Liberal groups urge Schumer to reject Bayh for Banking gavel

A collection of left-leaning groups are mounting a public campaign to push Senate Democrats to make the Banking Committee less friendly to banks.

In a letter sent to Sen. Charles Schumer (D-N.Y.) Thursday, the group specifically urged him to rule out the possibility that Evan Bayh, a former Democrat from Indiana running to regain his old Senate seat, could somehow take control of the panel.

{mosads}The theory that Bayh, who previously served in the Senate from 1999 to 2011 before not seeking reelection, could leapfrog to the top of the committee has been floating in financial circles for weeks. The thinking goes that Bayh could regain his old seniority from his previous term, placing him ahead of Sen. Sherrod Brown (D-Ohio), currently the top Democrat on the GOP-led panel.

If Democrats regain control of the Senate, the seat currently occupied by Brown would become the chairman’s and would dictate the panel’s agenda. And Schumer, who also sits on the committee, is expected to take over as Senate Majority Leader following the retirement of Sen. Harry Reid (D-Nev.).

Brown has established a reputation as a strong big bank critic, while Bayh, who took jobs with private equity firm Apollo Global Management and the U.S. Chamber of Commerce after leaving office, is viewed as friendly face for the industry.

Such a theory has been dismissed by some committee watchers. One Senate Democratic aide said there is “no doubt” Brown will have the committee’s top Democratic spot in 2017.

But the groups now want to see Schumer explicitly rule it out.

“Granting Bayh seniority from his previous tenure in the Senate and installing him as chair would seemingly be without precedent,” the groups wrote. “The financial industry is floating his name to the media in a brazen, cynical attempt to tilt the Committee’s membership even further toward Wall Street.”

The letter was signed by a coalition of 10 liberal groups, including CREDO Action, Democracy for America, MoveOn.org, and Rootstrikers.

The letter strikes at one of the central tensions regarding Democrats on the Banking Committee, as the panel contains some of the most liberal members of the chamber, as well as some of its most moderate.

Sen. Elizabeth Warren (D-Mass.) has carved out a spot as perhaps the panel’s most visible member, making up for her relatively junior spot by frequently drawing attention for her cutting takedowns of industry witnesses and regulators. Other liberals, like Brown and Sen. Jeff Merkley (D-Ore.), also hold seats on the committee.

But the panel, which is a fundraising heavyweight thanks to its oversight of the financial sector, also is home to several moderate Democrats, like Sens. Mark Warner (D-Va.), Heidi Heitkamp (D-N.D.) and Joe Donnelly (D-Ind.).

Thursday’s letter marks an explicit push from the left to beef up the liberal ranks of that panel, with an eye toward pushing even stricter rules on Wall Street.

“The Committee already conspicuously harbors several of the Democratic Caucus’s most conservative, Wall Street-friendly members. For the Party to live up to the promise of its new platform, which demands a stronger financial regulatory framework, the Senate Banking Committee next session must include more members with a demonstrated commitment to the work of financial reform,” the groups wrote.

But to start with, the groups want to guarantee that Bayh can’t get his hands on the Banking gavel. Bayh is currently in a tight race against Rep. Todd Young (R) to regain that seat following the retirement of Sen. Dan Coats (R). Polls show to two running neck and neck.

This post updated at 1:54 pm.