[Senate Hearing 117-342]
[From the U.S. Government Publishing Office]
S. Hrg. 117-342
NOMINATIONS OF VENTRIS C. GIBSON AND
PAUL M. ROSEN
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON
BANKING,HOUSING,AND URBAN AFFAIRS
UNITED STATES SENATE
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
ON
NOMINATIONS OF:
VENTRIS C. GIBSON, OF VIRGINIA, TO BE DIRECTOR OF THE MINT, DEPARTMENT
OF THE TREASURY
__________
PAUL M. ROSEN, OF CALIFORNIA, TO BE ASSISTANT SECRETARY OF THE TREASURY
FOR INVESTMENT SECURITY, DEPARTMENT OF THE TREASURY
__________
APRIL 6, 2022
__________
Printed for the use of the Committee on Banking, Housing, and Urban
Affairs
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available at: https: //www.govinfo.gov /
___________
U.S. GOVERNMENT PUBLISHING OFFICE
48-328 PDF WASHINGTON : 2022
COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
SHERROD BROWN, Ohio, Chairman
JACK REED, Rhode Island PATRICK J. TOOMEY, Pennsylvania
ROBERT MENENDEZ, New Jersey RICHARD C. SHELBY, Alabama
JON TESTER, Montana MIKE CRAPO, Idaho
MARK R. WARNER, Virginia TIM SCOTT, South Carolina
ELIZABETH WARREN, Massachusetts MIKE ROUNDS, South Dakota
CHRIS VAN HOLLEN, Maryland THOM TILLIS, North Carolina
CATHERINE CORTEZ MASTO, Nevada JOHN KENNEDY, Louisiana
TINA SMITH, Minnesota BILL HAGERTY, Tennessee
KYRSTEN SINEMA, Arizona CYNTHIA LUMMIS, Wyoming
JON OSSOFF, Georgia JERRY MORAN, Kansas
RAPHAEL WARNOCK, Georgia KEVIN CRAMER, North Dakota
STEVE DAINES, Montana
Laura Swanson, Staff Director
Brad Grantz, Republican Staff Director
Elisha Tuku, Chief Counsel
Dan Sullivan, Republican Chief Counsel
Cameron Ricker, Chief Clerk
Shelvin Simmons, IT Director
Pat Lally, Hearing Clerk
(ii)
C O N T E N T S
----------
WEDNESDAY, APRIL 6, 2022
Page
Opening statement of Chairman Brown.............................. 1
Prepared statement....................................... 16
Opening statements, comments, or prepared statements of:
Senator Toomey............................................... 2
Prepared statement....................................... 16
NOMINEES
Ventris C. Gibson, of Virginia, to be Director of the Mint,
Department of the Treasury..................................... 4
Prepared statement........................................... 18
Biographical sketch of nominee............................... 19
Responses to written questions of:
Chairman Brown........................................... 61
Senator Toomey........................................... 63
Senator Van Hollen....................................... 67
Senator Hagerty.......................................... 68
Paul M. Rosen, of California, to be Assistant Secretary of the
Treasury for Investment Security, Department of the Treasury... 5
Prepared statement........................................... 27
Biographical sketch of nominee............................... 28
Responses to written questions of:
Chairman Brown........................................... 68
Senator Toomey........................................... 69
Senator Menendez......................................... 72
Senator Warren........................................... 73
Senator Hagerty.......................................... 74
Additional Material Supplied for the Record
Letters submitted in support of nominee Paul M. Rosen............ 76
(iii)
NOMINATIONS OF VENTRIS C. GIBSON AND PAUL M. ROSEN
----------
WEDNESDAY, APRIL 6, 2022
U.S. Senate,
Committee on Banking, Housing, and Urban Affairs,
Washington, DC.
The Committee met at 10 a.m., via Webex and in room 538,
Dirksen Senate Office Building, Hon. Sherrod Brown, Chairman of
the Committee, presiding.
OPENING STATEMENT OF CHAIRMAN SHERROD BROWN
Chairman Brown. Good morning, everyone. The Senate
Committee on Banking, Housing, and Urban Affairs will come to
order. Today's hearing is in a hybrid format. The two witnesses
are here in person in front of us, with family members, and
feel free to introduce them when your time comes. Thank you for
joining us, all of you. And Members have the option to appear
either in person, virtually, or both if they choose.
The Committee meets today to consider the nominations of
Ms. Ventris C. Gibson to be Director of the Mint, and Mr. Paul
M. Rosen to be Assistant Secretary of the Treasury for
Investment Security. We thank the nominees for appearing, and
extend you and your families a warm welcome. To the nominees,
thank you. Both of you have served the public before in various
capacities. Thank you for your willingness to serve our
country.
Ventris Gibson is the President's nominee to serve as the
Director of the Mint. The agency to which Ms. Gibson has been
nominated is the world's largest coin manufacturer. In fiscal
year 2021 alone, the Mint shipped 14.7 billion circulating
coins. The Mint operates six facilities and employs some 1,600
people.
It was also the only major world mint to maintain
continuous production throughout the pandemic. Thanks to you
and your workers for that. It is a testament to its dedicated
workers who design, produce, and protect our national assets.
For more than two centuries, the Mint has played an
essential role in providing the American people and businesses
with secure, privacy-respecting currency. It is the sole
producer of circulating coins.
If confirmed, Ms. Gibson would be the first African
American to the lead the Mint. She represents yet another
historic nomination by this Administration. We voted out of
this Committee the first Black woman to ever serve on the
Federal Reserve. I have had the honor of meeting Judge Jackson
yesterday and knows her place in history and so much more, Ms.
Ferguson and others that have come out of this Committee.
Ms. Gibson has devoted more than 40 years to public
service, including decades in top leadership positions
throughout our Government. A veteran of the U.S. Navy, she
currently serves as the Acting Director of the Mint, beginning
in October, I believe. She served as the Director of Human
Resources for the District of Columbia. Prior to her time with
the D.C. government, Ms. Gibson served in high-level leadership
positions at the Departments of Health and Human Services,
Transportation, and Veterans Affairs. Thank you for nodding so
that I have this right. I appreciate that.
I am glad you can be here with us today, Ms. Gibson. Paul
Rosen is the President's nominee to serve as Assistant
Secretary of the Treasury for Investment Security. It is an
important national security position that this Committee helped
create in 2018 through the passage of the bipartisan Foreign
Investment Risk Review Modernization Act, another Washington
acronym, FIRRMA.
If confirmed, Mr. Rosen would lead an office responsible
for implementing the Department's responsibilities as Chair of
the Committee on Foreign Investment, CFIUS, an interagency
committee that reviews some foreign investments in U.S.
businesses.
Mr. Rosen previously held several senior leadership roles
at the Department of Homeland Security, including serving as
Chief of Staff to then-Secretary Jeh Johnson. Prior to joining
DHS, Mr. Rosen served as a Federal prosecutor at the Department
of Justice, counsel on the Senate Judiciary Committee, and
Staff Director to the Senate Caucus on International Narcotics
Control. Mr. Rosen is well respected, as we know, by the
national security community.
On Monday, a bipartisan group of 85 national security and
law enforcement professionals, spanning Republican and
Democratic administrations, sent a letter urging swift
consideration and confirmation of Mr. Rosen. They wrote, quote,
``Paul is the right person with the right skills to safeguard
U.S. national security when it comes to direct foreign
investment in the United States,'' unquote. The Fraternal Order
of Police wrote to Ranking Member Toomey and to me expressing
its ``strong support'' of Mr. Rosen's nomination. I ask
unanimous consent that these two letters be entered into the
record. Without objection, so entered.
Thank you, Mr. Rosen, for your prior service to our country
and your willingness to serve again. Thanks again for both of
you being here.
Senator Toomey.
OPENING STATEMENT OF SENATOR PATRICK J. TOOMEY
Senator Toomey. Thank you, Mr. Chairman. Mr. Rosen and Ms.
Gibson, welcome to both of you. I commend you both for your
longstanding commitment to public service. Mr. Rosen, you have
been nominated, as the Chairman pointed out, for an important
role at the Treasury, leading the Committee on Foreign
Investment in the United States, known as CFIUS. CFIUS is an
interagency body with the power to review, and, in some cases,
advise the President to block foreign direct investment into
the United States, known as inbound FDI, on the grounds that
certain investments may erode America's technological
advantages that underpin our national security.
Maintaining our defense while upholding our economic
prosperity is a sensitive and challenging task. The broad, free
flow of capital is a fundamental part of our remarkably
successful free market system. In particular, inbound FDI is a
source of much-needed investment in American businesses. From
2016 through 2020, between $150 billion and $500 billion in FDI
has flowed into the U.S. each year.
This inbound FDI can lower prices and increase the choices
available to American consumers, strengthen the American
workforce, increasing employment and wages, and fund research
and development that contributes to technological innovation
and economic growth.
However, foreign Governments and their agents know that
investing in an innovative American firm can potentially give
them access to valuable technology. Such investments, coupled
with the tech transfers that may follow, have the potential to
allow adversaries to make a technological jump that can be used
against our national security, all without having to spend time
and resources innovating themselves.
There is no more problematic, and systemic, threat in this
regard than China. As the U.S. intelligence community's latest
annual threat assessment says, and I quote, ``Beijing uses a
variety of tools from public investment to espionage to advance
its will remain the top threat to U.S. technological
capabilities,'' end quote. Protecting against the threat of
adversaries using FDI to harm our national security is why we
have CFIUS. But given the importance of inbound FDI to our
economy, it is vital that CFIUS remains laser focused on
screening for genuine national security threats while, at the
same time, not undermining the attractiveness of the United
States as a place to invest and innovate.
Mr. Rosen, if confirmed, you would be only the second
Treasury Assistant Secretary of Investment Security. Since this
position was created in 2018, FIRRMA made several notable
changes to CFIUS. Before FIRRMA, CFIUS only reviewed
transactions when a foreign person gained control or majority
ownership of a U.S. company.
FIRRMA expanded the scope of transactions that CFIUS can
review to include noncontrolling investments in certain U.S.
businesses and certain real estate transactions near military
bases and sensitive infrastructure sites.
FIRRMA also created a fast-track process that allows
companies to potentially shorten the CFIUS review process
through a mechanism called a declaration, as opposed to filing
a traditional notification. That process seems to be working
well. I will be looking forward to your reflections on that.
Now turning to the U.S. Mint, Ms. Gibson has been nominated
to serve as the Director of the Mint, which was established in
1792 in the great commonwealth of Pennsylvania and the city of
Philadelphia.
The Founding Fathers understood that in order for the
United States to prosper it needed its own monetary system. The
Mint continues to play a vital role by manufacturing coins that
Americans use every day. It also produces precious metal and
collectible coins. And for the Mint to thrive, it must continue
to innovate and release new products that resonate with the
public.
I look forward to hearing from our witnesses today, Mr.
Chairman.
Chairman Brown. Thank you, Senator Toomey.
Would each of you rise and raise your right hand please.
Do you swear or affirm that the testimony you are about to
give is the truth, the whole truth, and nothing but the truth?
Ms. Gibson. I do.
Mr. Rosen. I do.
Chairman Brown. And do you agree to appear and testify
before any duly constituted committee of the U.S. Senate?
Ms. Gibson. I do.
Mr. Rosen. I do.
Chairman Brown. Thank you. Please be seated.
