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37–781—PDF 2006

S. HRG. 109–979

NOMINATIONS OF ANTHONY RYAN, PHILLIP

SWAGEL, DEAN PINKERT, IRVING WILLIAMSON,

DANA BILYEU, AND MARK WARSHAWSKY

HEARING

BEFORE THE

COMMITTEE ON FINANCE

UNITED STATES SENATE

ONE HUNDRED NINTH CONGRESS

SECOND SESSION

ON THE

NOMINATIONS OF

ANTHONY RYAN, TO BE ASSISTANT SECRETARY FOR FINANCIAL MARKETS, DEPARTMENT OF THE TREASURY; PHILLIP SWAGEL, TO BE ASSISTANT SECRETARY FOR ECONOMIC POLICY, DEPARTMENT OF THE

TREASURY; DEAN PINKERT, TO BE A MEMBER OF THE U.S. INTERNATIONAL TRADE COMMISSION; IRVING WILLIAMSON, TO BE A MEMBER OF THE U.S. INTERNATIONAL TRADE COMMISSION; DANA

BILYEU, TO BE A MEMBER OF THE SOCIAL SECURITY ADVISORY

BOARD, SOCIAL SECURITY ADMINISTRATION; AND MARK WARSHAWSKY, TO BE A MEMBER OF THE SOCIAL SECURITY ADVISORY

BOARD, SOCIAL SECURITY ADMINISTRATION

DECEMBER 5, 2006

(

Printed for the use of the Committee on Finance

COMMITTEE ON FINANCE

CHARLES E. GRASSLEY, Iowa, Chairman

ORRIN G. HATCH, Utah

TRENT LOTT, Mississippi

OLYMPIA J. SNOWE, Maine

JON KYL, Arizona

CRAIG THOMAS, Wyoming

RICK SANTORUM, Pennsylvania

BILL FRIST, Tennessee

GORDON SMITH, Oregon

JIM BUNNING, Kentucky

MIKE CRAPO, Idaho

MAX BAUCUS, Montana

JOHN D. ROCKEFELLER IV, West Virginia

KENT CONRAD, North Dakota

JAMES M. JEFFORDS (I), Vermont

JEFF BINGAMAN, New Mexico

JOHN F. KERRY, Massachusetts

BLANCHE L. LINCOLN, Arkansas

RON WYDEN, Oregon

CHARLES E. SCHUMER, New York

KOLAN DAVIS, Staff Director and Chief Counsel

RUSSELL SULLIVAN, Democratic Staff Director

(II)

(III)

C O N T E N T S

OPENING STATEMENTS

Page

Grassley, Hon. Charles E., a U.S. Senator from Iowa, chairman, Committee

on Finance ............................................................................................................ 1

Rockefeller, Hon. John D., IV, a U.S. Senator from West Virginia ..................... 5

ADMINISTRATION NOMINEES

Ryan, Anthony, nominated to be Assistant Secretary for Financial Markets,

U.S. Department of the Treasury, Washington, DC ......................................... 4

Swagel, Dr. Phillip, nominated to be Assistant Secretary for Economic Policy,

U.S. Department of the Treasury, Washington, DC ......................................... 6

Pinkert, Dean, nominated to be a Member of the U.S. International Trade

Commission, Washington, DC ............................................................................. 6

Williamson, Irving, nominated to be a Member of the U.S. International

Trade Commission, Washington, DC .................................................................. 7

Bilyeu, Dana, nominated to a Member of the Social Security Advisory Board,

Social Security Administration, Baltimore, MD ................................................ 8

Warshawsky, Hon. Mark, nominated to be a Member of the Social Security

Advisory Board, Social Security Adminstration, Baltimore, MD ..................... 9

CONGRESSIONAL WITNESS

Rangel, Hon. Charles B., a U.S. Representative from New York ........................ 3

ALPHABETICAL LISTING AND APPENDIX MATERIAL

Baucus, Hon. Max:

Prepared statement .......................................................................................... 17

Bilyeu, Dana:

Testimony .......................................................................................................... 8

Prepared statement .......................................................................................... 20

Biographical information ................................................................................. 22

Responses to questions from committee members ......................................... 29

Byrd, Hon. Robert C.:

Prepared statement .......................................................................................... 31

Clinton, Hon. Hillary Rodham:

Prepared statement .......................................................................................... 33

Grassley, Hon. Charles E.:

Opening statement ........................................................................................... 1

Pinkert, Dean:

Testimony .......................................................................................................... 6

Prepared statement .......................................................................................... 34

Biographical information ................................................................................. 36

Responses to questions from committee members ......................................... 41

Rangel, