, and
Guidelines, Aspen Publishers, 2012.
``The Internet, Information Technology, and the FDA,'' in Inside
the Minds: Recent Development in Food and Drug Laws, Aspatore Books,
2012.
``Compliance,'' Hospital Legal Forms, Checklists, and Guidelines,
Aspen Publishers.
``A Realistic Approach to Food Safety Regulation,'' Food Quality,
June/July 2010.
``Are REMS Doing More Damage than Good?'' FDLI's Update magazine,
March/April 2010.
``Quality Ingredients From Across the Ocean,'' QA magazine, March/
April 2010.
``The FDA Shifts From Food Safety to Public Safety,'' Food
Quality, December/January 2010.
``Antibribery Crackdown Transforms Business Practices in China,''
MX magazine, December 2009.
``Faking It,'' BioPharm, December 1, 2009.
``Safer Chinese Food,'' Food Product Design, November 10, 2009.
``Institutional Conflicts of Interest: Identifying and Managing
Them in Life Sciences,'' FDLI's Update magazine, May/June 2008.
``Vaccine Law 101,'' Journal of Law, Medicine, and Ethics 35:72-
76, 2007.
``The Sovereignty Implications of Two Recent Supreme Court
Decisions,'' Federalist Society, 2003.
16. Speeches (list all formal speeches you have delivered during the
past 5 years which are on topics relevant to the position for which you
have been nominated):
``FDA Master Class: Uncovering Device Regulatory Trends and
Hurdles to Expedite Speed to Market,'' 4th Annual Medical Device
Product Management Conference, Chicago, IL, October 27, 2016.
``Regulatory Considerations, Clinical Trials, and the FDA,''
American College of Surgeons Clinical Congress, Washington, DC, October
19, 2016.
``Perspectives on Biosimilars,'' Biosimilars and Biobetters USA
Conference, Iselin, New Jersey, April 7, 2014.
``The Affordable Care Act: What Employers Need to Know,'' Water
Quality Association--Aquatech USA Conference, Orlando, FL, March 18,
2014.
``Affordable Care Act: Update,'' Lexvid Presentation, March 5,
2014.
``Health Insurance Exchanges: What Employers Need to Know,''
National Business Institute, Chicago, IL, December 17, 2013.
``W-2 Reporting Requirements Under the Affordable Care Act,''
National Business Institute, Chicago, IL, December 17, 2013.
``Drugs and Biologics: Labeling,'' FDA Book Camp, American
Conference Institutes, New York, NY, March 19, 2013.
``Search Engines, Medical Apps, and the FDA,'' Health Information
and Technology Group Annual Luncheon, AHLA Annual Conference, Chicago,
IL, June 26, 2012.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
I had the privilege to serve the Department previously as Acting
Deputy Secretary for a period, which served as preparation for serving
in this same position. Prior to serving in that capacity, I served HHS
as Principal Associate Deputy Secretary, acting as chief of staff to
the Deputy Secretary. Prior to that, I served HHS as Deputy General
Counsel, which, together with the other positions, enabled me to
understand many separate parts of the Department and how they work
together to achieve the goals set for them.
More recently, I served as a volunteer member of the State of
Illinois' State Health Improvement Plan Planning Council and its State
Improvement Model Workgroup, enabling me to see more closely how the
programs administered by HHS affect its State partners, and how the
States implement their own programs.
Finally, I have worked as a health-care attorney in the private
sector for over 9 years since leaving HHS, which enables me to
understand better how HHS interacts and works with the private sector
through many of its programs. In all of these ways, whether through
experience at HHS in this same role of Deputy Secretary, in other
offices at HHS, in working with the State of Illinois, or through my
experience as a private-sector health-care attorney, I believe that I
could bring my experience to bear in helping HHS implement its programs
and fulfill its responsibilities to the American people.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections with your present employers,
business firms, associations, or organizations if you are confirmed by
the Senate? If not, provide details.
Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
None.
2. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
None, except routine representation of clients in the health-care
sector.
3. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy. Activities
performed as an employee of the Federal Government need not be listed.
I served as the Treasurer of the Coalition to Protect Patient
Rights, an organization which sought to prevent passage of the
Affordable Care Act in 2009-2010. I did not engage in any public duties
for the organization.
I was registered as a lobbyist for Aquadvantage from 2008 to 2010.
4. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Provide the committee with two copies of any trust or other
agreements.)
I am signing an ethics agreement prepared for and reviewed by the
Office of Government Ethics. Copies have been provided.
5. Two copies of written opinions should be provided directly to the
committee by the designated agency ethics officer of the agency to
which you have been nominated and by the Office of Government Ethics
concerning potential conflicts of interest or any legal impediments to
your serving in this position.
Copies have been provided.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency,
professional association, disciplinary committee, or other professional
group? If so, provide details.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to Eric D. Hargan
Questions Submitted by Hon. Orrin G. Hatch
Question. The Deputy Secretary role at the Department of Health and
Human Services (HHS) has often been compared to that of a train
conductor as the job is primarily to keep the trains running and make
sure all of the programs are on track. HHS is a massive department,
covering a large range of issues and programs. Can you describe what in
your history has helped prepare you to help lead such a complex
department?
Answer. I am currently an attorney, specializing in health law.
Before returning to the private practice of law, I served at HHS in the
George W. Bush administration, as Deputy General Counsel, then as Chief
of Staff to the Deputy Secretary as Principle Associate Deputy
Secretary, and finally as Acting Deputy Secretary. My time at HHS
serving in the position of Deputy Secretary has provided me with
valuable experience that will help inform my work in the same role in
this administration. I believe that my prior years at HHS will help me
with understanding HHS and helping it fulfill the unique role the
Department has to play in ensuring that the many programs Congress has
committed to it are carried out well and faithfully, for the benefit of
the millions of Americans who rely on them.
Question. One of the most critical parts of your role as Deputy
Secretary will be ensuring adequate oversight over the programs that
comprise HHS's trillion dollar plus budget. What plans do you have to
continue current oversight efforts ongoing at HHS? How do you propose
to work with Congress on that?
Answer. If confirmed, I will faithfully implement the laws written
by Congress and the regulations issued by the Department. It is
exceptionally important that the different branches of HHS coordinate
their enforcement of final rules. To facilitate this, I will implement
standards and procedures that establish clear lines of communication
between staff divisions and operating divisions and require their
routine input on implementation. If a member of Congress contacts the
Department with issues or concerns about any HHS program, I promise
that each instance will be a top priority. The work of Congress and its
staff is valuable in identifying and solving problems, and I look
forward to working closely with the Congress in the years to come.
Question. In 2014, the GAO reported that some $60 billion in
taxpayer money, or more than 10 percent of Medicare's total budget, was
lost to fraud, waste, abuse, and improper payments. A GAO report in
2011 concluded that Medicaid had $21.9 billion in improper payments. Do
you have any thoughts on steps you think should be taken to address the
multi-billion-dollar problem of waste, fraud, and abuse in these
programs?
Answer. I am committed to working with all government agencies and
the Congress to ensure that taxpayer dollars are better safeguarded and
that scarce resources go to those who are both truly in need of them
and legally eligible for assistance. The fiscal year (FY) 2018 budget
strengthens the integrity and sustainability of Medicare and Medicaid
by investing in activities that prevent fraud, waste, and abuse and
promote quality and efficient health care. For FY 2018, the budget
assumes $2.1 billion in total mandatory and discretionary investments
in the Health Care Fraud and Abuse Control program.
Recent investments in Health Care Fraud and Abuse Control have
allowed for the expansion of fraud and abuse prevention efforts and led
to a shift away from the ``pay-and-chase'' model toward preventing
fraud, waste, and abuse on the front end. The Health Care Fraud and
Abuse Control investment also supports efforts to reduce the Medicare
and Medicaid improper payment rates, while implementing new processes
to reduce provider burden. Program integrity returns on investment are
measured by program area and separately reported by activity type.
There are three key ways in which returns from program integrity
activities are described. First, programs supported by Health Care
Fraud and Abuse Control Program mandatory funds have a proven record of
returning more money to the Medicare trust funds than the dollars
spent. The most recent estimate of the Medicare Integrity Program
return on investment is $12 to $1, and the Medicare Integrity Program
has recently yielded a consistent return of over $10 billion in savings
annually.
Second, the 3-year rolling average return on investment for Health
Care Fraud and Abuse Control law enforcement activities is $5 to $1. In
FY 2016 alone, $3.3 billion was recovered, including $1.7 billion
returned to the Medicare trust funds and $235.2 million in Federal
Medicaid recoveries returned to the Treasury.
Third, CMS actuaries conservatively project that for every new
dollar spent by HHS to combat health-care fraud, about $2 is saved or
avoided.
Question. Mr. Hargan, we are living in an aging society, and as
time goes on we will need more qualified doctors, nurses, and other
health-care providers to meet the increased medical needs of this older
population. What thoughts do you have into how public policy can
encourage an increase in the number of new doctors, nurses, and other
health-care providers entering into and remaining in the medical
profession?
Answer. Workforce issues are a major challenge in health care. We
must work to expand career options and paths for all health-care
professionals. It is critical that we as a Nation make sure that every
single individual has access to the kind of health care that they need.
If confirmed, I look forward to working closely with you and the other
members of Congress to ensure that the health-care workforce is
adequately, if not robustly, staffed for this and future generations.
______
Questions Submitted by Hon. John Thune
Question. As I've raised with Secretary Price and the Obama
administration previously, I have serious and continued concerns about
the state of the Indian Health Service. In 2010, an administrative
action plan was established after systemic problems were uncovered in
South Dakota. Similar issues arose in 2015, and those issues continue
to surface, even though two IHS facilities in South Dakota have entered
into historic Systems Improvement Agreements with the Centers for
Medicare and Medicaid Services (CMS). It has now been over a year since
entering into these agreements, but CMS continues to find serious
deficiencies at both facilities. In fact, the Pine Ridge emergency
department is currently in Immediate Jeopardy Status after a recent
unannounced site visit from CMS. This places the community in danger of
losing their emergency department services and again proves that IHS is
not delivering quality care. Over the years, IHS has provided responses
of positive change and improvement when I have asked for progress
updates, and yet these reports never match up to what I hear from
tribal members who are receiving their care from IHS. What is the
Department's plan to ensure that meaningful and long term action is
taking place to correct these problems?
Answer. I am not familiar with the specifics of the Pine Ridge
Systems Improvement Agreement but am aware of the unique challenges
facing Indian country, and specifically the Great Plains Area. During
my previous tenure at HHS, I worked on many Indian Health Service
issues, and if confirmed, I look forward to working with Congress,
tribal partners, and health-care stakeholders to ensure access to
quality care for all patients.
Question. As I indicated to Secretary Price during his confirmation
hearing, last year Senator Barrasso and I introduced the IHS
Accountability Act to facilitate significant changes to the way things
work at IHS. Teaming up with more Senators and Representatives, we've
proposed an improved version this year, the Restoring Accountability in
the IHS Act. This bill will give HHS the flexibility to terminate
poorly performing employees, streamline the hiring process so IHS can
recruit talented medical professionals more quickly, and create
incentives so those folks will stay on the job longer. Will the
Department commit to working with us on this bill, and other reforms to
fix IHS?
Answer. During my previous tenure at HHS, I worked on many Indian
Health Service issues, and if confirmed, I look forward to working with
you to achieve our common goal of providing quality health care to all
Americans, including American Indian and Alaska Native communities.
______
Questions Submitted by Hon. Ron Wyden
food and drug administration follow-up
Question. Mr. Hargan, if you are confirmed to be Deputy Secretary,
you will have a great deal of power to determine how the Department
carries out policy.
For example, in 2007, the Food and Drug Administration was facing
criticism for not doing enough to stop illnesses caused by contaminated
vegetables. The Wall Street Journal reported at the time that you--as
Acting Deputy Secretary--led Department officials in rejecting the
FDA's plan to address the issue.
This episode demonstrates just how much power the Deputy Secretary,
as chief operating officer, has in setting policy.
Now in our meeting earlier this week, you said that the Journal's
story mischaracterized your role. Can you clarify what your role was in
that episode, and, specifically, what the article got wrong in its
reporting?
Answer. I initiated the meeting due to my concerns about our
collective approach to food safety; specifically the data collection
and tracking methodology across HHS divisions of food-borne illness
cases. During this time, there had been several notable outbreaks,
spurring the meeting, which took place primarily at my request. The
meeting was a deliberative, not decisional, effort to elicit
information about what was occurring, and what corrective courses to
initiate across FDA, CDC and other agencies with regard to food safety.
Although FDA was correctly concerned about the high level of public
criticism it was receiving, and the issue of food-borne illness was,
and remains timely and important, the agency personnel presented a
request for a significant budgetary increase at a time which was not
conducive in the fiscal calendar budget cycle. Moreover, the meeting
was not comprised of the appropriate personnel to allow for informed
decision-making of such budgetary consequence.
The statement that the plan was ``rejected'' is an overstatement,
although there were questions about certain elements of the FDA plan.
There was an exchange of views, not a blanket denial of FDA's
presentation. Indeed, although the article claims that HHS ``rejected
the FDA plan,'' it also quotes Dr. Acheson (formerly) of FDA rightly
noting that ``nothing was ruled in or out'' at the meeting. There were
no decisions expected at the meeting, and the FDA Commissioner, the FDA
chief medical officer for CFSAN, and (to my recollection) the HHS
budget chief were not at the meeting, nor were they expected to be.
Every night when we gather with our families to enjoy dinner, the
last thing any of us wants to worry about is whether the meal will harm
us. I believe, as I did in 2007, that the Nation's food safety system
should rely on prevention, intervention, and response. If confirmed, I
am committed to supporting FDA in their efforts to ensure the safety of
the American food supply and provide appropriate flexibility for
farmers and others in regulated industry.
aca/american health care act
Question. Mr. Hargan, when you were Acting Deputy Secretary during
the Bush administration, you gave several speeches noting that there
were 45 million Americans without insurance. The most recent estimates
are that there are 29 million uninsured Americans.
The percentage of Americans without health insurance has dropped
from 15% during the Bush administration to 9% at the end of the Obama
administration.
You said during our meeting this week that the Affordable Care Act
has been successful in lowering the number of uninsured Americans. Do
you stand by that by that statement?
Do you support the Republican bill that the Congressional Budget
Office says will result in 23 million Americans losing their health
insurance?
Answer. As we have seen under the ACA, having insurance coverage is
no guarantee of access to quality care. All Americans ought to have
access to quality, affordable health care. The President has made clear
his hope and plan for health-care reform. If confirmed, I look forward
to working with Congress to make certain that every single American has
access to the coverage they want for themselves and their families.
chip funding extension
Question. In FY 2016 the Children's Health Insurance Program (CHIP)
covered nearly 9 million children in families who earn too much to
qualify for Medicaid but still lack access to affordable private
coverage. While this successful, bipartisan program is permanently
authorized, current law only provides Federal funding to States through
FY 2017. Five States are expected to spend their remaining CHIP
allotments in the first quarter of the next fiscal year while 29 more
States and the District of Columbia are expected to spend their
remaining CHIP allotments by March 2018. In January, MACPAC submitted a
report to Congress advising a 5-year clean extension. The National
Governors Association (NGA) and the Bipartisan Policy Center (BPC) have
recommended similar multiyear extensions of Federal funding for CHIP.
Mr. Hargan, your record on CHIP is concerning. In your own words,
``Why should we all be concerned at the prospect of expanding SCHIP?
SCHIP is a government-subsidized insurance program. The more people it
covers, the more it crowds out free market insurance, due to the tax
payer subsidy. And the more the government controls the health-care
market, the more it has to ration.''
How will you reconcile your previous position on CHIP with your
potential future role at HHS? What do you view is your responsibility
to implement programs as directed by Congress?
Answer. If confirmed, I will faithfully implement the law as
written by Congress. Notably, the President's FY 2018 budget proposes
an additional 2-year extension of CHIP through FY 2019 and returns the
program's focus to our most vulnerable and low-income children. I look
forward to implementing a CHIP program which prioritizes our most
vulnerable and low-income children as written by Congress.
Question. Understanding that the program has been permanently
authorized, that HHS administers the program, and that there is long-
standing bipartisan congressional support for its future, how would you
direct HHS to continue implementing the program?
Answer. It is important that every child has access to high-quality
health coverage, and CHIP plays an important role in accomplishing this
objective, but there is also a need for coordinated family coverage in
the private market and employer plans, and providing States necessary
flexibility.
contraceptive mandate
Question. The Affordable Care Act requires insurance plans to cover
all FDA-
approved birth control methods. This has enormously benefitted women,
enabling more than 55 million women to access birth control without
out-of-pocket costs. As a result, women using the birth control pill
saved $1.4 billion in 2013.
On May 31st, through a leaked draft regulation, the country learned
that the U.S. Department of Health and Human Services was considering
broadening the number of employers and insurers eligible for moral or
religious exemptions from the mandate. If finalized, the rule could
leave hundreds of thousands of women with out-of-pocket costs when
seeking birth control.
If you are confirmed as Deputy Secretary of HHS, would you support
regulations or guidance widening the applicability of exemptions to the
contraceptive mandate?
How would you direct HHS to ensure that those individuals who have
access to all FDA-approved birth control methods without cost-sharing
continue to have access to such services and protections?
Answer. The mission of HHS is to protect the health and well-being
of all Americans. I take this mission seriously, and I will work with
my new colleagues to do everything in our power to support access to
quality, affordable health care for all Americans.
There is no doubt that we can ensure access to health care without
harming the personal freedoms that our Nation was founded upon--in this
case the right to the free exercise of one's religious beliefs. If
confirmed, I look forward to working together to achieve an appropriate
balance that respects all individuals.
cost-sharing reductions and competition
Question. Under the Affordable Care Act, individuals and families
with incomes 100-250% of the Federal Poverty Level (FPL) who are
eligible for the premium tax credit and enrolled in a silver plan
through an exchange are eligible for cost-sharing reductions (CSR) to
reduce their out-of-pocket costs for health services. For example, an
individual enrolled in a silver-level plan without CSR might have a
deductible of $2,400 and a primary care physician visit fee of $20.
Enrolled in a CSR plan, an eligible enrollee may have lower out-of-
pocket burdens of 2,250 and $10, respectively. In 2016, over 6.4
million people--a majority of marketplace enrollees--were enrolled in a
plan with reduced cost sharing due to CSRs.
The administration has refused to state whether it will honor this
commitment to funding CSRs. As reported by independent experts and
major insurer executives, this uncertainty has threatened the continued
participation of insurers in the marketplace. Just recently, Anthem
announced that it was withdrawing from the Ohio exchange, citing the
``lack of certainty of funding for cost sharing reduction subsidies.''
As a result, 10,500 patients in 20 counties could be left without a
clear path to affordable medical care in 2018.
Question. Would you agree that the Federal Government should honor
its financial commitment to reimburse insurers for the CSR program?
Will you commit to working, to the best of your ability, to fully fund
these subsidies, which enable affordable medical care for millions of
people?
The independent Kaiser Family Foundation has reported that a
refusal to pay these subsidies could end up costing the Federal
Government $2.3 billion, since the Federal Government will have to
compensate for these lost subsidies through additional premium tax
credits. Do you believe it is fiscally responsible to withhold these
reimbursements from insurers?
Because the administration has caused such uncertainty in the
market, consumers in bare counties where all insurers have exited the
Marketplaces may face extreme barriers to accessing affordable medical
care. What is the responsibility of HHS to these consumers?
Do you commit to encouraging insurers to offer plans to consumers
residing in bare counties? How do you plan to fulfill this commitment?
Answer. It is my understanding that there is ongoing litigation
regarding this matter, but Congress could resolve uncertainty about the
payments by passing legislation to address the current law's failed
funding structure.
We need to move in a direction where insurers offer products people
want, and give them the coverage they want so that they can get the
care they need. While Congress works to pass legislation, I will help
work to mitigate the damage being done by providing needed flexibility
to issuers to help attract healthy consumers to enroll in health
insurance coverage, improve the risk pool and, as much as possible
under the current laws, bring stability and certainty to the individual
and small group markets, while increasing the options for patients and
providers.
enforcement of regulations
Question. After a regulation is finalized and codified in the Code
of Federal Regulations (CFR), Federal agencies have the authority and
responsibility to enforce these final rules. At HHS, regulatory
enforcement requires the multiple departments within HHS to coordinate
their activities. Most notably, the HHS Office of the Inspector General
(IG) is responsible for oversight of Medicare and Medicaid. In
addition, the HHS Office of the General Counsel (OGC) supports the
development and implementation of HHS programs. Such implementation
includes enforcement activities.
How will you ensure enforcement of final rules and other regulatory
guidance at HHS?
What standards and procedures will you set to assure different
branches of HHS coordinate their enforcement of final rules?
After learning that enforcement of specific programs is
insufficient, what specific steps will you take to improve upon
enforcement of programs and activities?
In your view, what oversight issues would raise the need for public
engagement to improve enforcement?
How will you engage with the public to inform enforcement and
accountability activities of HHS programs?
If Congress draws your attention to potential gaps in program
oversight, how will you work with members of Congress to address and
close these gaps?
Answer. If confirmed, I will faithfully implement laws written by
Congress and the regulations issued by the Department. It is
exceptionally important that the different branches of HHS coordinate
their enforcement of final rules. To facilitate this, I will implement
standards and procedures that establish clear lines of communication
between departments and require their routine input on implementation.
Public engagement with HHS will be of the utmost importance. I plan to
continue making sure that publicly available resources, such as 1-800-
MEDICARE, and the HHS Inspector General Tipline are maintained and
promoted so the public can actively help us fight fraud and abuse. If a
member of Congress contacts the Department with issues or concerns
about any HHS program, I promise that each instance will be a top
priority. The work of Congress and its staff is valuable in identifying
and solving problems, and I look forward to working closely with the
Congress in the years to come.
section 1115 and 1332 waivers
Question. Section 1115 of the Social Security Act provides the U.S.
Department of Health and Human Services (HHS) Secretary with the
authority to approve demonstration projects that promote the objectives
of Medicaid and the Children's Health Insurance Program (CHIP).