Ms. Gibson, you are recognized to begin your testimony.
Thank you again.
STATEMENT OF VENTRIS C. GIBSON, OF VIRGINIA, TO BE DIRECTOR OF
THE MINT, DEPARTMENT OF THE TREASURY
Ms. Gibson. Thank you, Mr. Chairman, Ranking Member, and
distinguished Members of the Committee for allowing me to
appear here today. With me today are my children, my son
Alexander and his wife Katherine, my daughter Heather, and my
son Charles. I am honored that the President nominated me to
serve as the Director of the U.S. Mint, a responsibility that I
do not take lightly, and I would like to thank Vice President
Harris, Secretary Yellen, and Deputy Secretary Adeyemo for
their support.
My career in public service began more than 40 years ago
when, following high school, I joined the United States Navy.
My time as a Navy Air Traffic Controller in Tennessee, Sicily,
and Cuba was one of the most rewarding experiences of my life
and proved to be the defining moments for me relevant to my
values.
After military service, I continued to serve my fellow
veterans for 23 years at the Department of Veterans Affairs. At
VA, I advanced from an entry-level professional to one of VA's
most senior executives, Deputy Assistant Secretary. In those
roles, I dedicated my life to our Nation's veterans by further
developing employment programs and changing the diversity
landscape of the Department.
In January 1998, I led the development of the Office of
Resolution Management at the VA, where I was responsible for
handling the Department's unlawful discrimination complaints
and its alternative dispute resolution cases. I was also
responsible for the development, articulation, and delivery of
Department-wide human resources policies, programs, and plans
for 260,000 employees.
A highlight during my time at the VA was serving as one of
the first volunteers during the opening and dedication of the
Vietnam Veterans Memorial. We were called upon to assist family
members and friends in finding their loved ones' names on the
wall. I can still see and feel the tears of those mothers,
fathers, brothers, sisters, and fellow soldiers. For me, this
moment crystalized our debt as a Nation to those fallen heroes
and how their loss of life preserved our freedom and defended
our democracy.
In 2003, the former Administrator for the Federal Aviation
Administration, Marion Blakey, asked me to join her team as
FAA's most senior human resources executive. In that role, I
stabilized a human resources environment in the middle of a
transition to a centralized model. I retired after 35 years of
Federal service.
In 2014, I was pulled from retirement and appointed to the
Department of Health and Human Services as the Associate Deputy
Assistant Secretary for H.R. In that position, I worked with
the Office of Personnel Management on several initiatives that
led to flexible hiring programs and the future of the Federal
workforce.
In 2015, Mayor Muriel Bowser appointed me to her cabinet as
the city's top Director of Human Resources, where I transformed
the District's H.R. program into a high-performing, results-
oriented organization, where I managed a billion-dollar health
benefits program for 80 agencies and 37,000 employees.
Last fall, I was honored to join the U.S. Mint as its
Deputy Director. The Mint has a rich and meaningful history,
and it is the largest and most respected Mint in the world. I
would consider it a privilege and an honor and another defining
moment in my life to serve, if confirmed, to be the Director.
If confirmed, I am ready to lead a workforce dedicated to
connecting America through coins. I will focus on people, as
they are key to the Mint's success, on our programs, from
commemorative medals to collectible coins to circulating coins,
and on our performance, one that is highly valued and highly
thought of.
Thank you again for this opportunity to appear before the
Committee, and I welcome your questions.
Chairman Brown. Thank you, Ms. Gibson.
Mr. Rosen, welcome.
STATEMENT OF PAUL M. ROSEN, OF CALIFORNIA, TO BE ASSISTANT
SECRETARY OF THE TREASURY FOR INVESTMENT SECURITY, DEPARTMENT
OF THE TREASURY
Mr. Rosen. Thank you. Chairman Brown, Ranking Member
Toomey, distinguished Members of the Committee, it is an honor
to sit here before you as the President's nominee to serve as
the Assistant Secretary for Investment Security for Treasury.
My life's journey into public service has its roots in
these very halls, going back nearly 50 years. In 1973, my
parents met working in Congress, my father, from California, a
legislative assistant, and my mother, originally from southeast
Washington, DC, a legislative secretary, both working for
Yvonne Brathwaite Burke, the first African-American Congressman
elected from California. My parents were drawn to Capitol Hill
by a desire to serve, which was a value instilled by their
parents, including by my grandfather who enlisted in the Army
to fight as a Corporal in World War II, and by my grandmother
who spent 34 years working at the U.S. Census Bureau.
My parents married and relocated to California, where they
raised my brother and me, instilling in us the same values of
service, integrity, and hard work. My mother went on to teach
elementary school for 38 years, and my father practiced law
with two friends, in addition to continuing his own public
service, volunteering on city commissions and arts and
education boards, and both continue to work to this day into
their 70s.
My brother also found his own calling in community service.
After a long and difficult battle with addiction he became a
counselor at a rehabilitation facility and helps at-risk youth,
speaking to schools and students and adolescents, trying to arm
them with healthy tools to cope with the stresses of life. I am
extremely proud that this summer will mark his 18th year of
sobriety.
My own path, Senators, was greatly influenced by this
history. After graduating college, I packed a suitcase and
bought a one-way ticket to Washington, DC, with the goal of
working on Capitol Hill. My first opportunity was volunteering
as a volunteer intern for the late Senator Carl Levin, and
later I worked as a staff assistant for Senator Joe Biden.
After attending law school and then clerking for a Federal
judge, I returned to the Senate to serve as a counsel on the
Senate Judiciary Committee, and then for nearly another decade
working in various jobs at the Justice Department and the
Department of Homeland Security, working to protect public
safety and national security. I was drawn to these roles, in
part, from witnessing the scourge of illegal drugs and the
impact they have had on victims, like my brother and so many
others.
And like my parents did a half century ago, I met my wife
on this journey, and we are blessed to have a beautiful baby
girl. Casey is with me here today, while our daughter is home
in California with her grandparents, watching the hearing. I
cannot thank them and our entire family enough for their love,
support, and sacrifice.
Senators, the Committee on Foreign Investment in the United
States, or CFIUS, plays a vital role in protecting U.S.
national security. As technology advances at warp speed and the
intentions and capabilities of our adversaries expand, CFIUS,
and the talented career public servants who support it, are
critical gatekeepers in protecting the United States from
malign foreign investment while continuing to promote an open
investment environment. And there is perhaps no more
consequential time in our history than now to make curtain
that, working with this Committee, CFIUS is successful in
executing on its national security mission.
My professional path, experiences, and values have prepared
me well to fulfill the role of Assistant Secretary. My work as
a prosecutor, senior Government official, and national security
lawyer uniquely position me to fully and faithfully execute
Congress' statutory mandate in the landmark Foreign Investment
Risk Review Modernization Act, a vitally important bipartisan
law that updated the framework, authorities, and functions of
CFIUS.
Senators, if confirmed, I would be honored to serve
alongside the talented and dedicated career professionals in
the Office of Investment Security and International Affairs to
preserve an open investment environment that supports economic
growth and innovation while protecting U.S. national security
interests.
Thank you, and I look forward to your questions.
Chairman Brown. Thank you, Mr. Rosen.
I will start with you, Ms. Gibson. According to the New
York Times, an internal report commissioned last year by the
Mint found the organization had, in their words, ``a culture
problem'' marked by implicit bias, unfair hiring practices,
racial tension. This reporting is extremely troubling to us,
and I assume to you.
As someone with decades of experience engaging in executive
oversight and workforce development--you laid our career out
beautifully, I thought--building inclusive teams within
Government agencies, you understand the importance of
addressing culture issues directly. I know you are new to this
agency. I know that report was from September and you joined
the next month.
What have you been doing in the months that you have been
Acting Director, in your current capacity, to address these
issues? What plans do you have to continue this work, if
confirmed?
Ms. Gibson. Thank you, Chairman, for the question. Since I
have joined the Mint in October of last year, and after having
digested the report and using it as a predecisional document in
action planning going forward, I put in place what I call a
blueprint for change. And this is based on my values of
fairness, integrity, and trust, because that is so essential to
leadership and the trust of the nearly 1,700 Mint employees.
That being said, the blueprint for change is actually a
guide to how we address these unlawful perceptions by employees
of discrimination, marginalization, and sensitivity, or, in
fact, in some cases, workplace harassment. I have ensured the
development of an antiharassment policy, and I have laid in
place, again, that blueprint, which has a 10-point actual plan
that I would be willing to sit down with you and the staff to
go over in detail and provide an update on how we are
accomplishing making sure we address it.
Just two examples. I have created the Chief Equity Office,
that will look toward our lens toward equity, and I have hired
a consultant to come in and help me make sure I effect change.
Chairman Brown. Thank you.
Mr. Rosen, I will turn to you. The Assistant Secretary is
charged with leading the interagency committee in reviewing
certain foreign investments to identify and address national
security concerns that those transactions may pose. You
outlined well in your opening statement how your previous
Federal service will inform your work as Assistant Secretary.
So my question is this. In FIRRMA, Congress recognized the
national security implications of foreign investments in U.S.
businesses that maintain or collect sensitive personal data.
Your work at DHS and the private sector provided opportunities
to understand how companies structure transactions and business
involving personal debt.
How will you ensure that CFIUS is reviewing transactions
involving sensitive personal data, and what will you consider
when reviewing such transactions?
Mr. Rosen. Chairman, thank you for that question and for
raising the important issue of sensitive personal data. As you
and the Ranking Member know, this was an issue that the
authorities for which were enhanced in FIRRMA, and sensitive
personal data now is one of the triggers for reviewing a
noncontrolling investment. And as we know, with technology and
the advent of various, well, technological advancements,
sensitive personal data of Americans is everywhere, and it is
an issue that FIRRMA has rightly focused on.
So one of the things that we would do is, of course, in
assessing certain jurisdiction of noncontrolling investments
look to the statute, look to the factors, and look to whether
and to what extent U.S. sensitive personal data would be
exposed, because there is a great concern that our adversaries
could get a hold of sensitive personal data. They have done it
before and they are looking to do it to exploit that data on
U.S. citizens.
And so it is something that, Senator, if confirmed, we
would take a very close look at and making sure that we are
protecting that sensitive information.
Chairman Brown. Thank you. Last question, another for you,
Ms. Gibson. Since its founding, as the Ranking Member pointed
out, in Philadelphia, the Mint has served the American people
by manufacturing, distributing, and circulating coins. It has
been reported that the coronavirus pandemic caused disruptions
to the normal circulation patterns for coins. As we return to
normal, and if you are confirmed, and we return to normal and
businesses reopen to full capacity, describe what the Mint is
doing to promote circulation. As you answer that, just tell us
if you are still seeing those disruptions and how you are going
to address it.
Ms. Gibson. As you can appreciate, Senator--thank you for
the question, sir--the U.S. Mint is an operational arm of the
currency that we produce in the United States, and at the
Federal Reserve's request we deliver. And we have delivered all
coins requested by the Federal Reserve for distribution to the
banks.
That being said, we also have looked at what flowback is.
We have participated in the U.S. Coin Task Force that made
recommendations on how we can get coins back flowing from the
nearly 128 million homes that during the pandemic have kind of
kept coins without negotiating them through our economy. And
are also looking at, we have a program called Get Coins Moving.
I did a press release last week to just get out there to as
many of the media as possible, saying, ``Hey, bring the coins.
