Senator Durbin opposes Obama Treasury nominee: aide
A top U.S. Democratic senator came out against President Barack Obama’s choice for a key U.S. Treasury Department post on Tuesday, adding to scrutiny over the nominee’s involvement with corporate tax deals called “inversions.”
The White House last week announced Antonio Weiss, a top official at investment bank Lazard
An aide to Senator Dick Durbin, the No. 2 Senate Democrat, said the lawmaker opposes Weiss because of Lazard’s work advising on recent high-profile inversions.
In these deals, a U.S. company typically buys a foreign rival, then locates the tax domicile of the combined entities abroad to reduce taxation. Durbin and other Democratic lawmakers have slammed such moves as an attempt by U.S. companies to avoid paying their fair share of taxes.
The Obama administration has sought to prevent a flurry of recent deals from growing, and the Treasury Department announced tough rules aimed at reducing the tax benefits in September.
Several Senate Democrats have introduced bills that would further punish companies for inverting, but the proposals appear unlikely to succeed. Congress is only in session for a short period this year and Republicans who will control Congress next year do not support the proposals.
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Lazard was one of several banks that advised on that deal.
Durbin joins a small group of senators who have raised concerns about Weiss, the global head of investment banking at Lazard since 2009.
The White House described Weiss as a highly qualified nominee.
“We look forward to the Senate’s consideration of his nomination and swift confirmation,” a spokesman said.
Iowa Republican Senator Chuck Grassley said last week the nomination showed the “continued hypocrisy” of the Obama administration.
“Ironically, this nominee might be especially well-equipped to advise the Obama administration on inversion policy,” he said.
Grassley sits on the committee that will vet the nomination.
Senator Elizabeth Warren, a Massachusetts Democrat, also opposes Weiss, in part because of the inversion issue, her office confirmed. Warren’s concerns were previously reported by Bloomberg News and Politico.
(Reporting by Emily Stephenson; Editing by Meredith Mazzilli and Nick Macfie)