Section 1332 of the Patient Protection and Affordable Care Act
(ACA) provides the Secretary with broad authority to approve waivers to
the certain ACA exchange and coverage provisions if the applications
meet four criteria: ensure that individuals get insurance coverage that
is at least as comprehensive as provided under the ACA; ensure that
insurance coverage offered to individuals is at least as affordable as
it would be under the ACA; ensure that as many people are covered as
would be under the ACA; and not increase the Federal deficit.
How will you enforce the transparency requirements for section 1115
and section 1332 waiver requests and proceedings?
Public input is a critical element of the waiver process. How will
you promote greater public awareness and input in waiver generation and
consideration at the State and Federal level?
How will you ensure that any approvals of section 1115 waivers
promote the objectives of the Medicaid statute and do not allow for
misguided policies like work requirements, lock out periods, and
onerous cost-sharing and premiums that do not align with congressional
intent?
In March, HHS Secretary Price noted that the agency would conduct a
review of existing waiver procedures to provide greater freedom for
States. To the extent such review is conducted and any changes are
considered, how will you ensure compliance with the rules and
requirements established by the Administrative Procedure Act?
Answer. At issue is whether health-care decisions are better made
in Washington or by people in their local communities. Additional State
flexibility will allow more of these decisions to be made locally,
closest to the doctors and patients with their own unique sets of needs
and challenges. Health-care decisions are best made locally. If
confirmed as Deputy Secretary, I would focus on providing States the
maximum amount of flexibility within the confines of the law to allow
health-care decisions to be made by doctors and patients where the
needs of the patients come first in accordance with the rules and
requirements established by the Administrative Procedure Act.
presidential executive order on reducing regulation
Question. On January 30th, the President signed an executive order
requiring executive departments and Federal agencies (``agencies'') to
identify and eliminate two existing regulations for every one new
regulation they issue. In addition, the heads of all agencies are
required to ensure the incremental cost of all new regulations is no
greater than zero.
The executive order requires that the repeal of existing
regulations be in accordance with the Administrative Procedure Act
(APA), which specifies notice and comment rulemaking procedures, and
other applicable law. Under the APA, agencies are required to provide
the public with notice of a proposed rulemaking and a meaningful
opportunity to comment on the rule.
If confirmed as Deputy Secretary of HHS, how will you implement
this executive order?
Answer. If confirmed, I will work aggressively to monitor and
oversee full compliance with the executive order, in accordance with
the APA and the relevant case law, and solicit input from both policy
staff and those organizations responsible for implementation. I will
look to implement additional tools, as necessary, across the Department
to achieve the requirements set in the executive order, while remaining
faithful to the mission of the Department.
Question. How will you determine which existing regulations to
repeal?
Answer. I look forward to reviewing the existing protocols within
the Department to identify opportunities to reduce barriers getting in
the way of the Department's mission which is to enhance the health and
well-being of Americans by providing for effective health and human
services and by fostering sound, sustained advances in the sciences
underlying medicine, public health, and social services.
Question. Will you require that HHS publicly identify which two
regulations it plans to repeal at the same time as the new rule is
proposed? If not, within what time frame will those two regulations be
publicly identified?
Answer. If confirmed, in accordance with the APA, I will follow the
requirements of the executive order and the guidance provided by OMB.
Question. How will you ensure that the process for repealing
existing regulations complies with the APA's notice and comment
rulemaking procedures--including providing a meaningful opportunity for
stakeholders to provide comments? Will you commit to providing a
minimum of 30 days for the comment period?
Answer. See above.
Question. Many of the new rules issued by CMS are statutorily
required annual payment updates (e.g., the Medicare Physician Fee
Schedule annual rule). Is it your understanding that the executive
order requires CMS to identify two existing regulations to repeal each
time CMS issues one of these annual payment updates?
Answer. If confirmed, I will work with HHS staff, including CMS and
OGC, to review all rules and regulations and ensure compliance with the
President's executive order and the ACA.
Question. How will you determine the incremental cost of those
statutorily required annual payment updates? How will you determine the
incremental cost of new regulations more generally?
Answer. I will work in consultation with OMB to ensure consistency
across the government and draw on the analytical and human capital
resources of the Department.
funding for the center for biologic policy evaluation
Question. On your OGE Form 278, you disclosed that you were the
President of the Center for Biologic Policy Evaluation. The Center's
website states that ``CBPE is a 501(c)(3) organization. Initial funding
was provided by Amgen Inc. in the form of an unrestricted grant.''
Amgen is a major medical biotech company with many interests before the
Department of Health and Human Services. From the organization's
publicly available filings, it appears that this contribution was made
in 2013.
What role did you play in obtaining this funding from Amgen, if
any? To what extent did you directly or indirectly communicate with
Amgen since the grant was made in 2013 concerning the Center and its
activities? Are there any other sources of funding besides Amgen for
the Center? If so, please identify those sources and your role in
securing that funding.
Answer. I played no role in obtaining this unrestricted grant
funding from Amgen. I communicated with Amgen on one matter concerning
the Center and obtaining payment from Amgen for one of CBPE's
contractors, the Tidwell Group. This was the only time I communicated
with Amgen regarding the Center.
There were no other sources of funding, to my knowledge.
finance committee member requests
Question. As discussed during your confirmation hearing, you and
other nominees were asked to ensure that you would directly respond to
requests for information by the Finance Committee or any member of the
committee. As the Deputy Secretary of Health and Human Services, you
will serve as the Department's chief operating officer.
What actions will you take to ensure that the Department itself is
responsive to requests by the committee or any member of the committee
for information?
Answer. If confirmed, I will make it a top priority to ensure that
the Office of the Assistant Secretary for Legislation (ASL) has the
tools and resources to respond to the needs of not only the members of
the Senate Finance Committee, but any member of Congress. The ASL
office is Congress's chief point of contact with the Department of
Health and Human Services, and I will expect them to make every effort
to accommodate the requests of the committee. If confirmed, I encourage
any member of Congress to contact me if they have any inquiry that is
not being adequately addressed.
______
Questions Submitted by Hon. Debbie Stabenow
president's budget
Question. As Deputy Secretary, you would oversee operations in all
areas of HHS and work to implement annual budgets, among other things.
Do you support the President's FY 2018 HHS budget request in its
entirety? If not, what funding levels or policy proposals do you have
concerns about?
Answer. I have not been at the Department during the preparation of
the budget. While I support the President's budget, I was not at the
Department during its formulation.
medicaid
Question. Because of Medicaid expansion in Michigan, 650,000 people
have insurance, and uncompensated care has been cut by at least 50%.
Thirty thousand jobs have been created, and the State will end the year
with $432 million more than it invested in the program. Do you support
the President's proposed cuts to Medicaid, which would decimate these
gains in my State?
Answer. The President's budget calls for refocusing Medicaid on the
elderly, children, pregnant women, and individuals with disabilities.
Today, many elderly and disabled patients remain on wait lists for
crucial long-term care services while Obamacare's Medicaid expansion
prioritizes non-disabled, childless adults. The President's budget also
provides State-level policymakers new flexibility to advance reforms
that are tailor-made to meet the unique needs of their citizens.
Washington needs to stop measuring the success of a program by how much
money it spends and start focusing on how well it helps those it is
intended to serve. We need to focus on health outcomes, and that is
precisely what the President's budget sets out to do.
maternity coverage
Question. Prior to the 2010, the vast majority of plans on the
individual market did not offer maternity coverage. The American Health
Care Act would allow insurance companies to eliminate the essential
health benefits, including the requirement that plans cover pregnancy
and childbirth. This could force women and families to pay far more for
the care they need, or prevent them from having coverage at all. Do you
believe that all health plans should be required to cover maternity and
newborn care?
Answer. We need to move in a direction where insurers offer
products people want and give them the coverage they want, so that they
can get the care they need. As Deputy Secretary, my objective would be
to ensure all Americans have access to the best and highest quality
coverage and care. Having coverage is not meaningful if one cannot
access the care they need or the quality of care leaves them worse
off--we must work toward both coverage and care.
mental health coverage
Question. Nearly one in five adults has a mental illness, and over
60% of people with mental illness do not receive treatment. Do you
believe that mental health services should be a guaranteed benefit in
all health insurance plans?
Answer. It is important that we as a Nation make sure that every
American has access to the kind of mental health and substance use
disorder treatment that they need. As stated above, we also need to
move in a direction where insurers offer products people want, give
them the coverage they want so that they can get the care they need. If
I am privileged to serve, I will implement the policies agreed upon by
the Congress and signed into law by the President.
______
Questions Submitted by Hon. Robert Menendez
trust in public institutions
Question. If confirmed, you will serve in a position that has been
referred to as the ``Chief Operating Officer'' of the Department of
Health and Human Services. You will serve underneath and report to
Secretary Price, who has repeatedly called into question in recent
months the reliability of the Congressional Budget Office, despite
having personally recommended and vouched for the current head of that
office.
Do you have faith in the CBO's ability to produce non-partisan
analysis of congressional legislation?
Answer. The Congressional Budget Office is full of great,
hardworking individuals; however, their estimates have proven
inaccurate in many areas of significance. The CBO's work is based on
estimates. Estimates are often incorrect.
Question. Do you believe that if the CBO projects that the American
Health Care Act will result in over $800 billion in funding cuts to
Medicaid and 14 million fewer people enrolled in Medicaid in the next
10 years, that this in fact is not a cut to the Medicaid program, as
Secretary Price has suggested?
Answer. Our Nation's health-care system is in critical need of
reform because the former administration and the CBO got it wrong in
the first place. In fact, CBO estimated that 25 million people would be
covered in Obamacare's exchanges in 2017. They were off by 14 million
people. It's important to note that the CBO report estimates that total
Medicaid spending will increase from 2017-2026. This is an argument
about rates of growth in the program, not a cut to overall funding.
fidelity to science
Question. If confirmed, you will serve under President Trump, who
has at various times called into question the established and
repeatedly confirmed scientific fact that vaccines have nothing to do
with autism. Additionally, I am troubled that a number of people hired
at the Department in recent months for positions that do not require
Senate confirmation have espoused views that have no basis in
scientific fact and do harm to public health.
Do you believe that vaccines cause autism?
Answer. The general scientific consensus is that vaccines do not
lead to autism spectrum disorder.
Question. Should you be directed by the President or the Secretary
to take any action that supports the debunked and discredited claims
regarding vaccines and autism, will you comply?
Answer. I understand the significant importance of vaccines to our
Nation's public health, as well as the importance of patients having
confidence in the therapies they receive as part of their care.
Question. Do you believe that abortion causes breast cancer?
Answer. If confirmed, I will work to hold HHS to the highest
scientific standards.
Question. Do you believe that Charmaine Yoest, who was recently
appointed as Assistant Secretary for Public Affairs at HHS and who has
advanced this debunked claim, should continue to serve in this
administration?
Answer. Dr. Yoest has stepped forward to serve her fellow citizens,
and I am grateful for her willingness to do so. She is joining a
department that is fully committed to its mission of protecting the
health and well-being of all Americans, and will carry out that mission
by advancing the President's agenda that is focused on expanding access
to quality, affordable health care.
Question. Do you believe in the efficacy of contraception, such as
birth control pills?
Answer. If confirmed, I will work to hold HHS to the highest
scientific standards.
Question. Do you believe that Teresa Manning, who was recently
appointed as Deputy Assistant Secretary for Population Affairs, meaning
that she will oversee the title X family planning program, and who has
stated that she believes that contraception doesn't work, should
continue to serve in this administration?
Answer. Ms. Manning has stepped forward to serve her fellow
citizens, and I am grateful for her willingness to do so. She too is
joining a department that is fully committed to its mission of
protecting the health and well-being of all Americans, and will carry
out that mission by advancing the President's agenda that is focused on
expanding access to quality, affordable healthc are.
autism cares act
Question. In 2014, I authored the Autism Collaboration,
Accountability, Research, Education, and Support Act of 2014, also
known as the Autism CARES Act. Among its provisions is a requirement
that the Secretary of Health and Human Services submit a report to the
Senate Finance Committee concerning the challenges associated with the
transition of young adults with autism from school-based services to
those available in adulthood. This report is nearly a year overdue.
When will this report be finalized? Will you work with the
Secretary and staff to finalize and submit this report to Congress by
August 8, 2017?
Answer. I am not currently employed at HHS, and therefore have no
inside knowledge of the status of this report, nor the cause of any
delays. However, I look forward to following up with your office should
I receive the confidence of the Senate.
______
Questions Submitted by Hon. Maria Cantwell
basic health program
Question. The Basic Health Program (section 1331 of the Affordable
Care Act), which I authored, is an innovative, State-run plan that is
delivering high-quality and low-cost health care to more than 750,000
low-income Americans and counting. Through the Basic Health Program,
States utilize Federal financing to insure individuals with incomes
between 138 and 200 percent of the Federal poverty level through
managed care plans. In States participating in this voluntary
Affordable Care Act option, we are seeing low premiums and deductibles,
high levels of enrollment, robust insurance competition, and cumulative
State budget savings of more than $1 billion. The operating principle
behind the Basic Health Program is that bundling up a low-income
population can result in low premiums, high enrollment, a healthy risk
pool, and take-up from private insurers.
Do you support the Basic Health Program as a way to empower States
to negotiate a better deal on health insurance for their citizens?
If confirmed as Deputy Secretary of HHS, will you direct CMS to
continue to administer the Basic Health Program as it is authorized
under current law?
If Congress enacts future legislation to repeal the Affordable Care
Act, will you use your discretionary authority to ensure that
individuals currently covered by the Basic Health Program can keep
their health insurance?
Answer. States ought to be empowered to innovate and find solutions
for their citizens with respect to health care, in the area of
insurance and otherwise. For example, HHS is seeking to empower States
through section 1332 waivers to achieve the administration's top
priorities, including improving patients' access to affordable care,
slowing the rate of premium growth to improve the risk pool, bringing
stability to the individual and small group markets, and increasing
consumer choice.
A patient-centered health-care system will provide Americans access
to quality, affordable health-care coverage, empowering individuals and
families to choose the coverage that best meets their needs, and give
States flexibility to address the diverse needs of their most
vulnerable populations. If confirmed, I stand ready to implement reform
that increases patient choices and strengthens access to quality care
for individuals across the country.
long-term care ``rebalancing''
Question. Federal ``rebalancing'' programs, including the Balancing
Incentive Program (section 10202 of the Affordable Care Act), are
helping States transition their Medicaid long-term care population from
expensive nursing homes to cost-effective home- and community-based
care. The vast majority of seniors, including dual-
eligible beneficiaries, would like to stay in their own home. Twenty-
one diverse States, including your home State of Illinois, have
participated in the Balancing Incentive Program under the Affordable
Care Act and are successfully rebalancing their populations to
community-based care--resulting in a better patient experience and
lower costs to the health-care system. In fact, Washington State alone
saved $2.7 billion over a 15 year period through its own rebalancing
efforts.
Do you support such ``rebalancing'' efforts?
Do you agree with me that transitioning patients to lower-cost
settings can yield cost savings for public programs, including
Medicaid?
Do you support policies wherein the Federal Government incents
States to ``rebalance'' their long-term care populations?
Do you support the Balancing Incentive program in the Affordable
Care Act?
Answer. I support the Department's efforts to comply with the laws
as written by Congress. I also support Americans being in charge of
their health-care decisions and dollars as well as meaningful
flexibility for Washington and others States to best care for their
most needy citizens. If confirmed, I will support the Department's
efforts to that end and encourage greater State innovation.
______
Prepared Statement of Hon. Orrin G. Hatch,
a U.S. Senator From Utah
WASHINGTON--Senate Finance Committee Chairman Orrin Hatch (R-Utah)
today delivered the following opening statement at a hearing to
consider a number of pending Department of Treasury and Department of
Health and Human Services (HHS) nominations:
Today we will consider the nominations of Eric Hargan to serve as
Deputy Secretary of Health and Human Services; David Malpass to serve
as Under Secretary for International Affairs of the Treasury; Andrew
Maloney to serve in a position to be designated as Assistant Secretary
for Legislative Affairs of the Treasury; and Brent McIntosh to serve as
General Counsel for the Treasury.
Welcome, all of you, to the Finance Committee.
We appreciate your willingness to serve in these important
positions.
Before I get too far along, I want to thank all of my fellow
Senators for their support and presence today. As we all know, the
government is like a giant clock with many important pieces, gears, and
cogs. Today we are taking an important step toward adding several more
important pieces to keep that clock functioning as it should.
It is also good to see that, despite some frustrations over the
past few months, we have been able to return to normal working order
for processing nominees. As we all know, that process includes
bipartisan input, comity, good faith, and a fair and robust vetting
process. I would like to thank my colleagues, particularly Senator
Wyden, for working to move this process along.
Each of these nominees will have important roles in the
administration, and we'll talk more about the individual posts and our
nominees' excellent credentials and experience as the hearing goes on.
But, before we get to that, I want to be very clear about my
expectations regarding responsiveness to congressional inquiries.
Regardless of party affiliation, it is essential that the
administration make it a top priority to respond to inquiries from
members of Congress.
Let me say this a bit differently to make sure I'm clear. It does
not matter who the President is, nor does it matter which member of
Congress is making the request. When an inquiry is submitted to any
administrative agency, we rightly expect to receive a timely and
responsive answer in return.
In the years that I have been the lead Republican on this
committee, I have asked virtually all of our nominees to commit to
being cooperative and responsive to congressional inquiries. I have
full confidence in each of the nominees that are before us today. I
don't have any reason to believe that they intend to stonewall members
of Congress. But, I will ask all of them to make a similar pledge to
provide timely and responsive answers to questions coming from members
of this committee.
With that, I look forward to hearing from each our nominees as they
share their visions and views here today. I also look forward to what I
hope will continue to be a full and fair committee process that allows
us to process these nominations and report them to the full Senate in
short order.
I'll now recognize Senator Wyden for his opening statement.
______
Prepared Statement of Andrew K. Maloney, Nominated to be Deputy Under
Secretary for Legislative Affairs, Department of the Treasury
Chairman Hatch, Ranking Member Wyden, and distinguished members of
the Senate Finance Committee, it is an honor to appear before you
today. I am humbled to have been recommended by Treasury Secretary
Steven Mnuchin and nominated by the President of the United States to
serve as Assistant Secretary for Legislative Affairs at the Treasury
Department. I have deep respect for the history of the Department and
fully appreciate the footsteps that I must follow to uphold the
traditions and mission of this position.
I would like to take a moment to thank my family who are here
today: first, my wife, Dr. Sabra Klein, who is an accomplished
professor at Johns Hopkins University; our two children, Madeline and
Stella; my father, a former Marine, Kerry Maloney, and my mother, Geri
Maloney, whose first job was as a staffer to Congressman Sonny
Montgomery; my in-laws, Colonel Pete Klein and his wife, retired public
school teacher Marilyn Klein.
I would also like to thank all the members and staff that I have
been able to visit with over the past couple of weeks. I enjoyed
meeting with you and hearing your perspective. If confirmed, I look
forward to continuing the dialogue we have started and my door will
always be open.
I grew up on a small farm in Rockingham County, Virginia. We raised
poultry, sheep, and some beef cows. I was active in 4-H, and the Future
Farmers of America. Since my mother worked on Capitol Hill and my uncle
was convention coordinator to Hubert Humphrey's Presidential campaign,
politics was always a discussion at our dinner table. I caught the bug
early in life and wanted to work in government.
My first opportunity to work on Capitol Hill was a college
internship, working in the press office of Virginia Senator John
Warner. My job was to look through hard copies of the local newspapers
for articles where he was mentioned, cut each article out, tape it on
another piece of paper, photocopy and distribute it as part of the
press clippings.
Upon completing college, I worked as a legislative aide in the
Virginia General Assembly, gaining a firsthand view of how States must
address budget and economic concerns. Upon completion of the General
Assembly, I returned to Washington, DC to pursue law school and work on
Capitol Hill. During law school, I was able to spend a summer working
for the Honorable Laurence J. Whalen at the U.S. Tax Court. Following
law school, I was very fortunate to spend 5 years working in the House
of Representatives. I oversaw and managed the legislative and State
staff, reinforcing the importance of responding to the needs of
constituents. I worked on a range of issues that included energy,
financial services, tax, trade, appropriations and transportation. I
also served in House leadership and keenly understand the legislative
dynamic between leadership and the committees and the need to work with
colleagues in a bipartisan manner.
I left Capitol Hill in 2002 to join a government affairs firm.
During my tenure at the firm, I was asked to become the chief executive
officer. In addition to providing strategic counsel to the firm
clients, I was responsible for managing the day-to-day business of the
company, coordinating with our parent company, and handling marketing
and staffing decisions. I was very proud to have helped build one of
the most successful bipartisan firms. After leaving the firm, I joined
an American energy company, where I created an integrated global
external affairs function, focusing on the intersection of public
policy, public affairs and economic conditions.
As you know, the Treasury Department helps preserve and promote
financial stability and security here in the United States and around
the world. The Department has one of the most important functions in
our government and is the premier financial institution in the world. I
fully understand the enormity of the role of the Office of Legislative
Affairs and the importance of the relationship this office has with
Congress. If confirmed, I commit to being responsive to you and your
staff. I will strive to ensure your views are communicated within the
Department and pledge to maintain an open line of communication between
the Department and Congress.
Again, I would like to thank Chairman Hatch, Ranking Member Wyden,
the Senators, and the staff for your consideration. I look forward to
responding to any questions that you may have.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Andrew Kerwin Maloney.
2. Position to which nominated: Deputy Under Secretary, designated
Assistant Secretary for Legislative Affairs.
3. Date of nomination: May 10, 2017.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: March 30, 1969, Washington, DC.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list secondary and higher education institutions, dates
attended, degree received, and date degree granted): Turner-Ashby High
School, August 1983-June 1987, graduated June 1987; Randolph-Macon
College, August 1987-May 1991, bachelors in political science, received
degree in May 1991; and Catholic University of America, Columbus School
of Law, August 1993-June 1996, juris doctorate received in June 1996.