Let's get them back into the economy.''
Chairman Brown. Thank you. Senator Toomey.
Senator Toomey. Thank you, Mr. Chairman. Mr. Rosen, as you
know, when FIRRMA was passed it dramatically expanded the scope
of transactions that would be subject to CFIUS review, and
CFIUS seems to have stepped up and significantly increased the
volume of transactions that it has looked at, evaluated, many
under the declaration process, which is the faster process of
getting to an approval.
But certainly CFIUS has its hands full with this volume of
transactions. I am concerned that we should not, certainly any
time soon, add to the burden or create distractions or meddle
with CFIUS' core mission, because it is a big job and it is a
very important job.
I guess I would like to get your perspective on how you
think about the specific national security threats that arise
from China, in particular, when it comes to acquiring American
technology. So briefly, your assessment of the nature of this
threat, how serious is it, and how do you view how CFIUS is
currently managing that.
Mr. Rosen. Senator, thank you for that question and for
raising this critical issue. The threat from China, frankly, is
significant. It is a strategy economic competitor. It is
engaged in conduct that is adversarial against our national
security interests. They are engaged in acts of stealing
intellectual property, technology, and the like. You cited the
intel assessment. It is a threat that I think we need to be
very, very focused on, Senator, and it is one that I take very
seriously.
In terms of how the committee would approach that threat,
frankly, Senator, I think you and others in FIRRMA provided
significant tools to examine and go after that threat, and they
are tools that I intend to use. For example, the non-notified
transaction process. Very important. Monitoring and compliance
issues. Very important. The jurisdictional issue of being able
to look at transactions intended to evade CFIUS jurisdiction.
Very important, because I think we need to be focused on the
threat in front of us but also the threat of tomorrow.
Senator Toomey. So in my opening remarks I mentioned how
important inbound FDI is to the American economy. I assume you
agree that that is an important asset for our economy.
Mr. Rosen. Yes, Senator.
Senator Toomey. So my question is, given the importance of
FDI and given that CFIUS can review and intervene and even
block FDI, how do you both safeguard critical U.S. technology
but, at the same time, avoid becoming a cumbersome obstacle to
legitimate FDI, and sort of a related question, how do you make
sure that CFIUS does not become a tool for just protectionism?
Mr. Rosen. Senator, thank you for raising that and for the
question. On the first, it is a balance. We need to make sure,
and if confirmed, I would engage in this, make sure that we are
efficiently and effectively moving transactions. Moving benign
investment through the process is a very important piece of the
CFIUS review. Predictability and certainty in the business
community, very important, all while focusing on national
security, are things that the balance needs to be struck. You
have raised those two pieces.
I think, moving forward, from a CFIUS operational
perspective, I think those are the things that, if confirmed, I
would be looking to work with this Committee on in striking
that balance.
Senator Toomey. Thank you. Ms. Gibson, as I mentioned in my
opening statement, the Mint needs to continue to innovate and
to release new products that resonate with the public. That
includes collectibles. Two examples, and I want to ask you
about them, Morgan and Peace silver dollars. My understanding
is that in 2021, the Mint released popular new versions of each
of these coins, and they sold out within minutes. But in 2022,
I understand the lack of availability of silver has caused a
suspension of the production of these coins.
I have been approached by stakeholders who are very
concerned that if we skip a year's production, 2022, and wait
until 2023 to resume production, that that will have an adverse
negative impact on the attractiveness of the series, the value
of these coins. So I am wondering, is it possible to actually
produce these coins in 2022, rather than just waiting until
2023.
Ms. Gibson. Thank you, sir, for the question. The Morgan
and Peace program was highly popular. As you mentioned, it sold
out in minutes. And we also received a number of complaints
from customers that were not able to obtain the Morgan and
Peace.
For 2022, we thought about how can we go about ensuring
that we will have enough coinage, Morgan and Peace
specifically, for the customers, especially since we sold out
in 2021 and could not meet that customer demand. I pulled
together a team of experts from manufacturing, sales and
marketing, legal, and the chief fiscal officer, to make sure
that going forward we could produce the Morgan and Peace in
2022, given the fact that we have to also balance our silver
supply chain with our bullion program, which is congressional
mandated.
Thus, we made the decision that we would bypass 2022, and
in 2023 make the Morgan and Peace coin, and that way make
enough sufficient to satisfy customer demand.
Senator Toomey. My time is out but my understanding is it
would be possible to make some coins in 2022, probably not
sufficient to meet the full demand, but a number of
constituents have suggested that it is better to at least meet
some demand and have the continuity of production rather than
wait until 2023, when maybe you will be able to meet the full
demand then.
So I would just ask you, respectfully, to consider that
possibility.
Ms. Gibson. Thank you, sir, and I surely will.
Chairman Brown. Thank you, Senator Toomey.
Senator Warren, from Massachusetts, is recognized.
Senator Warren. Thank you, Mr. Chairman.
The Biden administration has rallied the world to impose
historic sanctions against Russia for its invasion of Ukraine.
These sanctions include seizing yachts, mansions, financial
holdings, that Vladimir Putin and his oligarch buddies have
stashed abroad. But to enforce these sanctions, we need to know
who owns what.
So, Mr. Rosen, if confirmed, you would play a leading role
on the Committee on Foreign Investment in the United States.
Now CFIUS does not enforce sanctions but they do review foreign
investments in the United States to make sure that they do not
pose a risk to our national security. That means that they know
a lot about the importance of finding out who is behind an
investment.
So, Mr. Rosen, let me ask you, when a shell company tries
to buy a U.S. semiconductor company or real estate right next
to a military base, CFIUS does a tremendous amount of work to
find out who is behind the shell company, often the entity
known as the beneficial owner. So why is it so important to
national security that we know the actual identity of who is
investing in the United States?
Mr. Rosen. Senator Warren, thank you for that question.
Certainly understanding where money is coming from, who is
controlling the money, what does that flow look like are key
considerations in any national security risk assessment.
Senator Warren. But CFIUS only reviews a few hundred
transactions a year, and it focuses on investments that lead to
foreign control of important U.S. businesses. That is its
special niche. That prevents foreign adversaries from buying
the companies that, for example, run our power grid, but it
does not stop criminals, terrorists, and sanctioned oligarchs
from making other kinds of investments in the U.S., including
stashing a lot of money here.
We do have other safeguards. Know-your-customer
requirements require the financial institutions to ask basic
questions about potential clients before helping them hide
buckets of cash in our financial markets. Now these rules apply
to most American financial institutions, like banks and mutual
funds, and even casinos. Catherine Cortez Masto, I thought you
might want to remember that. They are all paying attention
under know-your-customer. But there is a huge loophole for the
$11 trillion private investment industry.
Mr. Rosen, if a Russian oligarch uses a shell company to
invest his billions with a U.S. private equity firm, is that
private equity firm required to find out who is actually behind
that shell company?
Mr. Rosen. Senator, I do not believe so.
Senator Warren. That is right. The answer is no, and that
creates a huge loophole for oligarchs to be able to evade
sanctions and to continue to carry on business right here in
the United States.
This loophole also poses a threat to the stability of our
financial system because we do not know what parts of the
financial system have been infiltrated by Russian money, and
that means we do not know what impacts sanctions could have,
and it is hard to be confident that private funds are actually
complying with sanctions as required by current law.
So, Mr. Rosen, do you agree that it is a threat to both
national security and financial stability to allow private
investment companies to blindly accept cash of Russian
oligarchs, not to mention money from human traffickers, drug
lords, and terrorists?
Mr. Rosen. Senator, I certainly believe that beneficial
ownership inquiry analysis is a key national security
consideration, particularly when it comes to CFIUS.
Senator Warren. Good. You know, last year the Biden
administration committed to fixing this loophole, but Russia's
invasion of Ukraine has made it clear we do not have any time
to waste here. With every day that passes, Russian oligarchs
and Government officials continue to profit from illegal
investments in the United States. That is why I sent a letter
last week to the Treasury Department and the SEC asking them to
immediately close the know-your-customer loophole for the
private investment industry.
The United States has led the world in imposing strong
sanctions against Russia, and we must use every tool possible
to enforce those sanctions.
Thank you, Mr. Chairman.
Chairman Brown. Thank you, Senator Warren.
Senator Cortez Masto, from Nevada, where there was once a
mint in Carson City, and now a museum, right?
Senator Cortez Masto. That is absolutely right. I was going
to lead with that.
Chairman Brown. Oh, I am sorry.
Senator Cortez Masto. I was going to lead with that. So
first of all, congratulations to the nominees. Welcome.
Congratulations. Welcome to your family members.
And so, Ms. Gibson, I was going to start with that, because
the Mint, the U.S. Mint, and because of the Comstock Lode, as
you well know, we had a Mint in Carson City for a period of
time. It is now part of our State history, Nevada History
Museum. We are very proud of it. I was just there, actually.
They were actually minting some coins.
So let me talk to you a little bit about this because I was
pleased to see President Trump sign into law a bill that I
worked on with Representative Barbara Lee, Circulating
Collectible Coin Redesign Act of 2020. And I was fortunate
enough to lead this with Senator Fischer. We had 24 cosponsors,
including Senators Toomey, Daines, Moran, and Smith.
And what we did in that piece of legislation, it was to
recognize important women in our nation's history. I was
particularly pleased that Maya Angelou was chosen for the
inaugural quarter, as you well known about her legacy, which
really helped to fuel greater fairness and understanding across
our nation around activism in her writing. I am looking forward
to collecting the next quarter honoring astronaut Sally Ride.
But my question to you is, if confirmed, how would you
ensure that the U.S. Mint increases awareness of these quarters
honoring prominent American women, particular among children
and young people, and how do you think this type of recognition
helps with the work ultimately you do minting coins and making
sure that they are out there in circulation amongst the
American public?
Ms. Gibson. Thank you, Senator, for that question, and
thank you for your leadership of the American Women coins
program.
As you know, we still, this year, have three remaining, and
that is Wilma Mankiller, Nina Otero-Warren, and Anna May Wong,
and we have announced the five women for 2023, which are Bessie
Coleman, Jovita Idar, Edith Kanaka`ole, Eleanor Roosevelt, and
Maria Tallchief. And the program will continue through 2024,
with five additional women, with your input as well, and
through 2025, five additional women.
The reason why this is so critical that we capture women on
coins is because women helped contribute and build this great
nation, and the contributions of these trailblazers, and those
that have gone through the suffrage movement, and those that
have gone through voting rights, and those that have really
made a difference in how we, as a country operates. We have
women on the front lines in our military every single day.
It is my desire, if I am confirmed, have the privilege of
being confirmed for this position, to make sure that going
forward women are just a natural part of the coin process, and
that we do not have to have a special program to recognize
them, that they have an equal voice and an equal presence in
our coinage.
Senator Cortez Masto. Thank you. I want to jump to Mr.
Rosen because I only have so much time here, but I appreciate
the work that you are going to do around not only this but the
work that is so crucial for the U.S. Mint, and your background
clearly shows you have the experience to lead the helm there.
Mr. Rosen, another area I want to highlight, some of the
glowing letters of support that I have received in support of
your nomination as well. One of those is from the National
Fraternal Order of Police. They spoke to your ability as a
reliable partner of law enforcement. You are described as a
thorough prosecutor of crimes, such as drug trafficking,
violent crime, and financial crimes, and your work at Homeland
Security serving under Secretary Johnson to combat threats to
the homeland such as ISIS and cybersecurity.
