Twenty years after leaving Capitol Hill, Ed Silverman, the top Democratic aide on the Senate Banking, Housing and Urban Affairs Committee, returned this year to help enact the most comprehensive rewrite of financial regulatory laws in decades.
In 1989, Silverman was chief of staff for Sen. Chris Dodd (D-Conn.), who is now chairman of the Banking Committee. At that time, the panel was working on the law that created the Office of Thrift Supervision a regulator tasked with supervising federal savings and loans associations during the crisis in that sector of the financial industry. Following even more expansive failures in the financial sector, his boss has recently proposed a sweeping new change to federal banking oversight.
One piece of Dodds proposal would meld the agencys oversight responsibilities with those of the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency into a single banking regulator. With that new mandate, Silverman is the team leader of a staff working to make a change that could alienate needed support for the regulatory overhaul measure and push opponents to fight even harder against it.
Silverman spent eight years working in Dodds personal office until 1989, but he joined the committee staff this year after heading public policy efforts at Greenwich Capital Markets Inc. now RBS Securities Inc. a Connecticut-based investment firm. He now serves as the staff director for the committee. One of the reasons I came back is because [Dodd] said he wanted to do something bold ... that nothing was off the table ... that he wasnt going to rule things out because it was politically difficult, Silverman said.
Removing regulatory authority from the Fed sweetens the deal for Republicans, who have been critical of attempts to broaden its power, but Treasury Secretary Timothy Geithner and House Financial Services Chairman Barney Frank (D-Mass.) have called the consolidation politically untenable. Banking and financial services groups close to negotiations on the bill have also expressed concern with creating a single regulator.
Since his return to the Hill, Silverman been extending his hand across the aisle and negotiating table, but lobbyists say theyre getting no sweetheart deals.
Its not a secret handshake kind of thing, one financial lobbyist said of dealing with Silverman.
His Republican counterparts say that the open and active relationship they have with Dodds Banking staff has continued under Silvermans leadership. Everything about Ed makes it easy to work with him, a senior Republican committee aide said.
Silverman earned his bachelors degree in urban affairs at George Washington University. Before his stint on the Hill in the 1980s, he served as the deputy assistant secretary for legislation and intergovernmental relations at the Department of Housing and Urban Development during the Carter administration.
Silverman admits hes not the detailed subject guy, but he leans on his nearly 30-year relationship with Dodd to ensure that his boss legislative intent is clear in the bill language that his staff produces.
Hes got a great relationship with his boss, and thats the perfect thing for the job, said Steven Shevick, a former Hill aide who worked for now-Sen. Charles Schumer (D-N.Y.) during Silvermans first stint on the Hill.