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment):
Campaign Manager, Tommy Norment for State Senate, Williamsburg,
VA, 1991. Managed state Senate campaign.
Legislative Aide, Senator Tommy Norment, Richmond, VA, 1992.
Managed legislative activities for Senator.
Vice President, Carlyle Gregory Company, Falls Church, VA, 1992-
1993. Assisted managing political campaigns at state and congressional
level.
Summer Clerk, U.S. Tax Court, Washington, DC, summer 1994. Clerked
for the Honorable Laurence Whalen.
Legislative Liaison, Robertson, Monagle, and Eastaugh, Arlington,
VA, 1995-1997. Assisted partners with Alaska-based legislative/law firm
on various client initiatives, while attending law school.
Legislative Assistant, Congressman Roger Wicker, Washington, DC,
1997-1998. Assisted member with appropriations issues, legislative
correspondence, and campaign finance reform.
Legislative Counsel, Congressman Ed Bryant, Washington, DC, 1998-
1999. Assisted member with Judiciary Committee issues.
Administrative Assistant/Legislative Director, Majority Whip Tom
DeLay, Washington, DC, 1999-2002. Managed Congressional office,
assisted on energy and state-related issues.
Partner/CEO Federalist Group/Ogilvy Government Relations,
Washington, DC, 2002-2012. Provided strategic and government advocacy
services to multiple clients over a 10-year period. Federalist Group
was sold to WPP in 2005, changed name to Ogilvy Government Relations,
then became CEO in 2009.
Senior Advisor, Republican National Committee, Washington, DC,
2012. Worked with RNC and Romney campaign on congressional outreach.
Legislative Outreach Director, Romney Readiness Project,
Washington, DC, 2012. Managed and oversaw preparations for legislative
initiatives including lame duck decisions, nominations, and first 200
day priorities.
Vice President, Hess Corporation, Washington, DC, 2012-current.
Manage and oversee global communications, government affairs, and
corporate social responsibility.
10. Government experience (list any advisory, consultative, honorary,
or other part-time service or positions with Federal, state, or local
governments, other than those listed above): All positions listed
above.
11. Business relationships (list all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, other
business enterprise, or educational or other institution): Listed
above, former partner at the Federalist Group.
12. Membership (list all memberships and offices held in professional,
fraternal, scholarly, civic, business, charitable, and other
organizations): Randolph-Macon College, member, board of trustees;
Meridian International Center, member, board of trustees and executive
committee; Business Government Relations Council, member, board of
directors; Chamber of Commerce, member, public affairs council; John
Hay Institute, chairman, Energy Security Committee; Young Presidents'
Organization, gold member; Arthur Page Society, member; District of
Columbia Bar Association; Virginia State Bar Association; Holy Trinity
Catholic Church, member, Development Committee; Cleveland Park
Historical Society, former board member; The Metropolitan Club, member;
Columbia Country Club, member; and Cleveland Park Club, member.
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate.
None.
b. List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years.
Washington, DC Republican Party Committee; Senior Advisor,
Republican National Committee.
c. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $50 or more for the past 10 years.
Andrew K. Maloney Individual Contributions
Contributions to All Other Political Committees Except Joint Fundraising
Committees
------------------------------------------------------------------------
Committee Transaction
Employer Occupation Name Date Amount
------------------------------------------------------------------------
Federalist Attorney Bayou Leader 11/20/2003 $500
Group Political
Action
Committee
------------------------------------------------------------------------
Federalist Executive Help 5/16/2003 $1,000
Group LLC America's
Leaders
Political
Action
Committee
(HALPAC)
------------------------------------------------------------------------
Federalist Executive Promoting 8/23/2004 $500
Group LLC Republicans
You Can
Elect
Political
Action
Committee
------------------------------------------------------------------------
Federalist Bryant, 7/25/2002 $250
Group LLC Edward G.
via Ed
Bryant for
U.S. Senate
Inc.
------------------------------------------------------------------------
Federalist Consultant Good Fund, 7/26/2006 $3,000
Group The
------------------------------------------------------------------------
Federalist Consultant Good Fund, 6/3/2009 $1,000
Group The
------------------------------------------------------------------------
Federalist Executive Keep Our 9/29/2004 $2,000
Group Mission PAC
------------------------------------------------------------------------
Federalist Lobbyist Nunes, Devin 5/15/2007 $500
Group G. via Devin
Nunes
Campaign
Committee
------------------------------------------------------------------------
Federalist Managing 21st Century 5/31/2006 $1,000
Group Director PAC
------------------------------------------------------------------------
Federalist Associate Tauzin, 6/28/2004 $500
Group LLC Wilbert J.,
III via
Tauzin for
Congress
------------------------------------------------------------------------
Federalist Executive Help 5/25/2006 $1,000
Group LLC America's
Leaders
Political
Action
Committee
(HALPAC)
------------------------------------------------------------------------
Federalist Executive Lewis, Jerry 5/15/2006 $1,000
Group LLC via Jerry
Lewis
Political
Action
Committee
------------------------------------------------------------------------
Federalist Executive Rely On Your 3/10/2005 $2,500
Group LLC Beliefs Fund
------------------------------------------------------------------------
Federalist Executive Rely On Your 7/28/2005 $1,000
Group LLC Beliefs Fund
------------------------------------------------------------------------
Federalist Vice President Shuster, 8/8/2005 $1,000
Group LLC William via
Bill Shuster
for Congress
------------------------------------------------------------------------
Federalist Vice President Shuster, 5/15/2014 $2,500
Group LLC William via
Bill Shuster
for Congress
------------------------------------------------------------------------
Federalist Vice President Shuster, 2/23/2007 $1,000
Group LLC William via
Bill Shuster
for Congress
------------------------------------------------------------------------
Federalist Lobbyist Shuster, 8/30/2004 $500
Group William via
Bill Shuster
for Congress
------------------------------------------------------------------------
Hess Global Gillespie, 2/25/2014 $2,600
Corporation Government Edward W.
Affairs via Ed
Gillespie
for Senate
------------------------------------------------------------------------
Hess Global Gillespie, 3/6/2015 $500
Corporation Government Edward W.
Affairs via Ed
Gillespie
for Senate
------------------------------------------------------------------------
Hess Vice Hess 4/9/2014 $5,000
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 11/27/2015 $400
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 12/24/2015 $400
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 1/21/2016 $400
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 2/19/2016 $400
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice President Hess 3/31/2016 $600
Corporation , Government Corporation
Affairs and Political
Public Policy Action
Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 4/28/2016 $400
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 5/26/2016 $400
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 6/23/2016 $400
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 7/21/2016 $400
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 8/18/2016 $400
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 9/29/2016 $600
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 10/13/2016 $200
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Hess 11/25/2016 $600
Corporation President, Corporation
Government Political
Affairs and Action
Public Policy Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Vice Nunes, Devin 3/27/2015 $500
Corporation President, G. via Devin
Government Nunes
and External Campaign
Affairs Committee
------------------------------------------------------------------------
Hess Vice Stefanik, 9/16/2013 $2,600
Corporation President, Elise M. via
Global Elise for
Government Congress
Affairs and
Public Policy
------------------------------------------------------------------------
Hess Hess 12/22/2016 $400
Corporation Corporation
Political
Action
Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Hess 1/20/2017 $400
Corporation Corporation
Political
Action
Committee
(Hess PAC)
------------------------------------------------------------------------
Hess Hess 2/16/2017 $400
Corporation Corporation
Political
Action
Committee
(Hess PAC)
------------------------------------------------------------------------
Ogilvy CEO Grassley, 6/15/2011 $500
Government Charles E.,
Relations Senator via
Grassley
Committee
Inc.
------------------------------------------------------------------------
Ogilvy Consultant Good Fund, 6/8/2011 $2,500
Government The
Relations
------------------------------------------------------------------------
Ogilvy Government Wicker, Roger 6/30/2008 $2,300
Government Affairs F. via
Relations Wicker for
Senate
------------------------------------------------------------------------
Ogilvy Government Wicker, Roger 9/25/2009 $2,000
Government Affairs F. via
Relations Wicker for
Senate
------------------------------------------------------------------------
Ogilvy Government Wicker, Roger 9/25/2009 $2,000
Government Affairs F. via
Relations Wicker for
Senate
------------------------------------------------------------------------
Ogilvy Government Wicker, Roger 9/25/2009 $2,000
Government Affairs F. via
Relations Wicker for
Senate
------------------------------------------------------------------------
Ogilvy Government Wicker, Roger 6/17/2011 $500
Government Affairs F. via
Relations Wicker for
Senate
------------------------------------------------------------------------
Ogilvy Government Wicker, Roger 6/17/2011 $2,000
Government Affairs F. via
Relations Wicker for
Senate
------------------------------------------------------------------------
Ogilvy Government Win Back 9/30/2009 $1,000
Government Relations America
Relations Political
Action
Committee
------------------------------------------------------------------------
Ogilvy Lobbyist King, Pete 6/29/2009 $500
Government via Pete
Relations King For
Congress
Committee
------------------------------------------------------------------------
Ogilvy Management Graham, 6/28/2007 $500
Government Lindsey O.
Relations via Lindsey
Graham for
Senate
------------------------------------------------------------------------
Ogilvy Managing Thune, John 4/27/2007 $500
Government Director via Friends
Relations of John
Thune
------------------------------------------------------------------------
Ogilvy CEO Shuster, 9/15/2011 $1,000
Government William via
Relations Bill Shuster
for Congress
------------------------------------------------------------------------
Ogilvy Managing Boehner, John 7/24/20071 $1,000
Government Director, A. via
Relations Government Friends of
Relations John Boehner
------------------------------------------------------------------------
Ogilvy Managing Boehner, John 7/18/2008 $250
Government Director, A. via
Relations Government Friends of
Relations John Boehner
------------------------------------------------------------------------
The Partner National 5/5/2005 $1,000
Federalist Association
Group of Chain
Drug Stores,
Inc.
Political
Action
Committee
------------------------------------------------------------------------
-- Information NRSC 2/28/2006 $2,500
Requested
------------------------------------------------------------------------
Hess Vice Scott, 5/31/2016 $500
President, Timothy E.
Global via Tim
Government Scott for
Affairs Senate
------------------------------------------------------------------------
Hess Vice Scott, 6/21/2013 $500
President, Timothy E.
Global via Tim
Government Scott for
Affairs Senate
------------------------------------------------------------------------
Hess Vice Heartland 5/7/2013 $1,500
Corporation President, Values PAC
Government
Affairs
------------------------------------------------------------------------
Hess Vice Thune, John 1/14/2015 $1,000
Corporation President, via Friends
Government of John
Affairs Thune
------------------------------------------------------------------------
Hess Vice Tiberi, 6/12/2014 $1,000
Corporation President, Patrick J.
Global via Tiberi
Government for Congress
Affairs
------------------------------------------------------------------------
Ogilvy CEO Meehan, 11/14/2011 $500
Government Patrick L.
Relations via Pat
Meehan for
Congress
------------------------------------------------------------------------
Ogilvy Management Majority 4/9/2011 $5,000
Government Committee
Relations PAC--MC PAC
------------------------------------------------------------------------
Ogilvy CEO Scott, 6/14/2011 $500
Government Timothy via
Relations Tim Scott
for Congress
------------------------------------------------------------------------
Ogilvy Chief Rokita, 5/8/2012 $500
Government Executive Theodore
Relations Officer Edward via
Hoosiers for
Rokita, Inc.
------------------------------------------------------------------------
Ogilvy Government Win Back 2/24/2009 $500
Government Relations America
Relations Political
Action
Committee
------------------------------------------------------------------------
Ogilvy Lobbyist Boozman, John 5/13/2010 $500
Government via Boozman
Relations for Arkansas
------------------------------------------------------------------------
Ogilvy Lobbyist Boozman, John 9/17/2010 $500
Government via Boozman
Relations for Arkansas
------------------------------------------------------------------------
Ogilvy Lobbyist Boozman, John 10/1/2010 $500
Government via Boozman
Relations for Arkansas
------------------------------------------------------------------------
Ogilvy Lobbyist Castle, 12/18/2009 $1,000
Government Michael N.
Relations via
CastlePAC
LLC
------------------------------------------------------------------------
Ogilvy Lobbyist Castle, 6/30/2010 -$1000
Government Michael N.
Relations via
CastlePAC
LLC
------------------------------------------------------------------------
Ogilvy Lobbyist Castle, 6/30/2010 $1,000
Government Michael N.
Relations via
CastlePAC
LLC
------------------------------------------------------------------------
Ogilvy Lobbyist Castle, 6/30/2010 $2,400
Government Michael N.
Relations via
CastlePAC
LLC
------------------------------------------------------------------------
Ogilvy Lobbyist Tiahrt, Todd 7/19/2010 $1,400
Government via Kansans
Relations for Tiahrt
------------------------------------------------------------------------
Ogilvy Lobbyist Walden, 9/23/2009 $500
Government Gregory P.
Relations via Walden
for Congress
------------------------------------------------------------------------
Castle, 10/4/2010 -$1,000
Michael N.
via
Castlepac
LLC
------------------------------------------------------------------------
Federalist Associate Barton, Joe 11/24/2003 $1,000
Group Linus via
The
Congressman
Joe Barton
Committee
------------------------------------------------------------------------
Hess Vice NRSC 9/17/2013 $25,000
Corporation President,
Global
Government
Affairs and
Public Policy
------------------------------------------------------------------------
Ogilvy Government Blunt, Roy 5/19/2009 $2,000
Government Affairs via Friends
Relations of Roy Blunt
------------------------------------------------------------------------
Ogilvy Government Blunt, Roy 10/1/2010 $1,000
Government Affairs via Friends
Relations of Roy Blunt
------------------------------------------------------------------------
Ogilvy Government Blunt, Roy 10/28/2010 $1,000
Government Affairs via Friends
Relations of Roy Blunt
------------------------------------------------------------------------
Information NRSC 5/27/2008 $500
Requested Per
Best Efforts
------------------------------------------------------------------------
Information Information NRSC 6/27/2013 $5,000
Requested Requested Per
Per Best Best Efforts
Efforts
------------------------------------------------------------------------
Federalist Government Bush, George 6/18/2003 $2,000
Group Relations W. via Bush-
Cheney 2004
(Primary)
Inc.
------------------------------------------------------------------------
Federalist Managing Freedom 6/30/2006 $2,500
Group Director Project; The
------------------------------------------------------------------------
Info Info Requested NRCC 6/30/2005 $500
Requested
------------------------------------------------------------------------
The Consultant New 5/9/2006 $1,000
Federalist Republican
Group Majority
Fund
------------------------------------------------------------------------
Federalist Executive Davis, 3/31/2006 $500
Group LLC Geoffrey C.
via Geoff
Davis for
Congress
------------------------------------------------------------------------
Federalist Executive Fund for a 4/3/2003 $1,000
Group LLC Conservative
Future
------------------------------------------------------------------------
Federalist Executive Pete's 12/31/2003 $1,000
Group LLC Political
Action
Committee
------------------------------------------------------------------------
Federalist Lobbyist American 5/7/2004 $500
Group LLC Liberty
Political
Action
Committee
------------------------------------------------------------------------
Federalist Executive Rely on Your 7/21/2003 $1,000
Group LLC/ Beliefs Fund
Executive
------------------------------------------------------------------------
Ogilvy Lobbyist Opportunity 8/9/2010 $1,000
Government and
Relations Responsibili
ty Restored
in Our
Nation PAC
------------------------------------------------------------------------
Federalist Consultant Crane, Philip 10/29/2004 $1,000
Group M. via Crane
for Congress
Committee
------------------------------------------------------------------------
Federalist Partner Sweeney, John 7/28/2005 $1,000
Group E. via
Sweeney for
Congress,
Inc.
------------------------------------------------------------------------
Federalist Partner Sweeney, John 8/23/2006 $1,000
Group E. via
Sweeney for
Congress,
Inc.
------------------------------------------------------------------------
Federalist Vice President Fossella, 4/22/2008 $500
Group Vito via
Committee to
Re-Elect
Vito
Fossella
------------------------------------------------------------------------
Federalist Executive Help 7/17/2007 $500
Group LLC America's
Leaders
Political
Action
Committee
(HALPAC)
------------------------------------------------------------------------
Federalist Executive Help 3/31/2008 $1,000
Group LLC America's
Leaders
Political
Action
Committee
(HALPAC)
------------------------------------------------------------------------
Federalist Executive Help 10/26/2010 $1,000
Group LLC America's
Leaders
Political
Action
Committee
(HALPAC)
------------------------------------------------------------------------
Federalist Government Bilirakis, 9/29/2008 $500
Group LLC Consultant Gus M. via
Bilirakis
For Congress
------------------------------------------------------------------------
Hess Vice Trust PAC 6/30/2014 $2,500
Corporation President, Team
Global Republicans
Government for
Affairs Utilizing
Sensible
Tactics
------------------------------------------------------------------------
Ogilvy Managing Burgess, 12/18/2007 $500
Government Director Michael C.
Relations Dr. via
Michael
Burgess for
Congress
------------------------------------------------------------------------
Ogilvy Managing Burgess, 12/15/2009 $500
Government Director Michael C.
Relations Dr. via
Michael
Burgess for
Congress
------------------------------------------------------------------------
Ogilvy Managing Trust PAC 4/5/2011 $2,500
Government Director Team
Relations Republicans
for
Utilizing
Sensible
Tactics
------------------------------------------------------------------------
Ogilvy Managing Camp, David 10/22/2007 $500
Government Director Lee via Dave
Relations Camp for
Congress
------------------------------------------------------------------------
Ogilvy Managing Camp, David 12/21/2007 $1,000
Government Director Lee via Dave
Relations Camp for
Congress
------------------------------------------------------------------------
Sonnenschein Attorney Longhorn PAC 9/29/2006 $1,000
Nath
------------------------------------------------------------------------
The Consultant McCrery, 6/8/2006 $1,000
Federalist James O.,
Group III via
McCrery for
Congress
Committee
------------------------------------------------------------------------
The Consultant McCrery, 9/28/2007 $1,000
Federalist James O.,
Group III via
McCrery for
Congress
Committee
------------------------------------------------------------------------
The Government House 7/27/2006 $1,000
Federalist Relations Conservative
Group/ s Fund
Government
Relation
------------------------------------------------------------------------
Boehner, John 11/16/2015 -$2,700
A. via
Friends of
John Boehner
------------------------------------------------------------------------
Boehner, John 12/31/2016 $2,700
A. via
Friends of
John Boehner
------------------------------------------------------------------------
NRCC 7/21/2011 -$5,000
------------------------------------------------------------------------
Ogilvy CEO Ribble, Reid 11/29/2011 $1,000
J. Rep. via
Ribble for
Congress
------------------------------------------------------------------------
Ogilvy CEO Ribble, Reid 5/29/2012 $500
J. Rep. via
Ribble for
Congress
------------------------------------------------------------------------
Ogilvy CEO Hudson, 10/31/2011 $250
Government Richard L.,
Relations Jr. via
Hudson for
Congress
------------------------------------------------------------------------
Ogilvy CEO Lucas, Frank 9/30/2011 $500
Government D. via Lucas
Relations for Congress
------------------------------------------------------------------------
Oglilvy Lobbyist Graves, 11/06/2009 $250
Government Samuel B.,
Relations Jr. ``Sam''
via Graves
for Congress
------------------------------------------------------------------------
Oglilvy Lobbyist Graves, 3/22/2010 $500
Government Samuel B.,
Relations Jr. ``Sam''
via Graves
for Congress
------------------------------------------------------------------------
Federalist Associate Barton, Joe 3/17/2005 $1,000
Group Linus via
The
Congressman
Joe Barton
Committee
------------------------------------------------------------------------
Federalist Associate Texas Freedom 3/21/2003 $1,000
Group Fund
------------------------------------------------------------------------
Federalist Associate Responsibilit 7/14/2003 $500
Group LLC y and
Freedom Work
PAC (RFWPAC)
------------------------------------------------------------------------
Federalist Associate Responsibilit 10/12/2004 $500
Group LLC y and
Freedom Work
PAC (RFWPAC)
------------------------------------------------------------------------
Ogilvy Managing Upton, 12/20/2007 $1,000
Government Director Frederick
Relations Stephen via
Upton for
All of Us
------------------------------------------------------------------------
Ogilvy CEO NRCC 4/20/2012 $30,000
Government
Relations
------------------------------------------------------------------------
Self Consultant Republican 12/31/2013 $15,000
National
Committee
------------------------------------------------------------------------
Federalist Consultant Mica, John L. 3/29/2007 $500
Group via Mica for
Congress
------------------------------------------------------------------------
Federalist Partner Republican 3/19/2008 $5,000
Group LLC National
Committee
------------------------------------------------------------------------
Federalist Executive Davis, 3/11/2008 $500
Group LLC Geoffrey C.
via Geoff
Davis for
Congress
------------------------------------------------------------------------
Federalist Government Republican 7/10/2014 $1,000
Group LLC Relations Party of
Virginia
Inc.
------------------------------------------------------------------------
Federalist Member Sodrel, 10/26/2004 $500
Group LLC Michael E.
via Friends
of Mike
Sodrel
------------------------------------------------------------------------
Federalist President Rigell, 10/26/2010 $1,000
Group LLC Edward Scott
via Rigell
for Congress
------------------------------------------------------------------------
Federalist Managing Keller, 5/5/2008 $500
Group LLC Director Richard
Anthony via
Keller for
Congress
------------------------------------------------------------------------
Federalist Managing Keller, 9/26/2008 $500
Group LLC Director Richard
Anthony via
Keller for
Congress
------------------------------------------------------------------------
Ogilvy Government Johnson, Sam 9/28/2009 $500
Government Relations via Friends
Relations Consultant of Sam
Johnson
------------------------------------------------------------------------
Ogilvy Consultant Mica, John L. 8/14/2007 $1,000
Government via Mica for
Relations Congress
------------------------------------------------------------------------
Ogilvy Government Free and 7/21/2008 $5,000
Government Relations Strong
Relations America PAC,
Inc.
------------------------------------------------------------------------
Ogilvy Government Free and 3/12/2009 $2,500
Government Relations Strong
Relations America PAC,
Inc.