Talk, if you would, about your experience in cybersecurity
and counterterrorism and how that will inform your work at
CFIUS.
Mr. Rosen. Thank you very much, Senator, for the question
and the reference to that letter. My experience in national
security, law enforcement will critically inform how I approach
the role of Assistant Secretary. When I was chief of staff of
the third-largest Cabinet agency we were responsible for
addressing threats to the homeland from a variety of sources,
and as you point out, those were counterterrorism threats, that
was ISIS-inspired actors, and critically cybersecurity threats
to our critical infrastructure and commercial partners. And we
worked to harden that infrastructure, both commercially and on
the Government side, and we worked to counter the threats
coming from overseas, particularly from China and elsewhere.
Senator, if confirmed, it is something that I will be
focused on.
Senator Cortez Masto. Thank you, and I appreciate your
comments, because going to what Senator Toomey talked to you
about with respect to the concerns with the Chinese Communist
Party, I do think your background lends itself to prepare to
handle issues such as the CCP-backed venture capitalist
investors targeting emerging technology firms. I am hopeful
that based on your background, and what you have just already
talked today about the balance, and finding that balance, that
you are going to be just as effective and what we need here.
And that you will also come back to us and tell us what
additional tools you might need as we address and look at the
concerns happening abroad.
So I am done. Thank you so much. Congratulations to both of
you. Thank you, Mr. Chairman.
Chairman Brown. Thank you, Senator Cortez Masto.
Senator Hagerty is recognized, from the State of Tennessee.
Senator Hagerty. Thank you, Mr. Chairman, and
congratulations to our two nominees.
Mr. Rosen, I would like to turn to you first and talk about
a topic that is near and dear to my heart, which is CFIUS.
Senator Cortez Masto, I am certain was just talk with you about
that as well. And I want to initially ask for your commitment
to work with this Committee, and in particular the National
Security Subcommittee, which I am the Ranking Member, to
continue to refine the improvements in our investment screening
regime that are enabled in FIRRMA, and as enabled through the
regulations that are developed and published over the past few
years.
Mr. Rosen. You certainly have my commitment, Senator, yes.
Senator Hagerty. Thank you. Thank you, Mr. Rosen.
As FIRRMA noted, investment screening is more effective if
our like-minded allies are operating similar systems, screening
out similar nefarious investments. And to that end, the
previous Administration established an office within Treasury
to work with allied nations to establish and coordinate
investment screening. In fact, when I served as U.S. Ambassador
to Japan I had teams come over to work with our partners there,
to try to share our knowledge, to share our best practices, to
make certain that our allies are working in the same direction
that we are. I think we are all much better off when we have
coordinated screening in that manner.
We have seen a lot of positive movement in that direction,
and we have got more than a dozen countries now strengthening
or expanding their systems. So I would like, Mr. Rosen, if you
would just talk for a few minutes, if you would, about your
priorities for engaging with our allies to further synchronize
our systems.
Mr. Rosen. Senator, thank you for that question, and
raising this issue of international engagement, which is
critical, as this Committee saw, when it enacted FIRRMA,
frankly.
As we get stronger, through the implementation of FIRRMA,
and our systems do a better and more thorough job of screening
foreign direct investment, we do need to be increasingly
cognizant that those malign actors are going to go to our
partners and try to get at that critical technology, that
critical infrastructure, that know-how, as you point out,
through other mechanisms.
And so working with our allies it will be a priority of
mine to help them buildup their capabilities like we built ours
up in FIRRMA, and my experience engaging with foreign partners
in doing so, I will leverage that experience, Senator, to work
to enhance that. Because FIRRMA also talked about accepted
foreign States, right, and giving an incentive for countries to
do that.
So you have my commitment that will be a focus of mine.
Senator Hagerty. I appreciate that. My observation, working
with our teams in the past, was that we have very talented
people but we have a dearth of talent as well. So it is a tough
process. It is one that requires certain expertise. And I would
love to hear your comments on the manpower aspect of this and
what your plans might be to recruit and enhance that.
Mr. Rosen. Certainly, Senator, and thank you for that. I am
not in the building so I have not been able to assess first-
hand. My understanding is that with FIRRMA the resources,
through filing fees and otherwise, have grown. The manpower has
grown in a very positive way. And so I am looking forward to
getting in and assessing that, and you certainly have my
commitment that if I identify gaps I will come back to this
Committee.
But in terms of the focus, I think that from what I have
seen on the outside the office is doing a good job and working
to implement and build those resources and devote the
resources, as you point out, to the priority of FIRRMA.
Senator Hagerty. Well, back to your initial commitment of
working with us, and again, my Subcommittee, I very much
appreciate that, because I want to make American the most
attractive place to invest capital. We have got great partners,
and we can deepen our economic alliance, and our economic
security begets national security.
So I want to make certain that we have a process that
facilitates the proper sort of investment, the proper sort of
partners, but at the same time protects intellectual property
and makes certain that it does not fall into the wrong hands.
So I look forward to working with you closely on that.
I would like to come to another aspect of CFIUS if I might,
and that has to do with the parties who are required to file
with Treasury for covered transactions. Over the years, the
Government has discovered that many transactions are finalized
that were not disclosed. They called them non-notified
transactions. And those transactions, once they are discovered,
then require CFIUS review. And once we determine that some of
those transactions might actually impose risks to our national
security they have to be unwound. Given your experience as an
attorney, I think you know how complicated that can be, how
disruptive that can be. It takes a lot of our manpower and it
really leads to many, many challenges.
So I would like to understand a little bit more how you
plan to encourage the parties that file covered transactions to
do so properly and how to make certain that we do not have
these non-notified transactions. Are there areas where you see
opportunity there?
Mr. Rosen. Yes. Thank you, Senator, and I agree with you
that we do want to encourage companies to come in the front
door. There is an informal engagement process with CFIUS that
is in place to allow companies to engage, to ask questions, and
the like. Through FIRRMA there was also a declaration process
put into place, and to your point about encouraging foreign
direct investments speedy, swift resolutions to the inquiry.
And so, Senator, if confirmed, I am going to be focused on
this issue. I am going to be looking at resources, because I do
want to make sure that benign investment flows efficiently and
effectively through the system while staying laser-focused on
national security.
Senator Hagerty. I will look forward to working with you on
that too, because I think a good communication program,
particularly with our U.S. side private equity, venture capital
investors, to let them know what the consequences are, what the
difficulty would be of having to unwind these transactions
could be very effective.
Thank you very much for your time. Ms. Gibson,
congratulations. I am going to submit my questions for you for
the record.
Thank you, Mr. Chairman.
Chairman Brown. Thank you, Senator Hagerty.
Thank you to the nominees today for being here and
providing testimony. I hope we can work together as a Committee
to move forward quickly on the nominations of both these two
qualified nominees.
For Senators who wish to submit questions for the hearing
record, as Senator Hagerty said he plans to, those questions
are due close of business on Monday, April 11th, at 5 p.m. For
the nominees, we would like you to have your responses back to
us by Monday, April 18th, at noon.
Thank you again for your testimony, and the Committee is
adjourned.
[Whereupon, at 10:48 a.m., the hearing was adjourned.]
[Prepared statements, biographical sketches of nominees,
responses to written questions, and additional material
supplied for the record follow:]
PREPARED STATEMENT OF CHAIRMAN SHERROD BROWN
The Committee meets today to consider the nominations of: Ms.
Ventris C. Gibson to be Director of the Mint; and Mr. Paul M. Rosen to
be Assistant Secretary of the Treasury for Investment Security.
We thank the nominees for appearing, and extend a warm welcome to
their families and friends in attendance and watching from home.
To the nominees, thank you for your willingness to serve our
country.
Ventris Gibson is the President's nominee to serve as the Director
of the Mint. The agency to which Ms. Gibson has been nominated is the
world's largest coin manufacturer.
In fiscal year 2021 alone, the Mint shipped 14.7 billion
circulating coins. The Mint operates six facilities and employs more
than 1,600 people.
It was also the only major world mint to maintain continuous
production throughout the pandemic. All of this is a testament to its
dedicated workers who design, produce, and protect our national assets.
For more than two centuries, the Mint has played an essential role
in providing the American people and businesses with secure, privacy-
respecting currency. It's the sole producer of circulating coins.
If confirmed, Ms. Gibson would be the first African American to the
lead the Mint. She represents yet another historic nomination by this
Administration.
Ms. Gibson has devoted more than 40 years to public service,
decades in top leadership positions throughout Government. A veteran of
the U.S. Navy, she currently serves as the Acting Director of the Mint.
Previously, Ms. Gibson served as the Director of Human Resources for
the District of Columbia.
Prior to her time with the D.C. Government, Ms. Gibson served in
high level leadership positions at the Departments of Health and Human
Services, Transportation, and Veterans Affairs.
I am glad you can be here with us today, Ms. Gibson. And thank you
for your many years of service to our country.
Paul Rosen is the President's nominee to serve as Assistant
Secretary of the Treasury for Investment Security. This is an important
national security position we created in 2018 through the passage of
this Committee's work on the bipartisan Foreign Investment Risk Review
Modernization Act, or FIRRMA.
If confirmed, Mr. Rosen would lead an office responsible for
implementing the Department's responsibilities as Chair of the
Committee on Foreign Investment in the United States, or CFIUS--an
interagency Committee that reviews certain foreign investments in U.S.
businesses.
Mr. Rosen previously held several senior leadership roles at the
Department of Homeland Security, including serving as Chief of Staff to
then-Secretary Jeh Johnson.
Prior to joining DHS, Mr. Rosen served as a Federal prosecutor at
the Department of Justice, counsel on the Senate Judiciary Committee,
and Staff Director to the Senate Caucus on International Narcotics
Control.
Mr. Rosen is well respected by the national security community.
On Monday, a bipartisan group of 85 national security and law
enforcement professionals--spanning Republican and Democratic
administrations--sent a letter urging swift consideration and
confirmation of Mr. Rosen. They wrote that ``Paul is the right person
with the right skills to safeguard U.S. national security when it comes
to foreign investment in the United States.''
The Fraternal Order of Police wrote to Ranking Member Toomey and
myself expressing its ``strong support'' of Mr. Rosen's nomination. I
ask that these two letters be entered into the record.
Thank you, Mr. Rosen, for your prior service to our country and
your willingness to serve once again.
Thanks again to the nominees for appearing here today. I look
forward to your testimony.
______
PREPARED STATEMENT OF SENATOR PATRICK J. TOOMEY
Mr. Chairman, thank you.
Mr. Rosen and Ms. Gibson, welcome. I commend you both for your
longstanding commitment to public service.
Mr. Rosen, you've been nominated for an important role at Treasury
leading the Committee on Foreign Investment in the United States, known
as CFIUS. CFIUS is an interagency body with the power to review, and,
in some cases, advise the president to block, foreign direct investment
into the United States, known as inbound FDI, on the grounds that
certain investments may erode America's technological advantages that
underpin our national security.
Maintaining our defense while upholding our economic prosperity is
a sensitive and challenging task. The broad, free flow of capital is a
fundamental part of our remarkably successful free market system.
In particular, inbound FDI is a source of much needed investment in
American businesses. From 2016 through 2020, between $150 billion and
$500 billion in FDI has flowed into the U.S. each year.