------------------------------------------------------------------------
Ogilvy Lobbyist NRCC 2/27/2009 $2,500
Government
Relations
------------------------------------------------------------------------
Ogilvy Managing Rounsaville, 11/2/2007 $500
Government Director John Walter
Relations via John
Rounsaville
for Congress
------------------------------------------------------------------------
Ogilvy Managing White, Darren 8/4/2008 $500
Government Director P. via
Relations Darren White
for Congress
------------------------------------------------------------------------
Ogilvy CEO Upton, 12/12/2011 $2,500
Government Frederick
Relations Stephen via
Upton for
All of Us
------------------------------------------------------------------------
The Associate Barton, Joe 8/11/2005 $1,000
Federalist Linus via
Group the
Congressman
Joe Barton
Committee
------------------------------------------------------------------------
The Associate Texas Freedom 11/19/2007 $2,500
Federalist Fund
Group
------------------------------------------------------------------------
Information NRCC 10/26/2007 $2,500
Requested
------------------------------------------------------------------------
Hess Vice Cheney, 6/25/2016 $1,000
Corporation President, Elizabeth
Government via Liz
and External Cheney for
Affairs Wyoming
------------------------------------------------------------------------
Ogilvy CEO Kinzinger, 6/30/2011 $500
Government Adam via
Relations Kinzinger
for Congress
------------------------------------------------------------------------
Ogilvy Government NRCC 4/21/2010 $10,000
Government Relations
Relations
------------------------------------------------------------------------
Ogilvy Government NRCC 4/21/2010 $10,000
Government Relations
Relations
------------------------------------------------------------------------
Ogilvy Lobbyist Free and 8/26/2009 $2,500
Government Strong
Relations America PAC,
Inc.
------------------------------------------------------------------------
0gilvy Lobbyist Free and 2/18/2010 $5,000
Government Strong
Relations America PAC,
Inc.
------------------------------------------------------------------------
Ogilvy CEO Grimm, 12/19/2011 $500
Government Michael via
Relations Michael
Grimm for
Congress
------------------------------------------------------------------------
Federalist Executive Pickering, 3/9/2007 $500
Group LLC Charles W.
``Chip,''
Jr. via
Pickering
for Congress
------------------------------------------------------------------------
Total $250,100.00
Contrib
utions
------------------------------------------------------------------------
Andrew K. Maloney Joint Fundraising Contributions
These are contributions to committees that are raising funds to be
distributed to other committees
The breakdown of these contributions to their final recipients may
appear below
------------------------------------------------------------------------
Committee Transaction
Employer Occupation Name Date Amount
------------------------------------------------------------------------
Federalist Executive Team Texas 9/28/2004 $1,500
Group Committee
------------------------------------------------------------------------
Ogilvy Executive Boehner for 9/15/2010 $10,000
Government Speaker
Relations
------------------------------------------------------------------------
Hess Vice Boehner for 3/28/2013 $30,000
Corporation President, Speaker
Government
Affairs
------------------------------------------------------------------------
Hess Vice President Boehner for 6/22/2015 $25,000
Corporation Speaker
------------------------------------------------------------------------
Hess Vice Boehner for 7/31/2014 $25,000
Corporation President, Speaker
Government
Affairs
------------------------------------------------------------------------
Total $91,500.00
Joint
Fundrai
sing
------------------------------------------------------------------------
Andrew K. Maloney Recipient of Joint Fundraiser Contributions
These are the final recipients of joint fundraising contributions
------------------------------------------------------------------------
Committee Transaction
Employer Occupation Name Date Amount
------------------------------------------------------------------------
Hess Vice NRCC 3/31/2013 $30,000
Corporation President,
Global
Government
Affairs
------------------------------------------------------------------------
Hess Vice NRCC 6/22/2015 $19,600
Corporation President,
Global
Government
Affairs
------------------------------------------------------------------------
Hess Vice NRCC 7/31/2014 $22,400
Corporation President,
Global
Government
Affairs
------------------------------------------------------------------------
Self Consultant Republican 9/25/2012 $20,000
National
Committee
------------------------------------------------------------------------
Hess Vice Boehner, John 7/31/2014 $2,600
Corporation President, A. via
Government Friends of
Affairs John Boehner
------------------------------------------------------------------------
Hess Vice Boehner, John 6/22/2015 $2,700
Corporation President, A. via
Government Friends of
Affairs John Boehner
------------------------------------------------------------------------
Hess Vice Boehner, John 6/22/2015 $2,700
Corporation President, A. via
Government Friends of
Affairs John Boehner
------------------------------------------------------------------------
Ogilvy Government NRCC 10/15/2010 $10,000
Government Relations
Relations
------------------------------------------------------------------------
Recipien $110,000.00
t Total
------------------------------------------------------------------------
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement):
None.
15. Published writings (list the titles, publishers, and dates of all
books, articles, reports, or other published materials you have
written): ``How to Influence Government,'' Moses Mercado and Drew
Maloney, Forbes, January 19, 2009; and ``Lessons in Navigating U.S.
Economic Rapids,'' Jamie Moeller and Drew Maloney, China Daily, June 6,
2006.
16. Speeches (list all formal speeches you have delivered during the
past 5 years which are on topics relevant to the position for which you
have been nominated):
No formal speeches.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
During college, I interned on Capitol Hill, and following college
I worked in Virginia's General Assembly. I have always been interested
in public policy and government. After law school, I returned to
Capitol Hill and worked on various issues for more than 5 years. I knew
that I wanted to return to government later in my life. Now, after more
than 25 years managing complex public policy issues, I look forward to
the possibility of returning. I understand the need to build support
for public policy positions and to be responsive to various
constituencies. My background on Capitol Hill and the private sector
offers a good perspective of how to support the Treasury Department and
appreciate the importance of the legislative bodies.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections with your present employers,
business firms, associations, or organizations if you are confirmed by
the Senate? If not, provide details.
Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
None. I have consulted with Department of the Treasury's ethics
staff and the Office of Government Ethics regarding potential issues
arising out of my financial holdings, past income, and past employment
relationships. These have been addressed in the ethics agreement I
entered into with the Department of the Treasury's designated agency
ethics official. I am not aware of any other potential conflicts of
interest.
2. Describe any business relationship, dealing or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
I am not aware of any business relationship or financial
transaction which would constitute a conflict of interest.
3. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy. Activities
performed as an employee of the Federal Government need not be listed.
For the past 4\1/2\ years, I have been vice president of Hess
Corporation, overseeing its communications, social responsibility, and
government affairs operation. The company was a strong supporter and
advocate of overturning the crude oil export ban. The company engaged
on a variety of energy and environmental issues. Prior to Hess, I
served as CEO for Ogilvy Government Relations. My focus was on the
energy practice, advocating for oil and gas and power generators before
Congress. I also assisted my partners with financial service,
transportation, and other client interests. All advocacy activities
from Ogilvy are publicly filed with the House and Senate.
4. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
I have executed an ethics agreement with the Department of the
Treasury's designated agency ethics official and will abide by the
terms of such agreement. If confirmed, I will consult with ethics
counsel in the event that I identify a potential conflict of interest.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency,
professional association, disciplinary committee, or other professional
group? If so, provide details.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county or municipal law, regulation, or ordinance,
other than a minor traffic offense? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
I am not aware of additional information.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate are you willing to provide such
information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to Andrew K. Maloney
Question Submitted by Hon. Debbie Stabenow
Question. There are disturbing reports that the Trump
administration has been instructing his Secretaries and their staffs
not to respond to questions and requests from Democratic members of
Congress. If true, this is very troubling news, as not only does
Congress have an important oversight role over the executive branch,
but also, members of Congress often need to request urgent information
on behalf of constituents or about issues of key local importance.
If confirmed, will you commit to being equally responsive to
members of Congress on both sides of the aisle?
Answer. It is my understanding that party affiliation has no
influence on how the Department of the Treasury responds to requests
from members of Congress. If confirmed, I intend to respond, consistent
with legal obligations, to all inquiries from members of Congress.
______
Question Submitted by Hon. Bill Nelson
Question. How would you advise the Treasury Secretary to engage
with Democrats on tax reform?
Answer. If confirmed, I would plan to offer advice and counsel to
the Secretary and other Treasury Department officials based on lessons
learned from my years of service on Capitol Hill. During that time, I
came to understand and fully appreciate the dynamic between Congress
and the executive branch, as well as the need to work with colleagues
in a bipartisan manner. Complex legislative issues, such as reforming
our tax code, are strengthened when work is done to find areas of
agreement between both parties.
______
Questions Submitted by Hon. Robert P. Casey, Jr.
Question. Mr. Maloney, if the Treasury General Counsel on their
own, or at the direction of White House Counsel, advises that it is
appropriate for you to only respond to Republican offices and not
Democratic offices, will you adhere to such guidance?
Answer. It is my understanding that party affiliation has no
influence on how the Department of the Treasury responds to requests
from members of Congress. If confirmed, I intend to respond, consistent
with legal obligations, to all inquiries from members of Congress.
Question. Mr. Maloney, if the Treasury General Counsel on their
own, or at the direction of White House Counsel, directs that you only
respond to requests from Republican offices and not Democratic offices,
will you inform the chairman and ranking member of the Finance
Committee promptly that you have been directed to not respond to
Democratic requesters?
Answer. See response to question above.
Question. Mr. Maloney, if confirmed, in your capacity as Deputy
Under Secretary for Legislative Affairs, would you advise the Secretary
to respond to Senators' requests for information regardless of their
party affiliation? That is, would you advise the Secretary that it is
improper to only respond to requests from Republican offices and not
requests from Democratic offices?
Answer. See response to my first question.
Question. Mr. Maloney, Republican members of the Finance Committee
were provided OneWest Bank foreclosure data over 4 months ago. In
January 2017, I followed up on my direct verbal request for this
information with a question for the record, where the Secretary
responded, ``I have requested the additional [foreclosure]
information.''
When can I expect to receive the data I requested on OneWest Bank's
foreclosures in Pennsylvania, and nationally?
Answer. Although I do not have access to any specifics concerning
this matter, I can commit to work with your office on this request, if
confirmed.
Question. Mr. Maloney, at his nomination hearing, Secretary Mnuchin
told the committee in his sworn testimony that while head of OneWest
Bank he sent a letter to HUD raising concerns about their reverse
mortgage guidance. I requested a copy of that letter over 4 months ago.
In January 2017, I followed up on this verbal request with a question
for the record where the Secretary responded, ``I have requested the
additional [foreclosure] information as well as the referenced [reverse
mortgage] letter.''
When can I expect to receive a copy of this letter?
Answer. Although I do not have access to any specifics concerning
this matter, I can commit to work with your office on this request, if
confirmed.
Question. Mr. Maloney, directly following Secretary Mnuchin's
appearance before the Finance Committee on May 25, 2017, Secretary
Mnuchin was delivered a letter asking he provide the committee by end
of business the following day a copy of his request to CIT for
foreclosure information and his request for a copy of the letter he
claims he sent to HUD regarding reverse mortgages. The committee has
yet to receive a copy of this correspondence.
When can we expect to receive a copy of the Secretary's
correspondence to CIT requesting OneWest Bank's State and national
foreclosure information, and his letter on reverse mortgages?
Answer. Although I do not have access to any specifics concerning
this matter, I can commit to work with your office on this request, if
confirmed.
______
Prepared Statement of David Malpass, Nominated to be Under Secretary
for International Affairs, Department of the Treasury
Chairman Hatch, Ranking Member Wyden, and distinguished members of
the Finance Committee, thank you for the opportunity to appear before
you today and for your consideration of my nomination to be Under
Secretary of the Treasury for International Affairs. I am deeply
honored by the President's decision to nominate me, and I have very
much appreciated meeting with many members of the committee and your
staff this spring.
Before discussing my own background, I would like to thank my
wonderful wife, Adele, and our four children--Robert, Emily, Julia, and
Peter--for their support. Adele is a former Senate Budget Committee
staffer and someone who cares deeply about pursuing policies that
promote prosperity for all Americans. I am particularly grateful for
her hard work and support over the last year and her unwavering
commitment to our Nation.
We especially miss our parents on this occasion. They were keenly
interested in public policy and would have been very proud to be here.
Both our fathers died last year. They were intensely patriotic, served
in the army in World War II, and chose to be buried with military
honors. Adele's mother died earlier, and my mother was not able to
travel from Colorado, but I can feel their encouragement today as the
Nation faces major challenges.
While the position to which I have been nominated primarily relates
to international issues, my meetings with many of you focused on the
local impact on your constituents. I listened to the variety and depth
of your interests and concerns, and it was a particular pleasure to
meet with Senators from States where I have strong personal ties--
namely Oregon, Colorado, Georgia, and Louisiana. If confirmed, I look
forward to working with you on a wide range of international issues--
knowing they will have significant impacts on citizens of every State.
Specifically, the Under Secretary for International Affairs is
responsible for directing U.S. financial and economic relations with
foreign countries and managing our roles in multilateral financial
institutions such as the IMF and World Bank. The position also involves
supervising those charged with running the CFIUS process, coordinating
global financial regulatory standards, negotiating agreements affecting
the U.S. financial sector, providing technical assistance to foreign
financial systems, and protecting the trustworthiness of the U.S.
dollar. I am ready and eager to take on these important
responsibilities and believe my upbringing, education, and 40-year
career spanning government, finance, and economics have provided me
with a solid foundation.
I was raised in East Jordan, a small town in northern Michigan. My
great grandfather started an iron foundry there in 1883 that was
expanded by my grandfather, father, and the cousins I grew up with. The
East Jordan Iron Works (now EJ Co.) is a fifth-generation global
business, which still prides itself on productivity, hard work, good-
paying jobs, and strong communities.
After earning a degree in physics, I worked as a contract
administrator at Esco, a foundry in Portland, Oregon. We made high-
alloy steel used in digging equipment, nuclear castings, and pulp
mills. Both companies are emblematic of the challenges and
opportunities that will continue to face our economy in the coming
decades--they battle foreign competition yet have prospered through
innovation, flexibility, talented leadership, and strong, skilled
workers.
During the Reagan and first Bush Presidencies, I worked on economic
and international affairs at the Treasury and State Departments and
served on the staff of the Senate Budget Committee and the Joint
Economic Committee. I had the privilege of working for Secretary James
Baker and for Senators Pete Domenici and Bill Roth on many of the
economic issues of the 1980s and early 1990s--including the 1986 tax
reform act, the 1988 trade act, debt limit increases, and fiscal and
monetary policy. I also participated in the policy responses to the
Latin America debt crisis, the 1987 stock market crash, and the savings
and loan crisis. At the Treasury Department, I headed the Developing
Nations group, which was responsible for fiscal and monetary programs,
the multilateral development banks, debt restructurings, and the
securitization of debt through sovereign bonds.
After completing my government service, I moved to New York to work
for Bear Stearns on macroeconomic analysis, later becoming chief
economist. I subsequently started my own firm, Encima Global, which
produced research on monetary and fiscal policy, markets, and
currencies. I have written extensively for Forbes, The Wall Street
Journal, and other national publications on growth, ways to improve
spending and tax policies, the Federal Reserve, and currency stability
as a core path to higher living standards.
The theme of my upbringing, career, and publications is that
policies have a big impact on growth, jobs, and wages, and that a key
goal of fiscal and monetary policy development is to create higher
living standards for working and middle-income citizens in the United
States and around the world.
If confirmed, I will endeavor to fulfill my duties by working
closely with this committee, and others in the Senate and House of
Representatives in order to execute the law and develop sound
administration policies and initiatives. This would include helping our
domestic industries remain competitive while encouraging foreign
investment in the United States that creates more jobs here. I will
also work to promote sound policies abroad and more growth--these are
strongly in our national interest both in terms of markets for our
products and national security. Finally, our international policies
need to work toward broader prosperity--if confirmed, I will work to
build a stronger U.S. and global economy that raises real median
incomes.
Thank you again for the opportunity to appear before you today. I
am happy to answer any questions you may have.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): David Robert Malpass.
2. Position to which nominated: Treasury Under Secretary for
International Affairs.
3. Date of nomination: March 21, 2017.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: March 8, 1956, Petoskey, Michigan.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list secondary and higher education institutions, dates
attended, degree received, and date degree granted):
------------------------------------------------------------------------
Dates
Institution Attended Degree Received Degree Date
------------------------------------------------------------------------
Fellow, Georgetown 1983 Courses in None
University School of international
Foreign Service economics
------------------------------------------------------------------------
University of Denver 1977-1978 MBA May 1978
------------------------------------------------------------------------
Portland State 1976-1977 Courses in None
University accounting
------------------------------------------------------------------------
Colorado College 1973-1976 BA (physics) May 1976
------------------------------------------------------------------------
Moscow State 1975 Courses in Russian None
University
------------------------------------------------------------------------
Cornell University 1972 Courses in Russian None
------------------------------------------------------------------------
Fairview High School 1970-1973 Diploma May 1973
------------------------------------------------------------------------
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment):
Encima Global LLC, president, New York, NY, June 2008-February
2017.
JP Morgan, economist, New York, NY, March 2008-June 2008.
Bear Stearns, chief economist, January 2002-March 2008; Chief
International Economist, February 1993-January 2002, New York, NY,
February 1993-March 2008.
U.S. State Department, Deputy Assistant Secretary (Latin America
Economic Affairs), Washington, DC, June 1990-January 1993.
Joint Economic Committee, Republican Staff Director, Washington,
DC, March 1989-June 1990.
U.S. Treasury Department, Deputy Assistant Secretary (Developing
Nations), April 1988-February 1989; Legislative Manager, March 1986-
April 1988, Washington, DC, March 1986-March 1989.
Senate Budget Committee, Senior Analyst for Taxes and Trade,
International Economist, Washington, DC, January 1984-March 1986.
Self-employed, computer systems consultant, Portland, Oregon,
October 1981-September 1983.
Consolidated Supply Co., Controller/CFO, Portland, Oregon, October
1979-October 1981.
Arthur Andersen and Co., computer systems consultant, Portland,
Oregon, August 1978-October 1979.
Esco (Electric Steel) Corp., assistant contract administrator,
Portland, Oregon, November 1976-August 1977.
McDonald's breakfast chef, Boulder, Colorado, September 1976.
Regal Industries, industrial electrician, Long Beach, California,
June-July 1976.
10. Government experience (list any advisory, consultative, honorary,
or other part-time service or positions with Federal, State, or local
governments, other than those listed above): Member of Illinois Debt
Commission established by Senator Mark Kirk, 2006; and Member of
Congressional ``Blue Ribbon Panel on Dynamic Budget Scoring'' 2002.
11. Business relationships (list all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, other
business enterprise, or educational or other institution):
President, Encima Global LLC.
Partner, Vencerx Therapeutics LLC.
Director, GKCC, Gary Klinsky Children's Center.
Trustee, Manhattan Institute.
Director, New Mountain Finance Corp. (resigned March 2017).
Director, UBS Managed Municipal Trust.
Director, UBS Investment Trust.
Director, UBS Money Series.
Director, Pace Select Advisors Trust.
Director, UBS RMA Money Market Inc.
Director, UBS Master Trust.
Director, UBS RMA Tax-Free Fund Inc.
Director, Strategic Global Income Fund, Inc.
Director, Global High Income Fund Inc.
Director, Managed High Yield Plus Fund Inc.
In addition to the foregoing, as president of Encima Global LLC, I
was, in turn, engaged by a number of clients to provide economic
research and consulting services (as disclosed in my Form 278 filing).
12. Memberships (list all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable, and
other organizations): Member, Economic Club of New York; member,
Council on Foreign Relations.
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate.
Candidate for U.S. Senate, New York, 2010.
b. List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years.
Senior economic advisor, presidential campaign of Rudy Giuliani,
2008; senior economic advisor, presidential campaign of Donald Trump,
2016; treasurer, Grow Pac, 2010-2017 (a federal PAC); and treasurer,
Grow Pac, 2011-2017 (a NY state PAC).
c. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $50 or more for the past 10 years.
Malpass Political Contributions
Date Amount Recipient
3/31/07 $4,600 Giuliani, Rudolph W., via Rudy Giuliani
Presidential Committee Inc.
4/27/07 ($2,300) Giuliani, Rudolph W., via Rudy Giuliani
Presidential Committee Inc.\1\
6/14/07 $2,300 Giuliani, Rudolph W., via Rudy Giuliani
Presidential Committee Inc.
6/29/07 $2,300 Kirk, Mark Steven, via Kirk for Senate
6/29/07 $1,700 Kirk, Mark Steven, via Kirk for Senate
7/10/07 ($2,300) Giuliani, Rudolph W., via Rudy Giuliani
Presidential Committee Inc.\2\
7/10/07 $2,300 Giuliani, Rudolph W., via Rudy Giuliani
Presidential Committee Inc.
3/4/08 ($2,300) Giuliani, Rudolph W., via Rudy Giuliani
Presidential Committee Inc.\3\
5/21/08 $2,300 McCain, John S., via John McCain 2008, Inc.
5/21/08 $2,300 McCain, John S., via McCain-Palin
Compliance Fund
5/31/08 $2,300 McCain Victory 2008
7/31/08 $2,300 Republican National Committee
10/19/08 $500 Kirk, Mark Steven, via Kirk for Senate
9/22/09 $2,400 Kirk, Mark Steven, via Kirk for Senate
1/13/10 $2,000 NY State Conservative Party
1/28/10 $2,000 NY State Conservative Campaign Committee
2/5/10 $1,000 NY County Republicans
2/8/10 $1,000 New York Republican County Committee
2/22/10 $500 Queens County Housekeeping Account
3/8/10 $500 Malpass, David Robert, via David Malpass
for Senate
4/16/10 $300 National Republican Senatorial Committee
6/4/10 $150 Michael Faulkner via Michael Faulkner for
Congress
7/13/10 $2,300 Republican Campaign Committee of New York
(R)
8/29/10 $1,000 Erie County Republican Party
8/29/10 $100 Michael Faulkner via Michael Faulkner for
Congress
9/10/10 $1,000 Erie County Republican Committee-Finance
9/30/10 $100,000 Malpass, David Robert, via David Malpass
for Senate
9/30/10 $1,500,000 Malpass, David Robert, via David Malpass
for Senate
12/15/10 $7,000 Malpass, David Robert, via David Malpass
for Senate
12/30/10 $5,000 Malpass, David Robert, via David Malpass
for Senate
3/3/11 $9,000 Grow PAC
3/17/11 $1,000 Malpass, David Robert, via David Malpass
for Senate
6/24/11 $2,000 New York Republican County Committee
Housekeeping Account
7/1/11 $8,000 Grow PAC
7/7/11 $1,000 NY Conservative Party
8/4/11 $1,500 Lincoln PAC (Illinois)
8/9/11 $250 Friends of Paul Niehaus
9/21/11 $1,000 Grow PAC
9/22/11 $2,500 Perry, James R. (Rick), via Perry for
President, Inc.