This inbound FDI can lower prices and increase the choices
available to American consumers, strengthen the American workforce,
increasing employment and wages, and fund research and development that
contributes to technological innovation and economic growth.
However, foreign Governments and their agents know that investing
in an innovative American firm can potentially give them access to its
technology. Such investments, coupled with the tech transfers that may
follow, have the potential to allow adversaries to make a technological
jump that can be used against our national security--all without having
to spend time and resources innovating themselves.
There's no more problematic, and systemic, threat in this regard
than China. As the U.S. intelligence community's latest annual threat
assessment says, ``China will remain the top threat to U.S.
technological competitiveness as Beijing targets key sectors and
proprietary commercial and military technology from U.S. and allied
companies and institutions. Beijing uses a variety of tools, from
public investment to espionage, to advance its technological
capabilities.''
Protecting against the threat of adversaries using FDI to harm our
national security is why we have CFIUS. But given the importance of
inbound FDI to our economy, it's vital that CFIUS remains laser focused
on screening for genuine national security threats while, at the same
time, not undermining the attractiveness of the United States as a
place to invest and innovate.
A slow CFIUS review process can disrupt individual deals. And a
pattern of disruption will discourage valuable FDI. Most importantly,
we must guard against CFIUS becoming a tool of economic protectionism.
Mr. Rosen, if confirmed, you'd be only our second Treasury
Assistant Secretary of Investment Security. This position was formally
created in 2018 by the Foreign Investment Risk Review Modernization
Act, or FIRRMA.
FIRRMA made several notable changes to CFIUS. Before FIRRMA, CFIUS
only reviewed transactions when a foreign person gained control or
majority ownership of a U.S. company.
FIRRMA expanded the scope of transactions that CFIUS can review to
include noncontrolling investments in certain U.S. businesses involved
in critical technology, critical infrastructure, the collection of
sensitive data on U.S. citizens, and certain real estate transactions
near military bases and sensitive infrastructure sites.
FIRRMA also created a fast-track process that allows companies to
potentially shorten the CFIUS review process through a mechanism called
a declaration, as opposed to filing a traditional notification.
In the 4 years since FIRRMA was enacted, CFIUS has been processing
an increasing number of transactions annually and appears to be doing
so in a manner consistent with FIRRMA's intent.
In 2019, around 94 companies sought CFIUS' approval for their
investments via the shorter declaration route. In 2020, that number
increased by around 25 percent. And it is my understanding we should
expect at least a similar increase in companies filing declarations in
2021 from 2020.
This trend suggests that the private sector is viewing the CFIUS
declaration option as a viable means of subjecting transactions to
Government review.
CFIUS is also increasingly approving a high percentage of
declarations. CFIUS approved 36 percent of declarations in 2019 and 65
percent in 2020. It is my understanding that CFIUS approved at least 65
percent of declarations in 2021 as well.
These data points suggest that the declaration process is useful
for CFIUS as well by allowing it to focuses its attention on the
transactions that merit the most scrutiny.
Given that CFIUS has its hands full doing this work, Congress and
the Administration must be very cautious about taking any actions that
would unduly burden, distract, or meddle with CFIUS' core mission. The
negative effects could be immense, both in terms of harm to our economy
and also harm to efficient and effective screenings by CFIUS.
Now turning to the U.S. Mint. Ms. Gibson has been nominated to
serve as the Director of the Mint, which was established in 1792 in the
great Commonwealth of Pennsylvania in Philadelphia.
The Founding Fathers understood that in order for the United States
to prosper it needed its own monetary system. The Mint continues to
play a vital role by manufacturing coins that Americans use every day.
It also produces precious metal and collectible coins. For the Mint to
thrive, it must continue to innovate and release new products that
resonate with the public.
I look forward to hearing from today's nominees.
______
PREPARED STATEMENT OF VENTRIS C. GIBSON
To Be Director of the Mint, Department of the Treasury
April 6, 2022
Thank you, Mr. Chairman, Ranking Member, and distinguished Members
of the Committee for allowing me to appear here today. With me today
are my children: my son Alexander and his wife Katherine, my daughter
Heather, and my son Charles. I am honored that the President nominated
me to serve as the Director of the U.S. Mint, a responsibility that I
do not take lightly; and I would like to thank Vice President Harris,
Secretary Yellen, and Deputy Secretary Adeyemo for their support.
My career in public service began more than 40 years ago when,
following high school, I joined the U.S. Navy. My time as a Navy Air
Traffic Controller in Tennessee, Cuba and Sicily was one of the most
rewarding experiences of my life.
After military service, I continued to serve my fellow veterans for
23 years at the Department of Veterans' Affairs. At VA, I advanced from
an entry level professional to one of VA's most senior executives--
Deputy Assistant Secretary. In those roles, I dedicated my life to our
Nation's veterans by further developing employment programs and
changing the diversity landscape of the Department.
In January 1998, I led the development of the Office of Resolution
Management at the VA, where I was responsible for handling the
Department's unlawful discrimination complaints and its alternative
dispute resolution cases. I was also responsible for the development,
articulation, and delivery of Department-wide human resources policies,
plans, and programs for 260,000 employees.
A highlight during my time at the VA was serving as one of the
first volunteers during the opening and dedication of the Vietnam
Veterans Memorial. We were called upon to assist family members and
friends in finding their loved ones' names on the wall. I can still see
and feel the tears of those mothers, fathers, brothers, sisters, and
fellow soldiers. For me, this moment crystalized our debt as a Nation
to these fallen heroes and how their loss of life preserved our freedom
and defended our democracy.
In 2003, the former Administrator for the Federal Aviation
Administration (FAA) Marion Blakey, asked me to join her team as FAA's
top human resources executive. In that role, I stabilized a human
resources environment in the middle of a transition to a centralized
model without negatively affecting the agency's mission. Then, in 2011,
after 35 years of service I retired. In 2014, I was pulled from
retirement and appointed to the Department of Health and Human Services
(HHS) as the Associate Deputy Assistant Secretary for Human Resources.
In that position, I worked with the Office of Personnel Management on
several initiatives that led to flexible-hiring programs for HHS.
In 2015, Mayor Muriel Bowser appointed me to her cabinet as the
city's Director of Human Resources, where I transformed the District of
Columbia's human capital organization into a high performing, results-
oriented organization. I managed a billion-dollar health benefits
program for 80 agencies and 37,000 employees.
Last fall, I was honored to join the U.S. Mint as Deputy Director.
The Mint has a rich and meaningful history, and it is the largest and
most respected Mint in the world. I would consider it a privilege and a
defining moment in my professional life to serve as Director.
If confirmed, I am ready to lead a workforce dedicated to
connecting America through coins. I will focus on people--as they are
key to the Mint's success; on our programs--from commemorative medals
to collectible coins to circulating coins; and on our performance--one
that is high performing and results oriented.
Thank you again for the opportunity to appear before the Committee
today, and I welcome your questions.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
______
PREPARED STATEMENT OF PAUL M. ROSEN
To Be Assistant Secretary of the Treasury for Investment Security,
Department of the Treasury
April 6, 2022
Chairman Brown, Ranking Member Toomey, distinguished Members of the
Committee--it is an honor to sit here before you as the President's
nominee to serve as the Assistant Secretary of the Office of Investment
Security for Treasury.
My life's journey into public service has roots in these very halls
going back nearly 50 years. In 1973, my parents met working in
Congress--my father, from California, a legislative assistant, and my
mother, originally from Southeast Washington, DC, a legislative
secretary--both working for Yvonne Brathwaite Burke, the first African-
American woman elected to Congress from California. My parents were
drawn to Capitol Hill by a desire to serve, which was a value instilled
by their parents, including by my grandfather who enlisted in the Army
to fight as a Corporal in World War II, and by my grandmother who
worked for 34 years at the U.S. Census Bureau.
My parents married and relocated to California, where they raised
my brother and me, instilling in us the same values of service,
integrity and hard work. My mother went on to teach elementary school
for 38 years, and my father practiced law with two friends while
continuing public service, volunteering on city commissions and arts
and education boards for more than two decades. Both, now in their 70s,
continue to work to this day. My brother also found his own calling in
community service: After a long and difficult battle with addiction, he
became a counselor at a rehabilitation facility and helps at-risk
youth, speaking to schools and providing adolescents with healthy tools
to cope with the stresses of life. I'm extremely proud that this summer
will mark his 18th year of sobriety.
My own path was greatly influenced by this history. After
graduating college, I packed a suitcase and bought a one-way ticket to
Washington, DC, with the goal of working on Capitol Hill. My first
opportunity was volunteering as an intern for the late Senator Carl
Levin, and later I worked as a staff assistant for then-Senator Joe
Biden. After attending law school and then clerking for a Federal
judge, I returned to the Senate to serve as a counsel on the Senate
Judiciary Committee, and then for another decade in various jobs at the
Justice Department and Department of Homeland Security working to
protect national security and public safety. I was drawn to these
roles, in part, from witnessing the scourge of illegal drugs and the
impact they've had on victims like my brother and so many others.
Like my parents did a half century ago, I met my wife Casey on this
journey, and we are blessed to have a beautiful baby girl. Casey is
with me here today, while our daughter is home in California with her
grandparents watching the hearing. I can't thank them and our entire
family enough for their love, support, and sacrifice.
The Committee on Foreign Investment in the United States, or CFIUS,
plays a vital role in protecting U.S. national security. As technology
advances at warp speed and the intentions and capabilities of our
adversaries expand, CFIUS, and the talented career public servants who
support it, are a critical gatekeeper in protecting the United States
from malign foreign investment while continuing to promote an open
investment climate. And there is perhaps no more consequential time in
our history than now to make sure that, working with this Committee,
CFIUS is successful in executing its critical national security
mission.
My professional path, experiences, and values have prepared me well
to fulfill the role of Assistant Secretary. My work as a prosecutor,
senior Government official and national security lawyer uniquely
position me to fully and faithfully execute Congress' statutory mandate
as set forth in the landmark Foreign Investment Risk Review
Modernization Act (FIRRMA), a vitally important bipartisan law that
updated the framework of the functions and authorities of CFIUS.
If confirmed, I would be honored to serve alongside the talented
and dedicated career professionals in the Office of Investment Security
and International Affairs to preserve an open investment environment
that supports economic growth and innovation while protecting U.S.
national security interests.
I look forward to your questions.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN BROWN
FROM VENTRIS C. GIBSON
Q.1. Where have you excelled in past positions in attracting,
hiring, and promoting people of color in positions in your
organization? Where might there be room for improvement?
A.1. In my previous positions, there were several opportunities
in which I led efforts to attract, hire, and promote people of
color that had meaningful and positive results. While I was
employed with the Department of Veterans Affairs (VA), former
Secretary Anthony Principi appointed me to chair a team that
focused on identifying ways to increase women in the Senior
Executive Service ranks. The report resulted in increased
representation of women in higher grade levels, managerial
positions, and the Senior Executive Service. The Secretary
personally recognized my efforts by awarding me the Secretary's
Merit Award for Excellence. During my tenure with the Federal
Aviation Administration (FAA), I worked collaboratively across
the organization to champion the Air Traffic Controller
Diversity Plan and set in motion the actions FAA needed to
undertake to recruit and hire a diverse population of highly
qualified applicants. The diverse applicant pool grew from less
than 15 percent to slightly over 40 percent as a result of our
expanded recruiting efforts. In addition, I championed a
memorandum of agreement between FAA and VA to train disabled
veterans for employment as Air Traffic Controllers. While
serving as the Associate Deputy Assistant Secretary for Human
Resources (H.R.) at the Department of Health and Human Services
(HHS), I ensured that the diversity organizations within HHS'
operating divisions worked in partnership with H.R.
organizations in recruiting, hiring, training, and promoting
people of color, women, and those with disabilities. My staff
and I worked tirelessly to incorporate new learning and
development programs for employees, to recruit equitably across
colleges and universities, and ensured that the path for
employment for those with disabilities included appropriate
workplace accommodations and assistance. Lastly, while employed
with the District of Columbia government, I created a number of
programs designed to ensure that all people had an opportunity
to excel. These included the High School Leadership Institute
which afforded monthly stipends to District high school
students while they participated in a mentoring and coaching
program in their career field of interest. The program was
highly successful, with graduates of this program going on to
attend college. I also ensured a wide range of diversity in
multiple employment programs, including the District Leadership
Program and Capital City Fellows. Further, I established City
University for employees to attend (virtually and in person) in
five separate career paths (i.e., information technology,
public works, medical administration, transportation, and human
resources). Prior to leaving D.C. Government, I established the
process for working with the private sector to train and
certify individuals seeking CDL licenses. This initiative was
designed to assist with attracting and retaining school bus
drivers. During my service as Deputy Director of the Mint, I
have identified key objectives that I believe are important to
ensure the success of the Mint and its employees: (a) ensuring
that managers provide effective leadership in diversity,
equity, inclusion, and accessibility; (b) holding all employees
accountable through performance for ensuring a workplace that
is free of discrimination, harassment, workplace violence, and
insensitivity; and (c) ensuring that all efforts undertaken are
fair, just, and equitable for all with a demonstrated
commitment to a workplace that is reflective of the American
people. Throughout my career, I have always looked for ways to
improve the organizations that I have led. If given the
opportunity to serve as Director, I will continue the efforts I
have already begun to achieve these objectives.
Q.2. What specific measures will you use to evaluate the
success of the U.S. Mint in understanding and addressing the
needs of Black, Indigenous, and people of color (BIPOC)? And,
will you work to keep Congress apprised, as appropriate, on the
progress being made on these measures?
A.2. As Deputy Director, I am implementing a series of
initiatives to ensure the success of the Mint in understanding
and addressing the needs of BIPOC, women, persons with
disabilities, and others. If I am confirmed, I am committed to
working with Congress, as appropriate, on the progress being
made at the Mint. Listed below are some examples of the
initiatives I am implementing:
Establishing the Office of Equity, which will provide
oversight and compliance of all diversity initiatives. Further,
this office will advise on policies, procedures, and practices,
and ensure community outreach.
Creating an Employee Experience Council comprised of Mint
employees from across the nation.
Separating EEO complaint processing from Diversity
Management and conducting root cause analysis of all
complaints. Upon review, determining which concerns are
systemic and which can be addressed through mediation or
collaborative conversation.
Expanding the Mint's mediation program beyond the EEO
complaint process.
Leveraging working relationships with the Mint's unions.
Providing relevant, targeted, and ongoing training for all
employees.
Providing a confidential email system for U.S. Mint
employees to express concerns.
Conducting anonymous assessments to determine the results
of our efforts and identify where we can further improve or
make adjustments.
Q.3. What is your plan for creating an inclusive working
environment for employees within your office?
A.3. My values are fairness, integrity, and trust. These values
were foremost in the development of what I call my ``blueprint
for change.'' This document provides details of the actions I
am undertaking as Deputy Director and would continue to
undertake into the future, if I have the privilege of being
confirmed. Some examples of my actions to date include:
Prepared a video for Mint employees explaining where we
are, where we need to go, and what it will take for us to be an
employer of choice and one that is perceived as having a strong
employee value proposition.
Recently hired a diversity expert who will serve as a
temporary consultant. His responsibilities are to advise on the
stand-up of the Equity Office, to ensure that its staff has the
appropriate expertise in the field of Diversity and Equity,
develop operating procedures, develop metrics and standards,
and build partnerships with external stakeholders.
Fostering an environment of open communications where
employees are free, without the fear of reprisal, to bring
matters forward.
Ensuring that the Mint will immediately address any acts of
unlawful discrimination, to include taking disciplinary or
adverse action, or debarment from Federal service, as
appropriate.
Require executives to brief on diversity, equity,
inclusion, and accessibility in their monthly organizational
performance reports (in progress).
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
FROM VENTRIS C. GIBSON
Q.1. Congressional Oversight--What is your philosophy on how
the Mint should approach and respond to Congressional
information requests (both documentary information and oral
testimony)?
A.1. If confirmed, I am committed to working through the
accommodations process to comply with Congressional requests
for information consistent with the constitutional and
statutory obligations of the Executive branch. In the past, the
Mint has been an effective resource to Congress on Mint-related
matters. If confirmed, under my leadership, this will continue
and I will ensure that we have an open line of communication
between Members of Congress, congressional staff, Committees,
and my office. Please know that I have always worked well with
members of Congress and with their staff. I am hopeful of
continuing such a relationship and building trust as well.
Q.2. If confirmed, do you intend to respond to information
requests differently depending on who is making the
Congressional information request (whether it is the chair of
the Congressional committee, the Ranking Member, or another
member of Congress)? Please answer ``yes'' or ``no.'' If your
answer is ``yes,'' please explain.
A.2. Congress plays an important oversight role, and I commit
to considering all congressional information requests. If
confirmed, I am committed to working through the accommodations
process to comply with Congressional requests for information
consistent with the constitutional and statutory obligations of
the Executive branch.
Q.3. Will you commit that, if confirmed, you will timely
respond to and fully comply with all information requests from
me? Please answer ``yes'' or ``no.'' If your answer is ``no,''
please explain.
A.3. See response to Question 2 above.
Q.4. Will you commit that, if confirmed, you will make yourself
and any other Mint employee expeditiously available to provide
oral testimony (including but not limited to briefings,
hearings, and transcribed interviews) to the Committee on any
matter within its jurisdiction, upon the request of either the
Chairman or Ranking Member? Please answer ``yes'' or ``no.'' If
your answer is ``no,'' please explain why.
A.4. See response to Question 2 above.
Q.5. Challenges Facing the Mint--What are the biggest
challenges currently facing the Mint?
A.5. The biggest challenge currently facing the Mint is supply
chain issues. We are constantly monitoring the supply chain
supporting the production of circulating coins, and I am
pleased to say that our efforts have allowed us to fulfill the
Federal Reserve's orders. The most pressing supply chain issue
currently is the availability of silver blanks that are
critical to both our bullion and numismatic programs. Some of
our Mint suppliers are still addressing pandemic-related
staffing and supply chain issues which have resulted in the
reduced silver blank supply. The shortage has forced the Mint
to make some tough decisions on the quantity of coins to be
produced. This year, the Mint suspended the Morgan and Peace
Silver Dollars due to the inability to produce to the necessary
quantity to meet demand. Overall, this has had an impact on the
quantity of numismatic and bullion coins that the Mint is able
to produce for several of our programs. The Mint continues to
work with suppliers to address this issue. If confirmed, I
would focus on the following three objectives to address supply
chain challenges: First, to ensure the successful operation and
production of circulating, bullion, and numismatic coins. This
entails providing leadership in how effective and efficient we
are in manufacturing coins and continuing the successful
partnership we have with the Federal Reserve. I am optimistic
about enhancing the relationship we have with other Mints
worldwide, the numismatic community, and increasing youth coin
collectors.
Second, to ensure that we have the workforce we need, now
and into the future, I plan to commission a team to develop a
``Future of Work'' plan that addresses succession planning,
core competencies needed for the Mint's various positions, a
career path framework that provides employees with a clear
roadmap to various occupations and expands how we recruit for
key positions. Third, to lead the organization in a manner that
reflects my core value of fairness, integrity, and trust, and
to serve the American people in an accountable, creditable, and
transparent manner. Furthermore, I will work to protect both
the assets entrusted to us and the law enforcement officers,
who protect and serve us each and every day.
Q.6. Engagement With Mint stakeholders--The Mint's operations
consist of large-scale manufacturing and the sale of retail
coin products to consumers, which makes it unique among
Government agencies. In 2021, the Mint brought in $5.4 billion
in revenue, made over $500 million in net income and
transferred $120 million to Treasury's General Fund, which is
used to reduce the national debt. According to the Mint's
annual report, the Mint has also transferred over $3.1 billion
to the Treasury's General Fund over the last 10 years. Some
stakeholders believe that experience with a manufacturing
company or other comparable for-profit management experience is
important for the Mint Director role.
How do you think your experience as a Government human
resources executive has prepared you to be the Director of the
Mint?
A.6. I have led organizations that served a population of
260,000 employees with the Department of Veteran Affairs,
55,000 with the Federal Aviation Administration, 92,000 with
the Department of Health and Human Services, and 37,000 with
the District of Columbia Government. These are highly complex
organizations at the Federal and local government levels. I was
responsible for developing and delivering programs, policies,
and procedures that impacted health care, aviation, emergency
management, legal, information technology, and so much more.
Further, in all my assignments, I was recognized with awards
and bonuses, and was often called upon to solve the most
difficult and complex organizational and people challenges.
Additionally, I have administered billion dollar budgets and
achieved cost savings in the millions of dollars. Over the last
6 months, I have served as the Deputy Director, managing the
day-to-day operations of the United States Mint for its nearly
1,700 employees across the four Mints (West Point,
Philadelphia, Denver and San Francisco), our facility at Fort
Knox, and the Headquarters in Washington, DC. My nearly 40
years of Government experience managing large organizations has
prepared me to oversee this organization and to ensure the
smooth and efficient production of nearly 14 billion coins
every year. I have already seen that the Director of the Mint
needs to call upon many skills and experiences that I have used
in other positions. I am confident that these experiences would
translate, and that I can bring to this position leadership in
strategic planning, process improvement methodologies,
organizational excellence, customer service initiatives, and
the necessary leadership to oversee a more than billion dollar
budget and thousands of employees. I have significant
leadership experience at the Federal and local level of
government. In many of these positions, I have been called upon
to take on responsibilities that required me to lead people and
lead change in the most sensitive, challenging, or secure
environment.
Q.7. What steps have you taken to understand the business
aspect of the Mint's operations?
A.7. Since becoming Deputy Director, I have traveled to all
Mint facilities to see each of their operations and talk to
employees and visit each shift. I have also visited with
several suppliers and the Mint's numismatic distribution center
to see their operations first hand. I have been thoroughly
briefed on process and production procedures by my staff;
holding several leadership meetings relevant to people,
programs, and performance; meeting with the Mint's protection
staff nationwide to understand how we protect our assets; and
meeting routinely with the Chief Financial Officer, Chief
Information Officer, Sales and Marketing, and Manufacturing
Directorates. Additionally, I have been building relationship
with the Members of the Citizens Coinage Advisory Committee and
the Cash Product Office. All of these have been helping me
better understand the specific business aspects of the Mint's
operations.
Q.8. How will you engage the numismatic (i.e., coins and
medals) community with the intent to gather feedback used to
gauge demand for Mint products and to aid product development?