11/3/11 $5,000 Grow PAC
1/19/12 $2,500 Romney, Mitt/Paul D. Ryan, via Romney for
President, Inc.
1/23/12 $200 Grow PAC
3/2/12 $500 Republican County Committee of New York
3/6/12 $400 NY Republican Federal Campaign Committee
3/9/12 $2,500 Mourdock, Richard E., via Hoosiers for
Richard Mourdock Inc.
6/4/12 $30,800 Republican National Committee
6/4/12 $2,500 Romney, Mitt/Paul D. Ryan, via Romney for
President, Inc.
6/9/12 $500 NY Republican Federal Campaign Committee
7/13/12 $500 Republican Campaign Committee of New York
(R)
7/27/12 $1,000 Altschuler, Randolph, via Randy Altschuler
for Congress
7/31/12 $4,150 Republican Party of Idaho (R)
7/31/12 $4,150 Oklahoma Leadership Council (R)
7/31/12 $4,150 Vermont Republican Federal Elections
Committee (R)
7/31/12 $4,150 Republican State Committee of Massachusetts
(R)
9/30/12 $500 Carvin, Joseph, via Carvin 2012
10/26/12 $10,000 National Republican Congressional Committee
(R)
10/26/12 $10,000 National Republican Senatorial Committee
(R)
11/1/12 $1,000 Flake, Jeff, via Jeff Flake for U.S. Senate
Inc.
11/4/12 $1,000 Brown, Scott P., via Fiscal Responsibility
PAC
1/18/13 $250 New York Republican County Committee
Housekeeping Account
2/13/13 $1,500 Lhota, Joseph J. (for Mayor of New York)
5/8/13 $630 Joe Lhota for Mayor, Inc.
6/10/13 $1,000 Gomez, Gabriel, via Gabriel Gomez for
Senate
7/27/13 $500 Lhota, Joseph J. (for Mayor of New York)
1/10/14 $1,900 Kirk, Mark Steven, via Kirk for Senate
1/28/14 $1,000 Grow PAC
3/31/14 $1,500 New York Republican County Committee
8/1/14 $500 Zeldin, Lee, via Zeldin for Congress
10/15/14 $2,000 Independent Women
11/26/14 $2,600 Cassidy, William M., via Bill Cassidy for
U.S. Senate
1/19/15 $500 Grow PAC
2/27/15 $150 Bronx County GOP
3/25/15 $800 Kirk, Mark Steven, via Kirk for Senate
3/25/15 $1,200 Kirk, Mark Steven, via Kirk for Senate
6/24/15 $2,700 Johnson, Ron Harold, via Ron Johnson for
Senate Inc.
6/30/15 $2,700 Bush, Jeb, via Jeb 2016, Inc.
6/30/15 $2,700 Portman, Rob, via Portman for Senate
Committee
6/30/15 $500 Kirk, Mark Steven, via Kirk for Senate
9/28/15 $2,700 Faso, John J., via Faso for Congress
5/19/16 $1,000 Zeldin, Lee, via Zeldin for Congress
\1\ Reattribution to spouse.
\2\ Redesignation to general.
\3\ Contribution refund.
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement):
Honorary doctorate, Colorado College, 2007.
Institutional Investor Allstar Analyst 2005-2007 (ranked second
among Wall Street economists in leading survey of institutional
investors).
Treasury Department commendation for work on 1986 tax reform (by
Secretary James Baker, October 3, 1986).
Certified Public Accountant, first licensed 1980.
University of Denver Dean's List each term, 1977-1978.
Colorado College Dean's List each term, 1973-1976.
Colorado College Physics Department's nominee for Danforth
Fellowship.
Colorado College grant for study in USSR, 1975.
Boettcher Foundation Scholar, 1973-1978.
National Merit Scholar finalist, 1973.
15. Published writings (list the titles, publishers, and dates of all
books, articles, reports, or other published materials you have
written):
Malpass Publications
Publication Title Date
Policy Change
Forbes Democracies in Upheaval 12/30/16
Forbes Trump-Clinton 9.0 Earthquake 11/29/16
Forbes Eight Outrages Urge Trump to Upend 10/4/16
Washington
NY Times Why Our Economy Needs Trump 9/1/16
Forbes Trump Using Public's Anger 7/26/16
Forbes Upheaval to Reinvent U.S. Politics 5/10/16
Forbes Can 2016 Be Salvaged for 2/8/16
Investors?
Forbes More Government, Less 5/4/15
Representation
Forbes Peace Through Weakness? 7/21/14
Forbes IRS Scandal is Tip of the Iceberg 6/24/13
Forbes Corruption Scandals Rock Big 5/6/13
Governments
Forbes The Battle to Limit Government 2/11/13
WSJ Romney, Obama, and the Economic 11/6/12
Choice
Forbes Pushing Back a Government Centered 5/21/12
Society
WSJ And the Crisis Winner is 12/16/11
Government
Forbes The Enemy Within 5/23/11
Forbes Class Warfare Hurts Growth 5/12/11
Forbes Congress Must Hit the Ground 11/22/10
Running
Forbes Restoring America's Growth 9/27/10
Forbes Shakedown 6/28/10
Forbes Washington Possessed 5/10/10
Forbes Need Game Changers, Not ``New 7/13/09
Norm''
Forbes Crisis Rules 2/16/09
Forbes Containing Washington's Power 11/10/08
Bulge
Federal Reserve
Cato Preventing Bubbles: Regulation Fall 2011
Versus Monetary Policy
WSJ Pro-Growth Tools for the Frozen 10/7/16
Fed
WSJ More Fed Bond Purchases Are the 8/30/16
Wrong Answer
NY Sun New Course for the Fed Is Growing 2/25/16
More Urgent
WSJ Don't Blame the Fed's Interest- 2/11/16
Rate Baby Step
Testimony Cato Monetary Conference--Post 11/12/15
Monetarism: Fed's Growth Options
Forbes Fed Should Raise Rates to Loosen 9/28/15
Policy
WSJ The Federal Reserve Pulls a Lucy 9/18/15
NY Sun Fed Awaits the Moment to End Zero 8/29/15
Interest and Waits
NY Sun Right Move for the Fed is Hike in 8/20/15
Interest Rates so Markets Come
Alive
Forbes New Course for the Federal Reserve 7/20/15
WSJ Fed Rate Forecast: Cloudy With a 3/21/15
Chance of Slower Growth
Forbes Lower Inflation--Another Chance 2/9/15
for Government Mistakes
WSJ The World's Monetary Dead End 1/22/15
Forbes Big Fed is Big Government 11/24/14
WSJ Growth Management Isn't Fed's 10/16/14
Forte
WSJ The Fed is Looking Like a 9/8/14
Sovereign Wealth Fund
WSJ Now is the Time to Raise Interest 6/9/14
Rates
Forbes Monetary Policy Relief Finally 5/5/14
Adding Growth
WSJ The Fed's Taper is Already Paying 3/14/14
Off
Forbes The American Income Crisis: The 9/2/13
Fed Could Stop It
Cato Cato Journal Fall 2013--Fed Needs 9/1/13
to Change Course
WSJ The Federal Reserve and M2 Figures 6/7/13
WSJ Fed Policy is a Drag on Recovery 5/30/13
Testimony Testimony to House Financial 3/5/13
Services Committee on Fed Policy
E21 Monetary Policy, QE4, and the Next 1/23/13
Era of the Federal Reserve
Testimony Cato Monetary Conference: Fed is 11/15/12
Contractionary
Forbes Smaller Government Fed Should 9/24/12
Shrink, Too
Bush Center The ``Bernanke Put'' 9/19/12
Bush Center Twisting the Market 8/20/12
Bush Center A New Twist on an Old Story 7/3/12
WSJ The Fed ``Twist'' That Won't Dance 9/21/11
WSJ How the Fed is Holding Back 10/19/10
Recovery
Forbes Fed Should Go Back to Basics 2/8/10
WSJ Near-Zero Rates Are Hurting the 12/4/09
Economy
National Review The Fed Lacks Urgency 3/24/09
Cato Cato: Monetary Policy and the 6/22/07
Growing Fiscal Imbalance
Fincl Executive A World of Liquidity 11/29/06
WSJ Fed-Side Manner; Interest Rates 5/11/06
Too Low
Fortune Surviving Rate Hikes Will Be 3/8/04
Easier Than You Think
Testimony House Financial Services Committee 4/30/03
Testimony on econ/monetary policy
WSJ Fed's Moment of Weakness 9/25/02
Currencies
WSJ China Declares Currency 8/15/15
Independence
WSJ Fed Policy is a Drag on Recovery 5/31/13
WSJ Ron Paul, the Fed, and the Need 1/26/12
for a Stable Dollar
WSJ Beyond the Gold and Bond Bubbles 8/31/11
WSJ Weak Dollar, Weak Economy 8/5/11
WSJ Weak-Dollar Threat to Prosperity 10/8/09
Forbes Debt, Deficits, Dollar Weakness 4/27/09
WSJ Bush and the Dollar 3/11/08
WSJ Markets and the Weak Dollar 1/14/08
WSJ Lifelines for the Drowning Dollar 11/9/07
WSJ Drooping U.S. Dollar--Medicine or 12/16/04
Poison?
Cato Cato Journal--Exchange Rate 10/14/05
Protectionism
WSJ The Willy-Nilly Dollar 2/11/04
WSJ Brazil's Currency Lesson for the 12/5/03
U.S.
WSJ The Euro's Broken Promises 10/21/02
WSJ Strengthening the Euro Isn't 9/27/00
Rocket Science
WSJ The ECB's Policy Is Obviously Not 5/8/00
Working
WSJ Time to Tame Exchange Rates 12/3/99
Cato Cato speech, Replacing the Vacuum 10/21/99
in International Economic Policy
Testimony Senate Banking testimony on 7/15/99
Dollarization
Testimony House Banking testimony 5/20/99
International Financial System
WSJ Dawn of the Euro: New Money Will 1/6/99
Bring Smaller Government
EWSJ Choose Currency Stability 10/8/98
WSJ Beating Back the Bear: U.S. Needs 9/2/98
to Promote Currency Stability
EWSJ A Stable Dollar Is the Key 8/26/98
(Russia's Devaluation)
WSJ Asia's Reckoning: A Weak Economy 6/17/98
Needs a Strong Currency
WSJ Asia's Reckoning: The Road Back 1/14/98
From Devaluation
WSJ Can the U.S. Weather Asia's Storm? 1/5/98
WSJ Floating Into Monetary Trouble 7/23/97
WSJ Whither the EMU? 6/20/97
WSJ Currency Stability on the March 12/20/96
IMF/G7/Globalism
WSJ G20 Speed Dating in Los Cabos 6/20/12
WSJ Greece's False Austerity 5/23/12
WSJ G7 Meeting: Heads Up, Seven Up 2/21/03
WSJ A Radical Idea: The IMF Should 12/28/01
Promote Growth
WSJ The IMF Gets it Wrong Again 8/17/01
WSJ The G7's Missed Opportunity 2/23/99
WSJ Break the IMF Shackles 9/26/97
WSJ G7's Signal: Inflation Ahead 7/11/94
WSJ Successful Latin Economies Show 1/29/93
the Gain Before the Pain
WSJ Europeans Should Look West for 9/25/92
Advice on Sound Money
WSJ Does the IMF Deserve More Money? 10/18/89
Growth and Development
Testimony Testimony to House Financial 5/17/16
Services on Slow Outlook
E21 Encima Global Projects World GDP 11/12/14
Will Drop in 2015
NY Post America's Ugly New Two-Tiered 9/15/14
Economy
Forbes Returns Set to Plunge 9/8/14
Forbes Five Steps to Faster Global Growth 2/10/14
WSJ How Big Government Drives 1/16/14
Inequality
WSJ The Economy Is Showing Signs of 7/23/13
Life
Bush Center Circling the Cliff 2/1/13
Bush Center Don't Rely on Lame Ducks 2/1/13
WSJ Economic Signals Point to a 2013 9/29/12
Recession
Bush Center Stimulus Means Slow Growth 8/3/12
Bush Center Slow Growth, No Recession 7/26/12
WSJ The LIBOR Scandal's Threat to 7/11/12
Growth
Bush Center Private-Sector Gloom 7/11/12
Bush Center Jobs Need a Jolt 6/8/12
Bush Center Housing Contributes to Recovery 5/29/12
Bush Center Getting to the Root of Stagnant 5/18/12
Wages
Bush Center Greater Consumption/Lower 5/4/12
Investment Raise Doubts About
Future Growth
Bush Center Household Survey Leads Upswing in 3/16/12
Job Growth
Bush Center Personal Income: Show Me the Money 3/9/12
Bush Institute Chapter 7 From ``4% Growth 3/1/12
Solution:'' Sound Money, Sound
Policy
WSJ America's Troubling Investment Gap 7/5/11
FoxNews.com What Jobs Numbers Mean for America 6/3/11
WSJ The Panic, Round Two: What Would 5/26/10
Reagan Do?
WSJ The Euro's Greek Tragedy, and its 2/27/10
Lessons for America
Forbes Seriously Off Track 11/30/09
Forbes Armageddon Averted--Or Was It? 9/7/09
WSJ Did the Fed Cause the Housing 3/27/09
Bubble? The Fed Provided the Fuel
National Review Path to Recovery 1/14/09
Forbes Reagan Redux--Ending America's 9/29/08
Malaise
Forbes Investing Post-Bush 7/21/08
Forbes Credit Crisis Hits Home 4/21/08
Forbes A No-Lame-Duck Growth Agenda 1/28/08
Forbes Washington: Out of Tune With 11/26/07
Growth
Forbes How Hard a Landing? 10/1/07
American Spectator AEI: Running on Empty? 9/1/07
WSJ Don't Panic About the Credit 8/7/07
Market
WSJ Global Boom 4/9/07
NY Sun Down Because it Was Up 2/28/07
Testimony Senate Budget testimony on outlook 2/1/07
American Spectator AEI: The Late Landing 11/20/06
National Review Inflation Remains the Key Variable 6/30/06
WSJ Job, Jobs, Jobs 4/6/06
National Review An Expansion With Staying Power 2/10/06
National Review Here We Go Again? 12/6/05
WSJ Sailing Past Katrina 9/22/05
WSJ So This Is a Weak Economy? 6/28/05
American Spectator It's About as Radical as IRAs: 4/1/05
Social Security Reform Should
Sell Itself
WSJ Running on Empty? 3/28/05
WSJ Bush and Social Security Reform 1/14/05
WSJ Opposite of a Lame Duck? 1/14/05
WSJ We Grow, They Grow 11/3/04
NY Sun Bush's Durable Market 8/23/04
WSJ Their Money, Our Strength 8/5/04
WSJ The ``I'' Word: Inflation 6/18/04
Forbes Trade Deficit? So What? 12/8/03
WSJ Bullish on America 6/7/02
Testimony Senate Banking testimony: Global 3/12/02
Outlook, Monetary, and Fiscal
Policy
Heritage Foundation A New Agenda for America 12/28/01
Report
Forbes Antidote to the Downgrade 9/26/01
WSJ Leadership Vacuum in International 4/21/99
Economics
Bloomberg Books Chapter 3 From Flying on One 6/27/05
Engine: America's Optimistic
Future
Budget, Taxes and Debt Limit
Forbes The Republican Fiscal Divide 11/23/15
Forbes Government Wins Big--Country Needs 11/18/13
a New Debt Limit
WSJ The Bigger Battle Behind the 10/10/13
Shutdown
Testimony Testimony to Joint Economic 9/18/13
Committee on Debt Limit
WSJ A Debt-Ceiling Strategy for the 8/30/13
GOP
WSJ The Obama Budget's Economic 4/11/13
Message
Testimony Testimony to Senate Budget on 2/26/13
Impact of Federal Spending on
Growth
WSJ Nothing Is Certain Except More 1/2/13
Debt and Taxes
NY Sun Going Over Fiscal Cliff 12/31/12
Forbes Constitution Eroding: Need Rules 12/10/12
to Restrain Government
Bush Center The Overbearing Rule Book is What 4/16/12
Blocks True Tax Reform
Forbes U.S. Needs a New Debt Limit 2/27/12
FoxNews.com A Proper Debt Limit Would Cause 6/27/11
Pain in DC, Not Debt Default
NY Sun Republicans Could Lose the House 6/7/11
Over Debt Limit
WSJ A Smarter Debt Limit Strategy 6/1/11
Forbes Reflections on the Budget 2/28/11
WSJ After Obama's Budget, Republicans 2/16/11
Need a New Strategy
Washington Times Truth/Dare: Rather Than Cut 2/1/11
Spending, Obama Bets on World
Overlending
Testimony Testimony to Senate Budget 2/1/11
Committee on fiscal policy
Washington Times Debt Limit Opportunities 1/17/11
Forbes The High Cost of the U.S. Budget 2/8/10
Forbes The Washington Tax Mess 7/23/07
Forbes Recession, Taxes, and Moral Hazard 4/16/07
WSJ Budget Strain 2/27/07
Forbes The Triple Deficit Paralyzes 1/29/07
Policy Vision
WSJ Embrace the Deficit (and the 12/21/06
Capital Surplus That Goes With
it)
Cato Cato speech: The Growing Fiscal 11/16/06
Imbalance/Future of Monetary
Policy
Testimony Senate Finance Testimony on 6/30/05
Extending Bush Tax Cuts
FT Don't Blame the Deficits for 5/4/04
America's Rate Hikes
Testimony Senate Budget Committee testimony 1/29/03
on economic outlook
Testimony Rules testimony on the budget 5/2/02
Testimony JEC testimony on taxes 3/9/00
Testimony Senate Budget testimony on 1/22/97
balanced budget amendment
Foreign Economies and Growth
Bush Center Europe on the Brink 9/25/12
Bush Center Europe Kicks the Can 7/13/12
Bush Center Europe's Worsening Fiscal Spiral 4/27/12
Bush Center How to Avoid the Fate of Greece 3/1/12
WSJ How the EuroZone Can Restore 10/26/11
Confidence
Inter-American Was the Time Right to Award Brazil 5/2/08
Dialogue Investment-Grade Status?
WSJ Japan's Monetary Policy: Hanging 7/21/06
Loose
WSJ Welcome Back, Japan 3/14/06
ViewPoint Americas Latin America Needs Sound Money to 12/9/03
Grow
Testimony House Ways and Means testimony on 10/31/03
China
WSJ Brazil: Where's the Growth? 6/21/02
WSJ Investors Have a Question for 6/21/02
Brazil: Where's the Growth?
WSJ Argentina Markets Give Cavallo 3/23/01
Redux a Bad Review
WSJ South America Has Suffered From 10/6/00
White House Neglect
WSJ This Time Maybe Brazil Really Does 7/21/00
Have a Future
WSJ Wrong Battle for Europe 11/6/98
Testimony Japan testimony to Senate Budget 4/28/98
Committee
WSJ The Mexican Peso: 3.5 or Bust 1/11/95
WSJ Zhu Rongji: The Man Who's Saving 7/29/93
China From Soviet-Style Disaster
U.S. Department of Economic Reconstruction in Cuba 6/1/92
State
16. Speeches (list all formal speeches you have delivered during the
past 5 years which are on topics relevant to the position for which you
have been nominated):
Testimony to House Financial Services on slow growth outlook,
May 17, 2016.
Cato Conference ``Post Monetarism: Fed's Growth Options,''
November 12, 2015.
Testimony to Joint Economic Committee: ``Need to Rewrite Debt
Limit,'' September 18, 2013.
Testimony to House Financial Services Committee on Fed policy,
March 5, 2013.
Testimony to Senate Budget Committee: ``Impact of Federal
Spending on Growth,'' February 26, 2013.
Cato Monetary Conference ``Fed Is Contractionary,'' November 15,
2012.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
I bring extensive government and private-sector experience in the
global financial system, central bank policy, exchange rate systems,
country growth programs, and international finance. I have significant
past experience in the IMF, the MDBs, trade negotiations, CFIUS, debt
restructurings, and the legislative and budget processes. I believe
this economic experience will help me be effective in working within
the administration and with the Congress on important policy matters.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections with your present employers,
business firms, associations, or organizations if you are confirmed by
the Senate? If not, provide details.
Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
None. During the course of the nomination process, I have engaged
in detailed discussions with career team ethics staff and the Office of
Government Ethics regarding potential issues arising out of my
financial holdings, past income, and past employment relationships.
These have been addressed in my ethics agreement. I am not aware of any
other potential conflicts of interest.
2. Describe any business relationship, dealing or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
None.
3. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy. Activities
performed as an employee of the Federal Government need not be listed.
As a columnist and economic analyst, I have been extensively
involved in public policy debates regarding economic growth, tax
reform, fiscal restraint, and policy reform. In addition to my regular
media columns, this includes engagement through congressional
testimony, numerous articles and speeches, and membership in policy-
focused organizations such as the Economic Club of New York and the
Council on Foreign Relations. I have also regularly appeared as a
policy commentator on various cable and network channels, including
CNBC, Fox Business, Bloomberg News, and C-SPAN.
4. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Provide the committee with two copies of any trust or other
agreements.)