A.8. There are several ways that I am planning to engage with
the numismatic community to gather feedback. Initially, I would
like to bring back the Numismatic Forum twice a year. This
event's purpose in the past was to gather individual members of
stakeholder organizations to share perspectives on the past,
present, and future of the numismatic hobby. The forums stopped
due to the coronavirus pandemic, and I am looking to bring back
this opportunity for the Mint and myself to engage with the
numismatic community. Additionally, I have also begun to engage
with the Citizens Coinage Advisory Committee. The Citizens
Coinage Advisory Committee was established by law and consists
of private citizens that advise the Secretary of the Treasury
on the themes and designs of all U.S. coins and medals. Its
purpose is to serve as an informed, experienced, and impartial
resource to the Secretary of the Treasury and represent the
interests of the American citizens and collectors. I have
already had the privilege in meeting with the Committee as a
whole and several Members individually, and I find them an
amazing source of information and perspective. Finally, I hope
to look at building a relationship with various numismatic
organizations, such as the American Numismatic Association and
American Numismatic Society.
Q.9. Racial Bias and Harassment at the Mint--In 2021, the Mint
commissioned a report following allegations of racism and
racial bias at the Mint that were reported in the press.
Treasury's Inspector General also is working on a related
inquiry into racial bias and harassment. That report is
expected to be released this year. It appears that the Mint may
have a culture problem.
How do you plan to improve the Mint's culture?
A.9. Since I joined the Mint in October 2021, and after having
reviewed the report and using it as a predecisional document in
action planning going forward, I have put in place what I call
a ``blueprint for change.'' This is based on my values of
fairness, integrity, and trust, because they are so essential
to leadership and the trust of the nearly 1,700 Mint employees.
The ``blueprint for change'' is a guide for how we address
employees' concerns and improve workplace culture. I have
developed a plan that includes establishing the Office of Chief
Equity and the appointment of a Chief Equity Officer to ensure
that all our actions will be taken with an eye towards equity.
In addition, I have hired a consultant to advise me in
effecting these changes. Other goals of mine that are in
progress include:
Foster an environment of open communications where
employees are free, without the fear of reprisal, to bring
matters forward.
Ensure managers are properly trained in fostering safe and
effective communications.
Immediately address any acts of unlawful discrimination to
include taking disciplinary or adverse action, or debarment
from Federal service, as appropriate.
Require executives to brief on diversity, equity,
inclusion, and accessibility in their monthly organizational
performance reports.
Q.10. If confirmed, will you commit to addressing the
shortcomings identified by the Treasury's Inspector General in
the forthcoming report?
A.10. Yes. I plan to use the Treasury's Inspector General
Report in continuing to strengthen and make positive change to
the workforce environment.
Q.11. Questions for the Record--Please describe with
particularity the process by which you answered these questions
for the record, including identifying who assisted you in
answering these questions along with a brief description of
their assistance.
A.11. These answers were drafted by me, along with the
assistance of the Director of the Mint's Office of Legislative
and Intergovernmental Affairs.
------
RESPONSES TO WRITTEN QUESTIONS OF
SENATOR VAN HOLLEN FROM VENTRIS C. GIBSON
Q.1. There have been a number of media reports detailing issues
at the U.S. Mint with respect to the workplace culture of the
agency. As you know, an internal report commissioned by the
Mint last year and produced by an independent human resources
consulting firm determined that the agency had a ``culture
problem'' and described a workplace with ``implicit bias''
against people of color. Mint employees have also reported
instances of overt acts of discrimination at the agency.
Ms. Gibson, these issues preceded your time at the U.S.
Mint. But as you know, Maryland is home to a large percentage
of the Federal workforce, including employees at the U.S. Mint.
On behalf of my constituents, I want to understand what your
goals are for fostering a healthy, respectful, and transparent
workplace where employees feel valued. How do you plan on
accomplishing these goals as Director of the Mint? If
confirmed, will you commit to incorporating feedback from
employees? And what metrics will you use to assess your
success?
A.1. As a leader, my core values of fairness, integrity, and
trust are vital in promoting a healthy, respectful, and
transparent workplace where employees feel valued. To
accomplish this, I have already created the Office of Chief
Equity and the Chief Equity Officer to look towards equity at
the Mint. In addition, I have hired a consultant to advise me
on ways to implement improvements to the Mint's workplace
culture. The ``blueprint for change'' that I have developed
will be a growing and breathing document, but one that will
instill diversity through designing employment, promotion
development and retention initiatives that take into account
diversity, equity, inclusion, and accessibility enhancements.
Some of these initiatives include:
Creating an Employee Experience Council comprised of Mint
employees from across the nation.
Have an informatics analyst develop an Equity Dashboard
with the specific measures we need to put in place to drive
success.
Separating EEO complaint processing from Diversity
Management and conducting root cause analysis of all
complaints. Upon review, determining which concerns are
systemic and which can be addressed through mediation or
collaborative conversation.
Expanding the Mint's mediation program beyond the EEO
complaint process.
Leveraging working relationships with the Mint's unions.
Providing ongoing training for all employees on key areas,
including diversity, equity, inclusion, and accessibility and
antiretaliation training.
Foster an environment of open communications where
employees are free, without the fear of reprisal, to bring
matters forward.
Ensure managers are properly trained in safe and effective
communications.
Ensuring that the Mint will immediately address any acts of
unlawful discrimination to include disciplinary or adverse
action, or debarment from Federal service, as appropriate.
Require executives to brief on diversity, equity,
inclusion, and accessibility in their monthly organizational
performance reports.
Providing a confidential emailing system for employees to
express concerns.
Creating the Office of Equity which will have oversight of
all diversity initiatives. Further, this office will advise on
policies, procedures and practices, and ensure community
outreach.
Conducting anonymous assessments to determine the results
of our efforts and identify where we can further improve or
make adjustments.
As part of any plan, feedback from employees is vital and
needs to be incorporated into assessing where we were and where
we are going. In particular, Mint employees' feedback will be
as part of the Employee Experience Council, through engagement
with the Mint's unions, and the confidential emailing system.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR HAGERTY
FROM VENTRIS C. GIBSON
Q.1. The Coin Modernization Act passed in 2010 required
materials testing and a Treasury report back to Congress with
``detailed recommendations'' that could be enacted into law--by
elected lawmakers--on new metallic materials for our coins.
Congress has already acted to explore the possibility of new
metallic coin materials. Do you agree that such a decision
should be made by Congress and not unilaterally by the Mint?
A.1. Yes, I believe that a decision should not be unilateral. I
think any decision should be one that is recommended by the
United States Mint, which pursuant to the Coin Modernization
Act, continues to conduct research on potential alternative
metals. The Mint is in a position to determine which metallic
compositions are appropriate, seamless, reduce risk to supply
chain, minimize adverse impact to the public, and produce cost
savings. However, that decision should not be made in a vacuum.
If confirmed, I would look forward to working with Congress on
enacting appropriate legislation.
------
RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN BROWN
FROM PAUL M. ROSEN
Q.1. Where have you excelled in past positions in attracting,
hiring, and promoting people of color in positions in your
organization? Where might there be room for improvement?
A.1. I believe that diverse workplaces promote creativity,
inclusion, and healthy working environments, and I have taken
steps throughout my career to advance these values. Whether it
was attracting or retaining talented and diverse attorneys,
professionals, and support staff while employed at a law firm,
or in my role as chief of staff at a 240,000-person cabinet-
level agency, I've worked to promote diverse workplaces
including in the personnel process. Diversity, equity, and
inclusion, particularly in the recruitment, hiring, and
retention processes, are important pillars of a healthy
organization, and if confirmed I am committed to continue to
promote and advance these principles. I am mindful that we
should always strive to do better, and if confirmed, I would
look for opportunities to improve and excel in promoting a
healthy and successful working environment.
Q.2. What specific measures will you use to evaluate the
success of the Department of the Treasury in understanding and
addressing the needs of Black, Indigenous, and people of color
(BIPOC)? And, will you work to keep Congress apprised, as
appropriate, on the progress being made on these measures?
A.2. If confirmed, I look forward to working to ensure the
Office of Investment Security promotes diversity, equity, and
inclusion efforts, and supports the needs of its dedicated
career public servants, including Black, Indigenous, and people
of color. We have an obligation to our public servants to
advance the office's mission while constantly assessing and
reassessing their needs to ensure we operate in a healthy and
productive environment that provides opportunity for all. If
confirmed, I would be pleased to work with you and with
Congress on these and other important issues in the Office of
Investment Security.
Q.3. What is your plan for creating an inclusive working
environment for employees within your office?
A.3. Creating, maintaining, and promoting an inclusive working
environment is an important aspect of any successful
organization, and one that as a manager I have and will
continue to take very seriously. To do so, I believe in
encouraging open and frank discussions, free exchange of ideas,
providing concrete and meaningful opportunities for junior
staff, encouraging different viewpoints from diverse
backgrounds, and providing concrete ways for everyone to
contribute to the important mission of the Office of Investment
Security. This is a core tenet of how I have worked to manage
teams both in and out of Government and, if confirmed,
promoting and advancing an inclusive work environment will be a
priority.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
FROM PAUL M. ROSEN
Q.1. Congressional Oversight--What is your philosophy on how
the Committee on Foreign Investment in the United States
(CFIUS) should respond to Congressional information requests
(both documentary information and oral testimony)?
A.1. I am committed to keeping Congress informed about the
activities of CFIUS. My philosophy is that CFIUS should provide
documentary information and oral testimony to enable Congress'
important oversight function, consistent with the oversight
requirements set forth in section 721 of the Defense Production
Act, as amended.
Q.2. If confirmed, do you intend to respond to information
requests differently depending on who is making the
Congressional information request (whether it is the chair of
the Congressional committee, the Ranking Member, or another
member of Congress)? Please answer ``yes'' or ``no.'' If your
answer is ``yes,'' please explain.
A.2. No, I am committed to keeping Congress informed about the
activities of CFIUS. I recognize that Congress plays an
important oversight role regarding Executive branch activities,
and I recognize the importance of transparency in Government.
If confirmed, I pledge to work through the process to comply
with Congressional requests for information consistent with the
constitutional and statutory obligations of the Executive
branch.
Q.3. Will you commit that, if confirmed, you will timely
respond to and fully comply with all information requests from
me? Please answer ``yes'' or ``no.'' If your answer is ``no,''
please explain.
A.3. Yes, I am committed to keeping Congress informed about the
activities of CFIUS. I recognize that Congress plays an
important oversight role regarding Executive branch activities,
and I pledge to thoughtfully consider all Congressional
information requests, recognizing the importance of
transparency in Government. If confirmed, I pledge to work
through the process to comply with Congressional requests for
information consistent with the constitutional and statutory
obligations of the Executive branch.
Q.4. Will you commit that, if confirmed, you will make yourself
and any other CFIUS employee expeditiously available to provide
oral testimony (including but not limited to briefings,
hearings, and transcribed interviews) to the Committee on any
matter within its jurisdiction, upon the request of either the
Chairman or Ranking Member? Please answer ``yes'' or ``no.'' If
your answer is ``no,'' please explain why.
A.4. I recognize that oral testimony plays an important role in
Congress' oversight responsibilities regarding Executive branch
activities. If confirmed, I commit to appear before the
Committee regarding Congressional requests consistent with the
constitutional and statutory obligations of the Executive
branch
Q.5. CFIUS--CFIUS is tasked with screening inbound foreign
direct investment for national security concerns. In your view,
how should CFIUS balance the importance of maintaining an open
investment climate in the United States with the protection of
U.S. national security?
A.5. CFIUS is and should be focused solely on protecting
national security while maintaining an open investment climate,
which supports economic growth, employment, and innovation. I
understand that there are several protections in place to
accomplish this objective, including: CFIUS' statutory mandate
to focus only on national security and not broader foreign
policy issues; a case-by-case review of transactions and the
use of mitigation to the extent possible, which allows
transaction parties and the U.S. economy to benefit
economically from the transaction while protecting U.S.
national security; adherence to statutory timelines that give
businesses confidence in CFIUS processes; and robust public
engagement, including through notice and comment on CFIUS'
regulations. I commit to maintaining these important guardrails
and strengthening them if needed.
Q.6. The Foreign Investment Risk Review Modernization Act of
2018 (FIRRMA) recommended that CFIUS establish a process for
exchanging information with U.S. allies and partners to
facilitate coordinated action with respect to trends in FDI and
technology that pose national security risks. How do you intend
to implement this recommendation?
A.6. Protecting our national security from malign investments
is of the utmost importance, and working with allies and
partners to address risks to our collective security is
essential. As Congress has strengthened CFIUS' authorities, we
must ensure that risk does not migrate to other jurisdictions.
I understand that Treasury, together with other CFIUS member
agencies, has engaged extensively with allies around the world,
including Five Eyes and G7 countries, EU Member States, and
other partners in Europe, the Middle East, Latin America, and
Asia. These are important engagements and partnerships that, if
confirmed, I would support and continue. CFIUS has been
instrumental in fostering a growing international consensus
around the need to screen foreign investment for national
security risks while maintaining an open investment
environment. I understand that in the past 2 years alone, over
30 countries have taken action to strengthen or create foreign
investment review mechanisms focused on national security. You
have my commitment to continue to strengthen this engagement
and to further implement this recommendation.
Q.7. How do you intend to identify and evaluate ``non-
notified'' transactions that merit CFIUS' review?
A.7. CFIUS has various methods to identify non-notified
transactions, including through interagency referrals, tips
from the public, media reports, use of commercial databases,
and Congressional notifications. Treasury has--in the spirit of
FIRRMA--centralized many of these functions within the Office
of Investment Security, though it works hand-in-glove with all
CFIUS member agencies. Consistent with section 721 of the
Defense Production Act, as amended (Section 721), I understand
that CFIUS evaluates the national security considerations of a
covered non-notified transaction through analysis of the
potential risk posed by the transaction. CFIUS' evaluation of
the extent to which the nature of the U.S. business presents
susceptibility to the impairment of U.S. national security
takes into special account foreign investment into U.S.
businesses with critical technology, critical infrastructure,
and sensitive personal data, each as defined in CFIUS'
regulations.
I intend to ensure that CFIUS continues to use all
available means to expeditiously identify and process non-
notified transactions and, if necessary, work with Congress to
ensure that CFIUS has the necessary tools to accomplish this
important mission.
Q.8. Will you commit to have CFIUS brief my staff, in person,
at regular intervals to discuss notable transactions that CFIUS
has made a final determination about? Such a briefing may occur
in an appropriately secure (classified) setting.
A.8. Yes. In addition to the Annual Report to Congress and the
required certifications that accompany every reviewed
transaction, I will continue the existing practice of having
CFIUS regularly brief congressional staff on specific
transactions for which the Committee has reached a final
determination. CFIUS provides these briefings upon request, and
I will happily continue facilitating these briefings,
consistent with the oversight requirements set forth in Section
721.
Q.9. Questions for the Record--Please describe with
particularity the process by which you answered these questions
for the record, including identifying who assisted you in
answering these questions along with a brief description of
their assistance.
A.9. I coordinated with staff in the Department of the
Treasury's Office of Legislative Affairs and other relevant
offices on drafting and technical input. Treasury staff also
provided to me public information regarding the Department's
existing positions and policies.
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RESPONSES TO WRITTEN QUESTIONS OF
SENATOR MENENDEZ FROM PAUL M. ROSEN
Q.1. One of the provisions that I authored in FIRRMA requires
CFIUS to develop regulations to ensure that State-owned
entities are declaring their transactions with CFIUS and not
using complex financial structures to conceal their ownership
or evade CFIUS review.
Do you agree that CFIUS needs to do more to evaluate the
extent of foreign Government control or influence over foreign
firms seeking to invest in the United States?
A.1. I understand that CFIUS reviews and requests extensive
information related to foreign Government control or influence
over foreign acquirers with transactions before the Committee.
You have my commitment to ensure such relationships are
thoroughly evaluated in each review.
Q.2. Will you commit to implementing this provision of FIRRMA
so that foreign Governments seeking to invest in critical
Americans industries are required to file declarations with
CFIUS?
A.2. Yes. I understand that this provision of FIRRMA was
implemented as a legal matter in CFIUS' current regulations.
Specifically, filings are mandatory when a foreign Government
has a substantial interest in a foreign person who acquires a
substantial interest in certain categories of U.S. businesses,
as set forth in FIRRMA and further defined by regulation. You
have my commitment to implement this provision in practice.
Q.3. Are there additional disclosure requirements--on
beneficial ownership, for example--that you think are necessary
for State-owned entities that want to invest in the U.S. or
access our financial markets?
A.3. Identifying the ultimate beneficial ownership in a given
transaction is an important part of CFIUS' national security
review. My understanding is that CFIUS currently has the
necessary authority to obtain information on the beneficial
ownership of any foreign acquirer. However, you have my
commitment that, if confirmed and if necessary, I will work
with Congress to ensure that CFIUS has the necessary tools to
obtain any necessary beneficial ownership information to assess
the national security risks of any given transaction.
Q.4. Another provision I authored in FIRRMA requires CFIUS to
establish procedures for the recusal of members that have a
conflict of interest. Will you commit to working with my office
to fully implement this provision?
A.4. Yes. I understand that Treasury already has internal
procedures in place to facilitate recusals from CFIUS matters
that give rise to conflicts of interest. I will instruct my
staff to continue using these procedures and revise them if the
need arises. I would also be happy to work with your office.
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RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARREN
FROM PAUL M. ROSEN
Q.1. President Biden's Ethics Pledge (Executive Order No.
13989), to which you are bound, requires that, for at least 2
years, you do not ``participate in any particular matter
involving specific parties that is directly and substantially
related to [your] former employer or former clients, including
regulations and contracts.'' But for you to have the full
confidence of Congress and the American people, I believe more
is required.
I have introduced legislation, the Anti-Corruption and
Public Integrity Act, that would improve ethics standards and
restore Americans' confidence in Government officials. This
legislation would require senior Government officials and White
House staff to divest from privately owned assets that could
present conflicts, including large companies and commercial
real estate; it would require Executive branch employees to
recuse from all issues that might financially benefit
themselves or a previous employer or client for at least a 4-
year period; and it would close the revolving door by banning
officials from lobbying the agency at which they used to work,
and prohibiting the world's largest companies from hiring or
paying any former senior Government official for 4 years after
they leave Government service.
Although Congress has not yet passed this legislation, it
sets clear standards that will allow you and other officials to
serve free of the taint of financial conflicts of interests,
help reduce the speed of the revolving door, and reassure the
American public that you are working for them, rather than on
behalf of past or future private-sector employers. These are
standards that you should voluntarily seek to meet, and
commitments I have secured other high-level Administration
officials.
Accordingly:
1. Will you commit to recusing yourself from matters that
might have a direct and predictable effect on the
financial interests of your former employers or clients
for a period of 4 years upon your confirmation?
2. Will you commit not to seek a waiver from these recusals?
3. Will you commit not to seek employment or compensation
from any company that you interact with during your
time in Government for a period of 4 years after
leaving Government service?
A.1. I very much appreciated your questions during my
confirmation hearing, and thank you as well for your leadership
in this important area. I take very seriously the obligation--
in both private and public life--of preserving the public trust
and avoiding conflicts of interest, both in actuality and in
appearance. Throughout my career in public service and in
practice as an attorney, I have always taken my ethics
responsibilities seriously. During 13 years of service in
Congress and the Executive branch, I worked in various
positions, including as a prosecutor where I pursued justice
for the victims of financial fraud from the 2008 financial
crisis. I am also proud to have obtained a conviction against a
bank employee who took bribes and breached his ethical
obligations to consumers and to the public. The Biden-Harris
administration has set the highest ethical standards of any
Administration for its political appointees, and as part of my
nomination I have committed to also fully abide by all such
requirements. I have worked closely with both the Treasury
Department and the Office of Government Ethics, and made
extensive ethics commitments that are documented in my ethics
agreement. In addition, I am willing to voluntarily commit to
additional requirements in response to your requests. Under the
Biden-Harris ethics pledge, I will recuse myself for a period
of 2 years from participating personally and substantially in
any particular matter involving specific parties in which I
know that a former employer or client is a party or represents
a party. If confirmed, I will commit to extend this recusal
term from 2 years to 4 years. I will also work closely with
Treasury's career ethics officials to ensure a comprehensive
screening process for the required recusals. I do not expect or
intend to seek a waiver from these recusals described above
and, pursuant to your request, I pledge not to do so. I also
commit to fully and faithfully adhere to all of my post-
Government employment obligations, in full compliance with
applicable ethics rules, including under Federal law and the
Biden-Harris administration's ethics pledge. In addition, I
will commit not to seek employment as a lobbyist for a period
of 4 years after leaving Government service. If confirmed, I
commit that I will uphold the highest standards of integrity
and ethical conduct. Thank you again for your leadership and
consideration of my nomination to this important national
security role.
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RESPONSES TO WRITTEN QUESTIONS OF SENATOR HAGERTY
FROM PAUL M. ROSEN
Q.1. CFIUS often pursues mitigation measures to address
national security vulnerabilities identified in covered
transactions. These measures increase confidence in approving a
transaction, but the volume and complexity of the mitigation
arrangements agreed to over the years has created a significant
and ongoing enforcement challenge, adding cost both at the
start and going forward. How will you reduce the number of
cases settled with mitigation, simplify the mitigation
agreements, and improve monitoring and enforcement without
increasing resources?
A.1. Ensuring that benign investment that is subject to CFIUS
jurisdiction flows quickly and efficiently is an important
aspect of CFIUS' work. When transactions do raise national
security risks, however, carefully crafted mitigation
agreements are important tools for addressing those risks
arising from a given transaction. Mitigation must be based on a
risk-based analysis and is only considered if it is reasonably
calculated to be effective, verifiable, and monitorable over
the long term. As required by FIRRMA, I intend to ensure that
CFIUS frequently reviews the appropriateness of mitigation
arrangements to terminate, phase out, or otherwise amend such
mitigation arrangements if a national security risk is no
longer present. To improve monitoring and enforcement without
increasing resources, I will focus my efforts on ensuring
effective interagency cooperation, enhancing staff training to
further hone the skills needed to identify and address
compliance issues, and leveraging technical solutions to
improve record-keeping and metrics. Under my leadership, if
confirmed, CFIUS will continue to consider mitigation only when
it is appropriate, adequate, and reasonably scoped to address
the national security risk in a given transaction.
Additional Material Supplied for the Record
LETTERS SUBMITTED IN SUPPORT OF NOMINEE PAUL M. ROSEN
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]