I have executed an ethics agreement following detailed discussions
with career ethics staff in the Treasury Department and the Office of
Government Ethics and will abide by the terms of such agreement. In
addition, I am committed to following all applicable ethics laws. If I
identify a potential conflict of interest, I will consult with ethics
counsel.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency,
professional association, disciplinary committee, or other professional
group? If so, provide details.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county or municipal law, regulation, or ordinance,
other than a minor traffic offense? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
Yes. I was included as a party in a civil case regarding a rent
dispute. Our former landlord sued my wife and me in 2004 for an extra
year's rent after our departure from our former apartment on East 68th
Street. In an order issued in 2008, the presiding judge found that we
properly exercised the right to terminate the lease, dismissed the
landlord's claims, and awarded us attorney's fees. On appeal, the
dismissal of the landlord's claims was upheld, while the decision
regarding attorney's fees was reversed.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to David Malpass
Question Submitted by Hon. Orrin G. Hatch
Question. Mr. Malpass, I expect you to work closely with the U.S.
Trade Representative to pursue high-standard trade agreements that
enhance economic opportunities for American businesses and consumers.
No sector--including financial services--should be excluded from our
efforts.
Do you agree that financial services play an essential role in
facilitating trade and investment and therefore must not be excluded
from market access expansions, regulatory cooperation initiatives, and
protections for cross-border data flows?
Answer. If confirmed, I look forward to working with the U.S. Trade
Representative to pursue high-standard trade agreements. Financial
services play a critical role in facilitating investment and other
economic activity, and I understand that most trade agreements contain
a financial services chapter with obligations that enable new market
access opportunities for U.S. firms and work toward a level playing
field. If I am confirmed, I will support the continued inclusion of
financial services chapters, and will look for additional ways to
enhance the effectiveness of this process.
______
Question Submitted by Hon. John Thune
Question. The office of Treasury Under Secretary for International
Affairs has significant responsibilities that intersect with other
departments and agencies within the Federal Government, including the
Departments of Commerce and State as well as the U.S. Trade
Representative. How do you foresee coordinating your efforts with these
other offices, in particular with respect to the President's trade
agenda?
Answer. If confirmed, I will work closely with other departments
and agencies on the President's trade agenda. I look forward to
coordinating our efforts, including following the related statutory
requirements under U.S. trade law.
______
Questions Submitted by Hon. Ron Wyden
real median income growth
Question. Mr. Malpass, I was encouraged in our meeting to hear your
views on a key priority you and I share, and in which I think many
Democrats and Republicans can find common ground. And that's making
sure economic growth is shared at all income levels.
I believe under the current tax code we have a tale of two tax
systems--a mandatory system that takes money out of workers' paychecks
and a system that allows the most fortunate to pay what they want when
they want.
I believe tax reform should give everyone the chance to get ahead.
I understand you have written articles about how it's not only
important to grow the economy overall (GDP), but also to grow workers'
paychecks.
Please elaborate on your views on why that's important and how tax
reform can best achieve the goals of growing the economy and achieving
real benefits for the middle-class, including growth in real median
incomes.
Answer. Economists often measure success in terms of GDP growth
rates and the change in per capita income. However, these measures
aren't a clear indication of economic progress. I think a better
measure of economic progress is after-tax real median income, meaning
the inflation-adjusted income or wage of the middle of a society, after
taxes and government-imposed fees are deducted.
Your question focuses on tax policy, which can hold back real
median income in at least two ways. First, as your question suggests,
middle-income taxes are high and hard to avoid or reduce. One key goal
of tax reform should be to lower the tax rate on middle-income
taxpayers. Second, tax policy may be an obstacle to job growth--my view
is that one of the best ways to increase real median income is through
high business demand for middle- and lower-income jobs and the workers
needed to fill them. Our current tax code creates several major
obstacles to middle-income job creation including: (1) the high
corporate income tax rate, which discourages investment and job
creation in the United States; (2) the complexity of the tax code,
costing billions of hours in compliance costs even for middle-income
earners; and (3) the many tax barriers to the formation and growth of
small businesses, which create many of the low- and middle-wage jobs
that are critical to raising real median incomes.
Question. In 2016, President Obama signed into law new disciplines
and criteria for dealing with currency manipulation that were written
by the Finance Committee.
It also established the Advisory Committee on International
Exchange Rate Policy, which is responsible for advising Treasury on the
impact of international exchange rates and financial policies on the
United States.
But this committee has not been set up yet, despite the fact that
Democrats have put forward their candidates for membership.
If confirmed, will you work with me to stand up this committee?
Answer. If confirmed, I look forward to working with you, the
Finance Committee, and my colleagues in Treasury to meet the
obligations created by the law and regulations related to this advisory
committee.
Question. Mr. Malpass, in 2006 you wrote an op-ed in The Wall
Street Journal entitled ``Embrace the Deficit'' in which you argue that
the U.S. trade deficit is actually a ``positive part'' of the U.S.
growth outlook, and that the trade deficit's role as a political
``lightning rod'' is not born out in reality. It is the position of
this administration, and the President personally, that trade deficits
are bad for the U.S. economy, and that it should be a primary goal of
our trade policy to reduce that deficit. Given your views as expressed
in the op-ed, do you agree with that position or would you advise the
President to reconsider his approach?
Answer. In theory, trade deficits can be the result of one country
growing and investing faster than its trading partners, causing its
imports to grow faster than its exports and allowing the country's
annual investment to exceed its additions to savings. That was the
argument made in the 2006 article. In practice, and especially in the
last decade, trade agreements have come to play an increasing role in
the development of exports, imports and investment flows. Well-crafted
trade agreements should work in the U.S. interest by reducing trade
barriers to U.S. exports and encouraging commerce, whereas some of the
agreements have placed harmful burdens on commerce and biased the U.S.
economy toward products and services made abroad. That has been a major
problem for U.S. job growth within the last decade and can be addressed
by improving the existing trade agreements and making sure that future
trade negotiations are in the best interest of American workers and the
United States.
______
Questions Submitted by Hon. Debbie Stabenow
Question. China and other countries like Japan have a long history
of manipulating their currencies, hurting American workers and
manufacturers. Some reports indicate as many as 5 million jobs, many of
which are manufacturing jobs, have been lost due to currency
manipulation and other unfair barriers and practices.
How will you successfully deal with countries such as China and
Japan that have a long history of manipulating their currencies?
Answer. I place a very high priority on ensuring that American
workers and companies face a level playing field when competing
internationally. When our trading partners engage in currency
manipulation, they impose significant, and often long-lasting, hardship
on American workers and companies.
If I am confirmed, I will be vigilant and be ready to combat
currency manipulation and practices that facilitate currency weakness
and unfair competitive advantage.
Question. What tools would you use to stop our trading partners
from subsidizing their exports and violating their agreements?
Answer. The administration as a whole has several tools to stop
improper foreign export subsidization, offset it, and enforce trade
agreements. If confirmed, I will be an active participant in those
efforts, and I am committed to ensuring that unfair currency practices
are identified and addressed.
Question. Will you support the inclusion of strong and enforceable
currency provisions in future trade agreements?
Answer. I am committed to ensuring that unfair currency practices
are identified and combated. If confirmed, I will work with Congress to
ensure that trade negotiations are consistent with congressional
guidance on trade policy priorities and negotiating objectives, as
outlined under Trade Promotion Authority, including those applicable to
currencies.
Question. Will you support including enforceable currency
disciplines in a NAFTA renegotiation?
Answer. If confirmed, I will work with my colleagues in the
administration and with Congress to ensure that a NAFTA renegotiation
is consistent with congressional guidance on trade policy priorities
and negotiating objectives, as outlined under Trade Promotion
Authority, including those applicable to currencies.
Question. Do you believe the CFIUS process needs to be reformed to
keep up with the increasing volume of purchasing activity we're seeing
from Chinese SOEs?
Answer. The Committee on Foreign Investment in the United States is
tasked with reviewing foreign transactions in the United States and
their national security implications. The growth in acquisitions of
U.S. companies by state-owned enterprises (SOEs)--in particular,
Chinese SOEs--raises a number of important issues that may have
national security concerns.
With respect to potential CFIUS reforms, it is important that we
evaluate, given the changing national security environment, whether the
government has, and is properly exercising, the appropriate tools to
address any current and emerging national security risks. I understand
that the Treasury Department is carefully considering whether any steps
are necessary to further enhance CFIUS authorities and, if so, what
steps would be most effective in addressing specific emerging national
security risks. If confirmed, I am committed to supporting this
initiative.
Question. If yes, are you committed to working with members of
Congress to reform and modernize the CFIUS process to ensure that all
sectors of the economy are represented on the panel, including making
USDA and HHS permanent members of CFIUS?
Answer. If confirmed, I am committed to reviewing the current CFIUS
process and working with members of Congress, as well as members of the
administration, to address new challenges faced by CFIUS in a careful
and deliberate manner. This would include making sure that relevant
expertise across the government is brought to bear in an appropriate
manner.
______
Questions Submitted by Hon. Bill Nelson
Question. What do you believe is the greatest challenge facing the
G20?
Answer. The G20 has an important role to play in encouraging
policies that support strong and balanced global growth and a level
playing field for U.S. workers and businesses at a time when global GDP
growth has been disappointing and global imbalances have persisted.
Question. How would you seek to overcome that challenge?
Answer. As discussed in my statement to the committee, a key goal
of fiscal and monetary policy development is to create higher living
standards for working and middle-income citizens around the world. If
confirmed, I will endeavor to fulfill my duties by working closely with
this committee, and others in the Senate and House of Representatives
in order to execute the law and develop sound administration policies
and initiatives, including in the G20, which work toward broader
prosperity.
Question. What do you believe can be done to stop countries from
manipulating their currency for a trade advantage?
Answer. I place a very high priority on ensuring that American
workers and companies face a level playing field when competing
internationally. Though there has been a trend in the last 2 years
toward reduced currency intervention by key trading partners, it is
critical that we remain vigilant in monitoring and combating currency
manipulation and practices that facilitate currency weakness and unfair
competitive advantages. If confirmed, I will help to lead these
efforts, and I am committed to ensuring that unfair currency practices
are identified and addressed.
______
Questions Submitted by Hon. Robert Menendez
Question. Mr. Malpass, President Trump has affirmed that Secretary
Mnuchin is the administration's point person with regard to the debt
limit. Secretary Mnuchin has said in testimony before the House Ways
and Means Committee that he wants Congress to pass a clean debt limit.
I know you have published a large number of op-eds regarding the debt
limit, and I want to know if you can commit to supporting the President
and Treasury Secretary in your efforts to pass a clean debt limit
increase?
Answer. The administration has indicated that it is important to
raise the debt ceiling as soon as possible. I am aware that Secretary
Mnuchin has urged Congress to pass a clean debt ceiling increase prior
to the August recess, and I fully support the President and Treasury
Secretary in this matter. If confirmed, I commit to supporting their
efforts.
Question. I have been an outspoken critic of the dictatorship in
Venezuela, and I have serious concerns about the country's intensifying
humanitarian and financial crisis. The United States cannot stand idly
by as Venezuelans continue to suffer under the Maduro regime's failed
economic and social policies. I have called on the administration to
sanction the brutal thugs who are profiting off of starving their own
people.
As such, I have real concerns about Venezuelan debt, the real
possibility of default, and transactions specifically involving
Venezuela's state-owned oil company, PdVSA. In particular, I raised to
Secretary Mnuchin the issue of the potential for Rosneft, Russia's
state-owned oil company, to acquire an ownership interest in critical
energy infrastructure in the United States due to PdVSA's pledge of
49.9 percent of Citgo shares to Rosneft as collateral for a loan.
I was particularly alarmed to learn last week of Goldman Sachs'
purchase of $2.8 billion in PdVSA bonds. I worry that this purchase
ultimately serves to prop up the corrupt and brutal Maduro regime. I'd
note that Goldman Sachs is certainly not the only U.S. financial firm
that has made significant investments in Venezuelan debt.
Are you concerned by U.S. financial firms' investments in
Venezuelan debt, and that such investments extend a lifeline to the
Maduro regime?
Answer. I share your concerns about the humanitarian crisis,
widespread repression, and systemic corruption in Venezuela. As
Secretary Mnuchin has noted, the Venezuelan people are suffering from a
collapsing economy brought about by their government's mismanagement
and corruption.
Reflecting these concerns, Treasury has imposed targeted sanctions
against Venezuelan nationals, including government officials, who have
engaged in activities such as human rights violations, undermining
democratic governance, and narcotics trafficking.
Although I am not familiar with the details of the transaction you
mention or how much it benefitted the Maduro regime, my understanding
is that the Venezuelan regime is making many efforts to sell debt,
including to Americans, at high interest rates and large discounts,
while American firms, such as those in the petroleum sector, may have
royalty arrangements that convey benefits to the Venezuelan regime.
These raise clear financial and reputational risks for private sector
market participants.
If confirmed, I look forward to working with Congress and
colleagues in the administration to advance policies that protect U.S.
interests and contribute to improving the situation in Venezuela.
Question. Mr. Malpass, if confirmed, you will play an important
role in implementing America's foreign policy priorities. One such
priority, according to the President and an overwhelming bipartisan
majority of the Congress, is the fight against human trafficking.
Trafficking is a $150 billion a year crime with over 20 million victims
around the world today. Specifically, as Under Secretary for
International Affairs you will have the ability to exert influence on
the multilateral development banks, to get them to leverage their
projects in smart ways that prevent trafficking and encourage borrowing
countries to increase their own efforts to fight trafficking.
If confirmed, will you commit to working to leverage the United
States' influence on the multilateral development banks to fight human
trafficking?
Answer. I share your concerns about human trafficking. The United
States has substantial influence in the MDBs to advance our policy
priorities, including the fight against the scourge of human
trafficking. I understand that the Treasury Department has been
implementing existing legislation that instructs the U.S. Executive
Director, pursuant to a Presidential determination, to vote against MDB
projects in trafficking countries. If confirmed, I would work to
strengthen the impact of this mandate, further encourage the anti-
trafficking efforts of the MDBs and our international partners, and
make progress in the fight against human trafficking.
Question. Mr. Malpass, another area where you can have a profound
impact on the fight against human trafficking is by working to ensure
that international criminal networks don't have access to the financial
system to perpetuate their crimes.
Will you commit to working to limit human traffickers' access to
the financial system?
Answer. My understanding is that Treasury is committed to
safeguarding the U.S. and international financial systems from all
forms of illicit use, including by human traffickers. Treasury's Office
of Foreign Assets Control (OFAC) and Financial Crimes Enforcement
Network (FinCEN)--which are components of the Office of Terrorism and
Financial Intelligence (TFI)--use an array of tools and authorities to
deter and combat human trafficking. The financing of human trafficking
often involves criminal networks located in different countries.
Treasury has historically recognized the reliance of such criminals on
the U.S. and international financial systems. If confirmed, I will
support Treasury's efforts to limit their access to the financial
system and disrupt their finances.
Question. Mr. Malpass, I know that China hasn't been manipulating
its currency over the past 6 months or so, but now that the
administration has decided not to name China a currency manipulator,
how do you plan to raise the costs of such behavior to ensure that they
do not start manipulating again?
Answer. I place a very high priority on ensuring that American
workers and companies face a level playing field when competing
internationally. When our trading partners engage in currency
manipulation, they impose significant, and often long-lasting, hardship
on American workers and companies.
Though there has been a trend toward reduced currency intervention
by key trading partners, it is critical that we remain vigilant. If
confirmed, I will support efforts to scrutinize China's trade and
currency practices very closely and commit to monitoring and combatting
currency manipulation and practices that facilitate currency weakness
and unfair competitive advantages.
______
Questions Submitted by Hon. Sherrod Brown
Question. When asked about the U.S.'s role in international
financial regulatory bodies, Secretary Lew said that he is ``proud that
the United States is a leader, that we have taken decisive action, the
most decisive action of any country in the world after the deep
recession and economic crisis of 2008 and 2009'' and that ``we should
make a call to the world community in the appropriate fora, like the
G20 and the FSB to try and drive that race to the top.'' Will you
commit to me that the U.S. Treasury Department (including FSOC and FIO)
will continue to advocate for higher standards of financial regulation
in all international bodies, including the G20, the FSB, the Basel
Committee, the IAIS, and IOSCO, and that we will not acquiesce to any
efforts to roll back the reforms that have already been agreed to?
Answer. One of President Trump's Core Principles for Financial
Regulation is to advance American interests in international financial
regulatory negotiations and meetings. The international standard
setting process is one of the key ways that the administration and U.S.
regulators can promote financial stability that benefits the U.S. and
global economy as well as a level playing field that benefits U.S.
firms. Like the FSOC, the international bodies are also monitoring
implementation of regulatory reform, adjusting standards that may have
unintended and undesirable consequences, and remaining vigilant for new
or emerging vulnerabilities.
Question. If confirmed, one issue you will need to address is the
U.S./EU Covered Agreement. Some have suggested that the agreement is
clear on its face, while others believe that, before the United States
signs the agreement, the United States and EU must clarify certain
issues through an exchange of letters. What is your view of the covered
agreement, including whether it achieves the stated objectives of U.S.
negotiators when they notified Congress of their intent to enter into
these negotiations back in November of 2015 or needs further
clarification?
Answer. This is an important and complicated issue. I understand
that Secretary Mnuchin has asked Treasury staff to meet with a number
of stakeholders on the covered agreement to hear their perspectives. If
confirmed, I will give utmost consideration to the issues you raise. I
look forward to discussing the covered agreement and the various views
with Treasury staff, and providing appropriate communication with the
committee.
______
Questions Submitted by Hon. Michael F. Bennet
Question. Mr. Malpass, I am deeply concerned about some recent
statements that imply that failing to increase the debt limit by the
time extraordinary measures are exhausted and cash balances are down to
critically low levels would not be a catastrophic mistake. I appreciate
Secretary Mnuchin's expressions that the debt limit needs to be raised
without delay and without unrelated policy conditions. I was heartened
to see reporting that suggests President Trump agrees.
Mr. Malpass, do you believe that all of the obligations of the
United States should always be paid on time and in full, as we have
done throughout our history?
Answer. I believe the government must meet all of its outstanding
obligations, and for this reason I understand that Congress has always
acted to raise the debt limit when necessary.
Question. Mr. Malpass, do you believe that the debt limit should be
raised well in advance of any deadline and that it should not be held
hostage to unrelated policy demands?
Answer. I believe it is important for Congress to raise the debt
ceiling as soon as possible.
Question. Mr. Malpass, do you believe that prioritization of
interest payments over the government's other obligations is either an
advisable or workable solution if the debt limit is not raised by the
time extraordinary measures and cash balances have run out?
Answer. I am confident that Congress will act on the debt limit in
a timely manner to ensure the full faith and credit of the United
States Government and to enable us to avoid confronting the situation
raised in your question.
______
Questions Submitted by Hon. Robert P. Casey, Jr.
Question. Mr. Malpass, the Committee on Foreign Investment in the
United States was established to review transactions that could result
in a U.S. business being controlled by a foreigner, in order to
determine the impact of these transactions on national security. Given
the sensitivity of these investigations, only affirmative
determinations, those that present national security risks, are made
public. The President has the discretion to not exercise his authority
to stop a transaction, even if CFIUS makes a determination that a
transaction presents a national security risk.
With respect to CFIUS investigations, do you have (or intend to
establish) a process to review internal conflicts of interest?
If so, please describe that process.
Will you require members of the administration, including members
of the Cabinet, with an implicit or explicit interest in the
transaction to recuse themselves?
Will you establish protocols to determine whether any member of the
administration, including the President or the Treasury Secretary, has
an interest in the business under review or a financial interest in the
home country of the acquiring entity?
If a conflict is found, will you advise such individuals recuse
themselves from CFIUS proceedings?
How would you respond if you received a request from the President
or a member of the administration that Treasury either initiate a CFIUS
investigation, requesting Treasury drop an ongoing CFIUS investigation,
or requesting Treasury to not commence a CFIUS investigation?
Answer. I understand that Treasury already has in place a robust
process for assessing and handling conflicts of interest in the
Treasury's CFIUS process. Each department and office that participates
in CFIUS is responsible for handling the conflicts of interest of its
staff in accordance with law and agency ethics policies. I understand
that these policies provide standards and guidelines for recusal. If
confirmed, I will work to ensure that all applicable laws and conflicts
of interest policies are appropriately applied to Treasury staff,
including those related to recusal and to the appropriate functioning
of CFIUS.
______
Questions Submitted by Hon. Claire McCaskill
Question. What procedures and policies should CFIUS implement to
ensure the independence of initial CFIUS deliberations and
investigations involving the Trump Organization, Kushner Companies, or
related entities, including any determination by CFIUS regarding
whether to make a referral or recommendation for presidential action?
Answer. Adherence to the conflicts of interest statutes and
regulations is important. As I understand it, Treasury takes
appropriate steps to facilitate ethics compliance by Treasury employees
participating in the CFIUS process and to protect the integrity of
Treasury's participation. Other CFIUS member agencies are expected to
do the same. If confirmed, I will do my utmost to ensure that I, and
all personnel under my supervision, comply with our ethical
obligations.
Question. Are there circumstances under which President Trump
should delegate to another executive branch official his authority
under 50 U.S.C. App. Sec. 2170(d) to make a final determination on
CFIUS referrals or recommendations?
Answer. This question addresses a matter for consideration by the
White House.
Question. If President Trump declines to delegate his decision-
making authority in the circumstances described above, what ethical or
legal guidance should CFIUS recommend he seek before making a final
determination on transactions involving the Trump Organization, Kushner
Companies, or related entities?
Answer. This question addresses a matter for consideration by the
Treasury General Counsel's office and/or other relevant Federal
departments or agencies.
Question. What procedures and policies should CFIUS implement to
ensure that senior administration officials with potential conflicts of
interest, such as Mr. Kushner, play no role in initial CFIUS
deliberations and investigations, as well as any final determinations
on CFIUS referrals or recommendations, involving the Trump
Organization, Kushner Companies, or related entities?
Answer. If confirmed, I will do my utmost to ensure that I, and all
personnel under my supervision, comply with our ethical obligations,
and I would expect other CFIUS member agencies to do the same.
Question. Would it ever be appropriate for CFIUS to block a
transaction for reasons of economic policy, as opposed to national
security concerns? In general, how will your office insulate CFIUS from
pressure to make particular decisions as a way to bolster the
administration's economic policy or trade agenda?
Answer. The CFIUS statute authorizes the President to block a
covered transaction when that transaction ``threatens to impair the
national security of the United States.'' If confirmed, I will advise
CFIUS consistent with its statutory authorities and restrictions.
______
Prepared Statement of Brent James McIntosh, Nominated to be
General Counsel, Department of the Treasury
Chairman Hatch, Senator Wyden, and members of the committee, thank
you for the opportunity to appear before you today. I am honored to be
the President's nominee to be General Counsel for the Department of the
Treasury, and I am grateful to the Secretary for his confidence in
recommending me for this position.
Since being nominated, I have had the opportunity to meet with
several of you and your staffs, and I appreciate the courtesies you
afforded me in hosting those meetings. From my prior Federal service, I
am acutely aware of the need for a close working relationship with the
Congress, and I look forward to working with you and your staffs to
foster such a relationship should I be confirmed.
The challenges that the Treasury confronts, and the
responsibilities of its chief legal officer in helping to navigate
them, are daunting in both breadth and complexity. In the past two
decades, I have twice watched the Treasury--including in particular the
General Counsel's office--grapple with pressing, emergent issues of
grave global consequence.
Having been in Manhattan's Financial District on September 11,
2001, I saw firsthand the horrors that terrorism wreaked that day. In
the years following, I watched with deep gratitude the heroic work of
Treasury personnel to bring to bear powerful financial tools to thwart
those who would do us harm. And while serving on the White House staff
from 2006 to 2009, I watched the tireless work of Treasury personnel to
address urgent issues in the American economy. In both cases, the
Treasury's dedicated, experienced, and immensely talented legal staff
was central to the Department's efforts. It has long been apparent to
me that it would be the honor of a lifetime to work among and lead that
staff.
One prior Treasury General Counsel said at his confirmation hearing
that ``the legal issues facing the Treasury today are among the most
critical in government.'' That statement has often been true, and I
believe it is true today. Treasury has a crucial role to play in
safeguarding the dynamism of the U.S. economy, in ensuring a fair and
effective tax system, in advancing this Nation's interests in the
world, and in bolstering our national security.
I pledge that if confirmed, I will bring to my share of these tasks
a commitment to rigorous legal analysis, zeal in the pursuit of the
interests of the American people, and steadfast dedication to upholding
the rule of law. I would strive to bring an unstinting devotion to duty
inspired by the work ethic of my parents, both raised on farms in the
Thumb of Michigan. I would be guided at all times by the obligation of
fidelity to the Constitution. And I would keep ever in mind the
fundamental truth, articulated by a mentor of mine, that the demands of
honor have special application to government service.
Thank you again for the opportunity to appear today. I look forward
to your questions.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Brent James Mcintosh.
2. Position to which nominated: General Counsel, U.S. Department of
the Treasury.
3. Date of nomination: April 24, 2017.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: September 28, 1973, Lansing, Michigan.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list secondary and higher education institutions, dates
attended, degree received, and date degree granted):
Yale Law School (1996-1999), Juris Doctor, May 1999.
University of Michigan (1992-1996), Bachelor of Arts, May 1996.
London School of Economics (1994-1995).
Williamston High School (1988-1992), diploma, June 1992.
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment):
Partner, Sullivan and Cromwell LLP, Washington, DC (2011-present).
Special counsel, Sullivan and Cromwell LLP, Washington, DC (2009-
2010).
Deputy Assistant to the President and Deputy Staff Secretary, The
White House, Washington, DC (2007-2009).
Associate Counsel to the President, The White House, Washington,
DC (2006-2007).
Deputy Assistant Attorney General, Office of Legal Policy, U.S.
Department of Justice, Washington, DC (2005-2006).
Counselor to the Assistant Attorney General, Office of Legal
Policy, U.S.
Department of Justice, Washington, DC (2005).
Senior Counsel, Office of Legal Policy, U.S. Department of
Justice, Washington, DC (2005).
Counsel, Office of Legal Policy, U.S. Department of Justice,
Washington, DC (2004-2005).
Associate, Sullivan and Cromwell LLP, New York, New York (2001-
2004).
Law clerk, Honorable Laurence H. Silberman, U.S. Court of Appeals
for the District of Columbia Circuit, Washington, DC (2000-2001).
Law clerk, Honorable Dennis Jacobs, U.S. Court of Appeals for the
Second Circuit, New York, New York (1999-2000).
Summer law clerk, Kirkland and Ellis, Washington, DC (1999).
Research assistant, Professor William Eskridge, Jr., Yale Law
School (1998-1999).
Summer associate, Davis, Polk, and Wardwell, New York, New York
and London, England (1998).
Research assistant, Professor Henry B. Hansmann, Yale Law School
(1997-1998).
Legal intern, Special Prosecutions Group, U.S. Attorney's Office
for the Eastern District of New York, Brooklyn, New York (1997).
Administrative assistant, Alumni Association of the University of
Michigan, Ann Arbor, Michigan (1996).
10. Government experience (list any advisory, consultative, honorary,
or other part-time service or positions with Federal, State, or local
governments, other than those listed above): Romney-Ryan Readiness Team
(pre-election presidential transition team) (2012).
11. Business relationships (list all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, other
business enterprise, or educational or other institution): Partner,
Sullivan and Cromwell LLP (2011-present).
12. Memberships (list all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable, and
other organizations):
To the best of my recollection, I am or have been a member of, or
hold or have held another position with, the following organizations
since graduating from law school:
Ahn Family Foundation, Grants Committee (2001-2016).
Alexander Hamilton Society (2010-present), Co-chair, DC Chapter
(2012-present), DC Chapter Steering Committee (2010-2012).
Alumni and Friends of the London School of Economics, Life
Member (2000-present).
Alumni Association of the University of Michigan, Life Member
(2000-present).
American Bar Association (2001-2006, 2009-present).
American Society of International Law (2001-2005, 2009-present).
Association of the Bar of the City of New York (2001-2005), Pro
Bono Society (2002, 2003).
Bannockburn Swim Club (neighborhood pool) (2005-2011).
Bretton Woods Committee (2015-present).
Chevy Chase Club (summer 2016).
Council on Foreign Relations (2005-2011).
Entomological Society of America (2011-2012).
Federalist Society (1997-present), International and National
Security Law Practice Group Executive Committee (2010-present).
Heritage Foundation/Chertoff Group National Security Law Working
Group (2014-present).
International Bar Association (2015-present).
International Institute for Strategic Studies (2009-present).
John Hay Initiative, International Law Working Group (2015-
present).
The Links (2017-present).
Metropolitan Club of the City of Washington (2008-present).
Montgomery County Recreation, Youth Basketball Coach (2016-
2017).
Republican National Lawyers Association (2013-present).
St. Columba's Episcopal Church, Gratitude and Resources
Strategic Initiative Team (2016), Lay Reader (2016-present).
Supreme Court Historical Society (2011-present).
U.S. Chamber Litigation Center, U.S. Chamber of Commerce,
Financial Services Advisory Committee (2015-present).
Yale Club of New York City (2009-present).
Yale Law School Association, Executive Committee (2012-2015),
Nominating Committee (2015).
Yale Law School Class of 1999, Class Secretary (2013-present).
Yale Law School Reunion Gift Campaign, Co-chair (2003-2004),
Class Committee (2013-2014).
Bar admissions:
State of New York (admitted 2001).
District of Columbia (admitted 2009).
Supreme Court of the United States (admitted 2005).
U.S. Court of Appeals for the District of Columbia Circuit
(admitted 2010).
U.S. Court of Appeals for the Second Circuit (admitted 2010).
U.S. Court of Appeals for the Third Circuit (admitted 2015).
U.S. Court of Appeals for the Fourth Circuit (admitted 2001).
U.S. Court of Appeals for the Fifth Circuit (admitted 2016).
U.S. Court of Appeals for the Ninth Circuit (admitted 2006).
U.S. District Court for the District of Columbia (admitted
2010).
U.S. District Court for the Eastern District of New York
(admitted 2002).
U.S. District Court for the Southern District of New York
(admitted 2002).
U.S. District Court for the Southern District of Texas (admitted
2003).
U.S. Court of Federal Claims (admitted 2009).
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate.
None.
b. List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years.
Romney Justice Advisory Committee (2011-2012).
c. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $50 or more for the past 10 years.
------------------------------------------------------------------------
Recipient Date Amount
------------------------------------------------------------------------
John Adams for Virginia 6/08/2016 $803.46
------------------------------------------------------------------------
Matthew Berry for Congress 11/18/2009 $250.00
------------------------------------------------------------------------
George P. Bush Land Commissioner campaign 1/04/2013 $250.00
------------------------------------------------------------------------
Jeb 2016 (Jeb Bush) 10/05/2015 $2,700.00
------------------------------------------------------------------------
Capito for West Virginia (Shelley Moore 4/24/2013 $500.00
Capito) 7/22/2014 $1,000.00
------------------------------------------------------------------------
Cotton for Senate (Thomas Cotton) 10/24/2013 $250.00
------------------------------------------------------------------------
Mike Crapo for U.S. Senate 8/06/2016 $1,000.00
------------------------------------------------------------------------
Ted Cruz for Senate 6/30/2011 $300.00
------------------------------------------------------------------------
Robert L. Ehrlich, Jr. gubernatorial 7/28/2010 $250.00
campaign
------------------------------------------------------------------------
Foley for Connecticut (Thomas C. Foley) 4/22/2014 $100.00
------------------------------------------------------------------------
Freedom First PAC 7/29/2010 $250.00
------------------------------------------------------------------------
Ed Gillespie for Governor 1/23/2017 $2,000.00
------------------------------------------------------------------------
Ed Gillespie for Senate 3/06/2014 $2,600.00
7/17/2014 $500.00
9/25/2014 $1,000.00
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Adam Laxalt Attorney General campaign 5/14/2014 $250.00
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Friends of Mike Lee 6/19/2015 $1,000.00
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Josh Mandel Senate Victory Committee 9/21/2012 $300.00
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John McCain 2008 5/03/2008 $400.00
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McCain-Palin Victory 2008 10/17/2008 $250.00
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Justice for All 10/04/2013 $300.00
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NRCC 7/19/2010 $250.00
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NRSC/NRCC Victory Committee 11/13/2013 $250.00
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Portman for Senate Committee (Rob Portman) 6/16/2009 $250.00
8/15/2010 $250.00
5/14/2015 $1,500.00
9/27/2016 $500.00
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David A. Pepper mayoral campaign 6/01/2009 $250.00
9/29/2010 $150.00
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Prosperity Action 6/30/2011 $1,000.00
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Romney for President (Mitt Romney) 5/09/2011 $1,000.00
1/31/2012 $1,500.00
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Romney Victory 5/24/2012 $2,500.00
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Ben Sasse for U.S. Senate 9/16/2013 $1,000.00
3/31/2014 $1,000.00
11/28/2016 $1,000.00
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Shelby for U.S. Senate (Richard C. Shelby) 10/13/2015 $1,000.00
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Elise for Congress (Elise M. Stefanik) 11/21/2013 $250.00
9/21/2016 $500.00
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Sullivan for U.S. Senate (Dan Sullivan) 10/28/2013 $250.00
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14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement):
Alvin and Arvella Bentley Scholar (University of Michigan).
Distinguished Alumni Award (Williamston High School).
Distinguished Legal Writing Award 2016, Burton Awards for Legal
Achievement.
Horace Rackham Scholar (University of Michigan).
James B. Angell Scholar (University of Michigan).
National Merit Scholar.
New York Law Journal 2013 ``Rising Star.''
Phi Beta Kappa (University of Michigan).
Pi Sigma Alpha political science honor society (University of
Michigan).
Presidential Scholar (U.S. Department of Education).
U.S. Department of State Superior Honor Award (group award).
Yale Law Journal, Articles Editor (Yale Law School).
15. Published writings (list the titles, publishers, and dates of all
books, articles, reports, or other published materials you have
written):
``City Fair Housing Suits May Have Unfortunate Consequences,''
Law360 (November 15, 2016).
``D.C. Circuit Invalidates CFPB Structure as Unconstitutional;
Rejects `Flawed' Statutory Application in Enforcement Proceeding,''
Columbia Law School Blue Sky Blog (October 20, 2016) (with Steven Meyer
et al.).
``A Guide to the Cybersecurity Act of 2015,'' Law360 (January 12,
2016) (with John Evangelakos et al.).
``The Cybersecurity Act of 2015,'' Columbia Law School Blue Sky
Blog (January 6, 2016) (with John Evangelakos et al.).
``SEC Enforcement: SEC Issues Guidance on Approach to Forum
Selection in Contested Actions,'' Columbia Law School Blue Sky Blog
(June 15, 2015) (with Nicolas Bourtin et al.).
``How Cybercriminals are Targeting Corporate Transactions,''
Law360 (May 19, 2015) (with Judson Littleton).
``President Obama Issues Executive Order Authorizing Sanctions for
Malicious Cyber Activities,'' Columbia Law School Blue Sky Blog (April
17, 2015) (with Erle Kadel, Jr.).
``The FBI Followed You: Why Twitter's Surveillance-Disclosure
Lawsuit Puts U.S. Intel Agencies in a Quandary,'' Law.com (April 16,
2015).
``Perez v. Mortgage Bankers Association,'' Harvard Law School
Forum on Corporate Governance and Financial Regulation (March 29, 2015)
(with Jeffrey Wall et al.).
``Supreme Court Clarifies Liability for Opinions in Registration
Statement,'' Harvard Law School Forum on Corporate Governance and
Financial Regulation (March 28, 2015) (with Robert Giuffra, Jr. et
al.).
``An Emblem of a Deeper Pathology in the Criminal Code: Thoughts
on the Supreme Court's Ruling That, Sometimes, Fish Aren't Tangible
Objects,'' Law.com (March 4, 2015).
``Judicial Review of SEC Consent Judgments,'' 47, Review of
Securities and Commodities Regulation 275 (December 3, 2014).
``Second Circuit Adopts Bright-Line Rule for Determining Customer
Status for Mandatory FINRA Arbitration,'' Business Law Today (September
2014) (with Robert Giuffra, Jr. et al.).
``As End of Supreme Court Term Looms, High-Profile Business
Disputes Remain,'' Law.com (May 24, 2014).
``Patriot Act Protects U.S.,'' Lansing State Journal (March 19,
2006).
``The Revolutionary Second Amendment,'' 51, Alabama Law Review 673
(2000).
As a student journalist in college (1993-1996), numerous articles
in the Lansing State Journal, the Michigan Daily (University of
Michigan student newspaper), and the Alumnus (University of Michigan
alumni magazine), primarily regarding University of Michigan and mid-
Michigan sports.
16. Speeches (list all formal speeches you have delivered during the
past 5 years which are on topics relevant to the position for which you
have been nominated):
None.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
I believe my experience as a lawyer representing clients in
complex disputes and my prior service in the executive and judicial
branches has prepared me for the responsibilities I would undertake, if
confirmed, as General Counsel of the Department of the Treasury. Both
in government and in private practice, my practice has focused on the
resolution of difficult, often novel legal disputes, providing me
experience with analysis of complicated legal problems, advocacy in the
service of my clients, counseling and negotiation, and various forms of
dispute resolution. Much of my practice at Sullivan and Cromwell has
centered on the financial services industry, affording me familiarity
with many issues relevant to the work of the Department of the
Treasury. While in government at the White House and the Department of
Justice, I worked with a wide variety of agencies across the executive
branch as well as with a number of congressional committees. My time in
government also gave me the opportunity to work on various national
security matters, which should serve me well in addressing the national
security matters in which the Department of the Treasury is involved.
Finally, both in government and in private practice, I have managed
large teams of professionals.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections with your present employers,
business firms, associations, or organizations if you are confirmed by
the Senate? If not, provide details.
If confirmed by the Senate, I will sever all such connections.
Note that pursuant to the Sullivan and Cromwell LLP defined benefit
plans for partners, I am eligible to receive monthly lifetime
retirement payments from the firm commencing at age 65. If confirmed by
the Senate, I will remain a participant in these defined benefit plans
but will not be entitled to benefits prior to that age (approximately
22 years from now) and will not accrue additional benefits under these
plans after I resign from the firm.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
Any potential conflicts of interest have been identified and
resolved in accordance with the terms and conditions of my ethics
agreement with the Department of the Treasury, which is documented by
letter to Rochelle F. Granat, Designated Agency Ethics Official and
Assistant General Counsel for General Law and Ethics. Should any
potential conflict of interest arise in the future, I will seek
guidance from a Treasury ethics official.
2. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
Any potential conflicts of interest have been identified and
resolved in accordance with the terms and conditions of my ethics
agreement with the Department of the Treasury, which is documented by
letter to Rochelle F. Granat, Designated Agency Ethics Official and
Assistant General Counsel for General Law and Ethics. Should any
potential conflict of interest arise in the future, I will seek
guidance from a Treasury ethics official.
3. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy. Activities
performed as an employee of the Federal Government need not be listed.
None.
4. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Provide the committee with two copies of any trust or other
agreements.)
Any potential conflicts of interest have been identified and
resolved in accordance with the terms and conditions of my ethics
agreement with the Department of the Treasury, which is documented by
letter to Rochelle F. Granat, Designated Agency Ethics Official and
Assistant General Counsel for General Law and Ethics. Should any
potential conflict of interest arise in the future, I will seek
guidance from a Treasury ethics official.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency,
professional association, disciplinary committee, or other professional
group? If so, provide details.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? If so, provide details.
In 1994, when I was a sophomore at the University of Michigan, I
was charged with one misdemeanor count of ``Receiving stolen property--
$100 or less.'' The charge was subsequently dropped.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to Brent James McIntosh
Question Submitted by Hon. Orrin G. Hatch
Question. Current law provides a production tax credit (PTC) for
refined coal facilities placed in service before 2012. The PTC applies
to refined coal produced in the 10-year period after the facility was
placed in service. Refined coal is a fuel produced from coal that, when
used in the production of steam, results in a significant reduction in
the emissions of nitrogen oxide and either sulfur dioxide or mercury
when compared to emissions from the use of the feedstock coal.
The IRS Chief Counsel recently issued a Technical Advice Memorandum
(TAM) that concludes that in order to qualify for the resulting PTC,
the activity engaged in by the taxpayer must meet certain economic and/
or commercial risk transfer goals. This has caused some concern among
facilities producing refined coal.
I understand that the IRS Chief Counsel might consider considering
establishing guidance for permissible investment structures to
facilitate the production of refined coal. If that is indeed the case,
you may want to review the status of those efforts and organize
additional activities to ensure that legitimate industry concerns are
considered. Additionally, facilities qualified for the refined coal PTC
are now at least 6 years (some have been producing for 8 years) into
their 10-year life. You may want to consider ways to ensure that the
intended tax benefits are realized before too much more of the
remaining 10-year production cycle runs out.
Answer. I can commit to work with the IRS Chief Counsel and consult
further with your staff on this issue, if confirmed.
______
Questions Submitted by Hon. Ron Wyden
Question. Mr. McIntosh, while no one questions that we need to get
our long-term deficits under control, we shouldn't risk the full faith
and credit of the United States to address the debt limit, a key
function of the Treasury Department. Raising the debt limit is a
necessary response to past spending and revenue decisions, allowing the
Federal Government to borrow what it needs to honor existing laws and
commitments.
The United States has the best credit in the world because
investors believe the government will always honor those commitments.
If it ever fails to do so, it may be impossible to restore the faith of
investors.
Republican ``debt prioritization'' proposals would have Treasury
pay interest payments to China and pay Social Security benefits, while
defaulting on military salaries, benefits to veterans and seniors on
Medicare, and payments to defense contractors. The Federal Government
makes 80 million payments each month, all of which were previously
authorized by Congress.
As former Treasury Secretary Lew has attested, debt prioritization
is not a viable back-up plan for Treasury if Congress fails to raise
the debt limit--there is just no such thing as ``managed default.''
Default is default and global credit markets will recognize it.
Mr. McIntosh, as Treasury General Counsel, will you advise
Secretary Mnuchin and members of Congress that all Federal debts must
be honored, or, that Treasury can pay some debts while defaulting on
others?
Answer. I share Secretary Mnuchin's publicly stated view that the
government should meet all of its outstanding obligations and that
Congress should act to raise the debt limit as soon as possible.
Question. Mr. McIntosh, as Chairman of the Committee on Foreign
Investment in the United States, the Secretary is responsible for
evaluating the national security implications of specific foreign
investments and recommending whether to modify or reject them. During
your meeting with staff you indicated you would not object to the
Secretary meeting with the White House regarding a specific transaction
under consideration by CFIUS and that the President's views should be
given ``great weight.'' You also said that you would ``probe the
position'' if you thought a financial interest was motivating the
recommendation, but that, as you put it, ``there is very little you can
do about being lied to.''
I appreciate your honest engagement with staff on these difficult
questions.
On your last point, regarding what might be done to mitigate the
risk that financial interests of White House officials would improperly
influence the Secretary's decisions in a CFIUS matter, do you agree
that it may be useful for you to have additional information regarding
the particular financial interests of those officials in order to
advise the Secretary on White House involvement in a CFIUS matter?
Answer. I do not believe the statements attributed to me in this
question accurately reflect my position as to the functioning of the
CFIUS process. So as to put my answer to this question in proper
context, I will first explain my view of that process.
First, CFIUS's mandatory members are drawn from a wide variety of
agencies, and all CFIUS members are obliged by law to evaluate a
covered transaction impartially to determine the effects of the
transaction on the national security of the United States according to
the applicable statutory factors, not based on non-
statutory criteria such as any particular individual's pecuniary
interest.
Second, it is my understanding that in the statute mandating
reviews of covered transactions, Congress specified that such reviews
are to be conducted by ``the President, acting through the Committee'';
that pursuant to a longstanding executive order followed by Presidents
of both parties, two components of the Executive Office of the
President--the Office of Science and Technology Policy and the U.S.
Trade Representative--are full members of the committee; that under the
same order, other White House components--including the National
Security Council and National Economic Council staffs--may serve as
observers of and participants in CFIUS reviews, as appropriate; and
that in the CFIUS statute, Congress provided that the final decision to
suspend or prohibit a covered transaction that threatens to impair the
national security of the United States is made by the President.
Notwithstanding those facts, it is my understanding that the vast
majority of the CFIUS process is handled by portions of the executive
branch other than the White House. My responses to your staff's
questions were intended to describe the CFIUS process and the statutory
allocation of authorities in that process as they exist and have been
executed by Presidents of both parties, not to suggest some desire to
change existing practice.
Third, all participants in the CFIUS process are obligated to carry
out their CFIUS responsibilities in adherence to the ethical duties
that apply to them.
Fourth, top executive branch personnel, including White House
staff, are required by law to file periodic reports disclosing their
financial interests, and those reports are publicly available.
In summary, the CFIUS process has certain built-in safeguards for
the integrity of that process. The diversity of views and viewpoints
represented on CFIUS, the consideration of specified statutory factors,
the ethical obligations incumbent on all participants, and the
mandatory financial disclosures required of executive branch employees
all serve to guard against inappropriate interference in the CFIUS
process. With regard to your question about whether CFIUS should
receive additional information beyond the information currently
provided, I understand that CFIUS already has broad authority to
request information from the parties to a covered transaction during a
review or investigation of a transaction. Because I am not currently
serving at the Treasury Department or involved in the CFIUS process, I
do not have a view, or the information necessary to formulate a well-
informed view, as to whether the information available to CFIUS is
sufficient to inform it fully of all relevant considerations.
______
Questions Submitted by Hon. Debbie Stabenow
Question. Pensions are a key lifeline for many Michigan families--
and an earned benefit based on a lifetime of hard work. About 47,000
workers and retirees in my State have been paying into the Central
States Pension Fund, which is in serious trouble and in desperate need
of a workable solution. I recently led a letter along with 13 of my
colleagues, to Secretary Mnuchin and the other members of the PBGC
board asking about what the administration proposes to protect the
hard-earned pension benefits of American workers and retirees.
Obviously, any proposal has to be enacted into law by Congress, but the
administration is in a position to lead on this issue.
To the extent that you are involved in this issue at Treasury, do
you commit to making the protection of workers' pension benefits a top
priority?
Answer. I appreciated the opportunity to discuss this important
issue with you in your office. As you know, the Treasury is required by
statute to implement the Multiemployer Pension Reform Act of 2014
(MPRA). MPRA allows the sponsors of severely underfunded multiemployer
pension plans to apply to Treasury for permission to reduce the
retirement benefits of participants to avoid insolvency that could
trigger even deeper cuts. To protect beneficiaries, the statute
requires applicants to demonstrate, among other things, that any
proposed suspension of benefits will meet but not materially exceed the
level required to avoid insolvency. If the application satisfies all
applicable legal requirements, Treasury is required by law to approve
the application. Although the office responsible for reviewing
applications under MPRA is not within the Office of the General
Counsel, it is my understanding that Treasury is committed to carefully
and thoughtfully complying with all legal requirements when deciding
whether to approve MPRA applications. If confirmed, I look forward to
assisting tax policy and other retirement policy experts at the
Treasury Department in developing better ways to protect the pensions
of hard-working Americans.
Question. The Committee on Foreign investment in the United States
is tasked with reviewing foreign transactions in the United States and
their national security implications. I am very concerned about the
growth in acquisitions of U.S. companies by state-owned enterprises
(SOEs)--in particular, Chinese SOEs.
Do you believe the CFIUS process needs to be reformed to keep up
with the increasing volume of purchasing activity we're seeing from
Chinese SOEs?
Answer. Protecting our national security is central to the Treasury
Department's mission, and CFIUS is a crucial tool in fulfilling that
mission. I also believe CFIUS is, and should continue to be, focused on
ensuring that any national security risks posed by the transactions
subject to its review are identified and addressed. My understanding is
that CFIUS has the statutory authority to review a broad range of
transactions and consider a wide range of threats, including those that
are unique to SOEs.
With respect to potential CFIUS reforms, I believe it is important
that we consider whether the U.S. Government has and is properly
exercising all appropriate tools to address emerging national security
risks. I understand that the Treasury Department is carefully
considering whether any steps are necessary to further enhance CFIUS
authorities and, if so, what steps would be most effective in
addressing specific emerging risks. If confirmed, I am committed to
providing legal support to this initiative.
Question. If yes, are you committed to working with members of
Congress to reform and modernize the CFIUS process to ensure that all
sectors of the economy are represented on the panel, including making
USDA and HHS permanent members of CFIUS?
Answer. If confirmed, I am committed to reviewing the current CFIUS
process and working with members of Congress and members of this
administration to address new challenges CFIUS faces.
______
Questions Submitted by Hon. Bill Nelson
Question. On the website of Sullivan and Cromwell it lists your
work as counsel to BP in the aftermath of the Deepwater Horizon oil
spill among your accomplishments. Please describe what you did for BP
in relation to the spill.
Answer. Beginning in mid-2015, more than 5 years after the
Deepwater Horizon oil spill, I (along with colleagues from Sullivan and
Cromwell) represented BP in negotiating the settlement of most of BP's
then-outstanding liabilities arising out of the spill, including
payments to the Federal Government, the five States bordering the Gulf
of Mexico, several hundred local government entities, and various
private plaintiffs. I also worked briefly on analyzing a discrete legal
question in the immediate aftermath of the spill.
Question. On the website of Sullivan and Cromwell it lists your
work representing Volkswagen and Audi in their emissions reporting case
among your accomplishments. Please describe what you did for Volkswagen
and Audi in relation to their emissions scandal.
Answer. In 2016 and 2017, I (along with colleagues from Sullivan
and Cromwell) represented Volkswagen and Audi in negotiating the
settlement of Federal criminal, environmental, customs, and other
claims arising out of the diesel emissions matter. The settlement
involved agreements with the Justice Department's Civil Division,
Criminal Division, and Environment and Natural Resources Division, and
Customs and Border Protection at the Department of Homeland Security.
Question. The final settlement between BP and the Department of
Justice did not stop BP from writing off some of the settlement
payments from its taxes, including natural resource damages. Did you
play a role in protecting the deductibility of these payments for BP?
Answer. The deductibility and non-deductibility of various types of
settlement payments is controlled by law. In the case of BP's 2015
Deepwater Horizon settlements, the Federal consent decree--which has
been approved by a Federal judge--expressly provided that no tax
deduction could be taken for civil penalty payments and did not specify
the tax treatment of other settlement payments, and the agreement with
the States bordering the Gulf of Mexico did not specify the tax
treatment of the payments thereunder. I was involved in the negotiation
of these two settlement agreements, but I am not a tax lawyer, I
regarded the tax treatment of the various payments thereunder to be
controlled by Federal law, and I did not regard my work to involve
protecting the tax treatment dictated by applicable law.
Question. Do you think it is wrong for corporations to try to use
loopholes in law to get out of their responsibilities? Why?
Answer. Corporations should fulfill the responsibilities that apply
to them, not attempt to get out of those responsibilities, because
corporations, no less than individuals, are obliged to fulfill the
responsibilities they bear. In our system, the governed--whether
individuals or corporations--have a right to fair notice of the legal
obligations that apply to them, and we strive to secure that right by
having their legal obligations clearly set forth in the law as written.
Question. Would you advise the Secretary of the Treasury, to the
fullest extent allowed by law, to close loopholes that allow
corporations or individuals to undermine the intent and spirit of the
law?
Answer. In our system, the governed--whether individuals or
corporations--have a right to fair notice of the legal obligations that
apply to them, and we strive to secure that right by having their legal
obligations clearly set forth in the law as written. As such, it is
important that the law be written in a way that fulfills its intent. In
some areas of the law, Congress has granted Federal agencies the
authority to promulgate appropriate anti-abuse rules designed to
reinforce a statutory standard or prevent gaps in compliance. In other
cases, only Congress has the power to amend the law where it perceives
the law as written to include ``loopholes'' that conflict with
Congress's intent. In light of those principles, if confirmed, I would
advise the Secretary that regulations and guidance the Department may
promulgate must be consistent with the statutory text adopted by
Congress and, to the extent allowed by law, should have as a goal
prevention of ``undermin[ing] the intent and spirit of the law,''
insofar as the law's intent and spirit are ascertainable and not
inconsistent with the statutory text.
______
Questions Submitted by Hon. Michael F. Bennet
Question. Mr. McIntosh, as you know, Treasury serves as a powerful
stabilizing force for our country. Part of that stability is preserved
by insulating Treasury from politics, which is central to the role of
the General Counsel.
Do you agree that Treasury's work to combat illicit financial
activity, impose sanctions, and conduct national security reviews
through the CFIUS process should be free from political interference?
Do you believe the same is also true for tax administration and
enforcement at the IRS?
Answer. The Treasury Department's programs and activities should be
administered consistent with all applicable laws, regulations, and
administration policies, in a manner that is free from any improper
influence.
Question. Mr. McIntosh, I am deeply concerned about President Trump
and his family's ongoing financial conflicts of interest. These
conflicts have the potential to result in the President and his
family's financial interests being directly impacted with his and his
family's knowledge by policies, investigations, national security
reviews, enforcement actions, and other matters related to your
responsibilities at the Department of the Treasury.
Can you commit that you will not allow anyone--from the White House
or otherwise--to interfere with Treasury's work to combat illicit
financial activity, to enforce sanctions, or to conduct national
security reviews, even if a company affiliated with President Trump,
his close associates, or family members is involved?
Answer. I am committed to supporting the evenhanded and impartial
enforcement of our Nation's anti-money laundering laws, economic
sanctions regime, and CFIUS review process, consistent with all
applicable statutes and the Constitution.
Question. Can you also commit to doing everything within your power
to protect the IRS from political interference generally, whether from
the President, his family, or his associates?
Answer. I believe that the neutral administration and enforcement
of our Nation's tax law is an inviolable public trust and that the IRS
should operate free of any improper influence.
Question. Mr. McIntosh, will you notify this committee if
inappropriate political interference occurs, from the White House or
otherwise, in any of these areas?
Answer. I am committed to ensuring that the Treasury Department's
programs and activities are administered consistent with all applicable
laws, regulations, and administration policies, in a manner that is
free from improper influence.
______
Questions Submitted by Hon. Robert P. Casey, Jr.
Question. Mr. McIntosh, following up on my hearing question, now
that you've had the opportunity to review the statute, as Treasury
General Counsel, would you advise the Secretary to respond to Senators'
requests for information regardless of their party affiliation. That
is, would you advise the Secretary that it is improper to only respond
to requests from Republican offices and not requests from Democratic
offices?
Answer. My prior service in the executive branch impressed upon me
the importance of a strong, constructive working relationship between
agencies and Congress. Responsiveness to congressional requests for
information promotes comity between coequal branches of government and
aids Congress in performing its important constitutional
responsibilities. Accordingly, if confirmed, I would advise the
Department of the Treasury to respond appropriately to all inquiries
from members of Congress without regard to party affiliation.
Question. Mr. McIntosh, as Treasury General Counsel, if you
determine it is lawful for the Secretary to only respond to requests
from Republican offices and not requests from Democratic offices, will
you inform the chairman and ranking member of the Finance Committee of
that determination and provide them a copy of that determination?
Answer. Please see my response to the question above.
Question. Mr. McIntosh, if White House Counsel directs Treasury or
any office within Treasury to only respond to Republican offices and
not Democratic offices, will you follow that direction?
Answer. Please see my response to the first question.
Question. Mr. McIntosh, if White House Counsel directs Treasury to
only respond to Republican offices and not respond to letters or
requests for information from Democratic offices, will you inform the
chairman and ranking member of the Finance Committee that you have been
directed by White House Counsel to not respond to Democratic
requesters?
Answer. Please see my response to the first question.
Question. Mr. McIntosh, if at any time White House Counsel requests
that Treasury not respond to the request or requests of a member or
members of this Finance committee, will you inform the chairman and
ranking member of the Finance Committee of that White House Counsel
request?
Answer. Please see my response to the first question.
Question. Mr. McIntosh, in January, I asked Secretary Mnuchin to
provide a copy of the number of foreclosures OneWest Bank engaged in in
Pennsylvania while he owned OneWest Bank, as well as State-by-State
foreclosure data. Secretary Mnuchin provided State foreclosure numbers
to Senator Heller prior to his confirmation in January, but he has yet
to provide Democratic requesters the same information. In other words,
a Republican Senator has received a response for information from the
Secretary, but Democratic offices have not received a response for
similar information from the Secretary.
Is it proper for the Secretary to provide this information to a
Republican Senator and not a Democratic Senator?
Answer. I am not familiar with the details of either request
described here; nor do I have access to any nonpublic information
concerning this issue. As a result, I cannot offer a responsible, well-
informed opinion on this matter.
Question. What advice and recommendation would you provide to the
Secretary with respect to this specific situation?
Answer. Please see my response to the first question and the
question above.
Question. Mr. McIntosh, the Committee on Foreign Investment in the
United States was established to review transactions that could result
in a U.S. business being controlled by a foreigner, in order to
determine the impact of these transactions on national security. Given
the sensitivity of these investigations, only affirmative
determinations, those that are found to present national security
risks, are made public. The President has the discretion to not
exercise his authority to stop a transaction, even if CFIUS makes a
determination that a transaction presents a national security risk.
With respect to CFIUS investigations, do you have (or intend to
establish) a process to review internal conflicts of interest?
If so, please describe that process.
Will you require members of the administration, including members
of the Cabinet, with an implicit or explicit interest in the
transaction to recuse themselves?
Will you establish protocols to determine whether any member of the
administration, including the President or the Treasury Secretary, has
an interest in the business under review or a financial interest in the
home country of the acquiring entity?
If a conflict is found, will you advise such individuals recuse
themselves from CFIUS proceedings?
How would you respond if you, the Secretary, or the Treasury Under
Secretary for International Affairs, received or a request from the
President or a member of the administration that Treasury either
initiate a CFIUS investigation, requesting Treasury drop an ongoing
CFIUS investigation or requesting Treasury to not commence a CFIUS
investigation?
Answer. I understand that Treasury already has in place a robust
process for assessing and handling conflicts of interest with respect
to Treasury's participation in the CFIUS process. Each department and
office that participates in CFIUS is responsible for handling the
conflicts of interest of its staff in accordance with law and agency
ethics policies. I understand that these policies provide standards and
guidelines for recusal. If confirmed, I will work to ensure that all
applicable laws and conflicts of interest policies are appropriately
applied to Treasury staff, including those related to recusal and to
the appropriate functioning of CFIUS.
______
Questions Submitted by Hon. Claire McCaskill
Question. What guidance should the Treasury provide to the Trump
Organization concerning the procedures it should follow in transferring
payments, including the timing of these payments, policies for
determining their necessity, and any documentation or other details
that should accompany them?
Answer. Based on press reports, I understand that the Trump
Organization has indicated that it will donate profits from foreign
government payments made to the Organization's hotels on an annual
basis. Reports further indicate that any such profits will be
identified based on policies and procedures developed by the Trump
Organization. The website of Treasury's Bureau of the Fiscal Service
provides guidance on how to make gifts to the U.S. Government. The
website states that financial gifts can be made by check or money order
payable to the United States Treasury and mailed to a P.O. Box in
Parkersburg, WV. More information is available on the Fiscal Service's
website at https://www.fiscal.treasury.gov/fsfaq/faq_gifts_to_govt.
htm.
Question. What standards should the Treasury employ internally in
determining whether specific transfers from the Trump Organization--
resulting from particular examples of foreign government patronage--are
necessary to enable President Trump to fulfill his ethical promises?
Answer. I understand the premise of your question as relating to
the Trump Organization's decision to donate voluntarily to the United
States Treasury certain profits earned by Trump Organization hotels.
Because I understand these payments would be gifts to the U.S.
Government, my understanding is that this is a Trump Organization
matter and not a Treasury matter.
Question. What standards should the Treasury employ internally in
calculating whether transfers from the Trump Organization represent the
full amounts due under the guidelines President Trump has established?
Answer. Please see my response to the question above.
Question. What oversight should the Treasury conduct, in general,
regarding whether President Trump and the Trump Organization have
fulfilled their payment obligations under the ethical guidelines
President Trump has established?
Answer. My understanding is that any such payments are being made
by the Trump Organization on a voluntary basis, as gifts to the U.S.
Government. As such, it is my understanding that any question
concerning whether the Trump Organization has remitted any such payment
should be directed to the Trump Organization.
Question. At what intervals should the Treasury make disclosures to
the public and Congress concerning transfers from the Trump
Organization, if any, and what information, specifically, should these
disclosures contain?
Answer. My understanding from press reports is that any such
payments will be made by the Trump Organization on a voluntary basis.
It is my expectation that such payments would be handled by the
Treasury Department consistent with all applicable laws governing gifts
to the Treasury.
Question. What efforts should the Treasury undertake to determine
the full extent of President Trump's debts, including debts held by
both international and domestic creditors, securitized debts and
corresponding investors, and debts for limited liability partnerships
in which President Trump or the Trump Organization maintains a minority
share?
Answer. It is unclear to me in what context Treasury would have the
responsibility or authority to undertake such inquiry.
Question. Will you commit to providing a full and public report of
the debts described above to Congress, and if so, what level of detail
will this report contain?
Answer. As noted above, it is unclear to me in what context
Treasury would have the responsibility or authority to undertake such
inquiry.
Question. What measures should the Treasury take to insulate
Treasury decision-making from conflicts of interest arising from debts
incurred by President Trump, the Trump Organization and related
entities, or any members of the Trump family?
Answer. As I understand it, Treasury is responsible for
facilitating ethics compliance by Treasury employees to protect the
integrity of Treasury decision-making. Potential conflicts of interests
for Treasury employees turn on their personal financial interests, not
the financial interests (including debts) of others.
______
Prepared Statement of Hon. Ron Wyden,
a U.S. Senator From Oregon
This morning, the Finance Committee will consider four nominations:
Mr. Eric Hargan to be Deputy Secretary of the Health and Human
Services Department;
Mr. David Malpass to be Under Secretary for International
Affairs at the Treasury Department;
Mr. Drew Maloney to be Deputy Under Secretary of the Treasury
Department for Legislative Affairs; and
Mr. Brent McIntosh to be the Treasury Department General
Counsel.
Let me begin with Mr. Hargan's nomination to be HHS Deputy
Secretary. It's the second-highest ranking position at the Department,
effectively the chief operating officer, a big job that encompasses a
lot more than making sure the trains run on time. As an example, Mr.
Hargan held this job on an acting basis during the Bush administration.
If The Wall Street Journal is to be believed, he used his position to
block efforts by the FDA to increase food safety inspections.
Today, with HHS pushing a radical agenda that would send the number
of Americans without health coverage through the roof, endanger seniors
who count on Medicaid for nursing home care, and slash the programs
that lay out basic living standards for working families, Mr. Hargan
and every HHS nominee will face serious questions about how they'd
approach their roles.
Next, if confirmed, Mr. Malpass would lead the office at Treasury
in charge of advancing our leadership in the global economy. It's a
tough job under any President. It's extraordinarily difficult under
this one. Senior Trump officials regularly contradict each other on
major economic policy issues, and then the President contradicts them.
Is the administration for a strong dollar or a weak dollar? Nobody
knows. Statements and actions on climate, trade and NATO have alienated
long-time allies and close economic partners, handing China greater
power and influence. Given all that, it'll be vital to focus on finding
policies that give all Americans a chance to get ahead and advance our
country's interests at the same time.
Mr. McIntosh is nominated to be Treasury General Counsel. A key
part of his portfolio, if confirmed, will be guaranteeing that
sanctions and rules on foreign investment are enforced and adhered to.
And during an administration rife with scandal and conflicts--
reportedly including undisclosed meetings with a Russian bank under
sanction--the Treasury General Counsel has to be unflinching in their
commitment to that task, even if they come under pressure to neglect
it.
Finally, I want to take a moment to address the issue of
congressional oversight, which is closely relevant to the jobs Mr.
McIntosh, as General Counsel, and Mr. Maloney, as Deputy Under
Secretary for Legislative Affairs, are nominated to fill at the
Treasury.
Word has come down from the Trump White House that the executive
branch essentially has free reign to ignore the questions that come
from Democrats conducting oversight. The White House counsel's office
is quoted as saying that the administration will only respond to the
chairmen of congressional committees, and of course all the chairmen
are Republicans. So this is a stated policy of stonewalling Democratic
lawmakers.
I want to make my feeling on this clear. This is a disgrace, and it
is deeply undemocratic. Members of Congress do not conduct oversight of
the executive branch for sport. Our obligation to perform vigorous
oversight is derived from the powers laid out in Article One of the
Constitution. We ask questions directly on behalf of the people we
represent, and it's those people, not just us in Congress, the
administration owes answers to. Bottom line, this is not the behavior
of a government that sees itself as answerable to the people.
The Finance Committee has a bipartisan tradition of supporting the
right of the minority to get responses from the administration
regardless of party. One of the questions this committee poses to every
executive branch nominee that comes before us is, ``do you commit to
provide a prompt response in writing to any questions addressed to you
by any Senator of this committee?'' I'll repeat the last part--``any
Senator of this committee,'' not ``any Senator of this committee with
an ``R'' next to their name.'' When nominees answer ``yes,'' we take
them at their word.
This is an issue near and dear to members on both sides. Senator
Grassley's got a track record of fighting as hard as anybody out there
for transparency and responsiveness from the executive branch. And I'd
wager that every member on my side of the dais could rattle off
examples of letters they've sent to this administration only to get
nothing substantive in return.
It's true that in the Trump administration, Treasury has not been
the worst culprit in terms of stonewalling oversight inquiries. If
confirmed, Mr. McIntosh and Mr. Maloney will have a direct hand in
working with Congress on these issues. And very shortly they'll get
that same question asked of every nominee who sits before this dais. So
it's my expectation that Mr. McIntosh and Mr. Maloney will help
guarantee that the department responds to the inquiries of all of the
committee's members, not just those of the President's party.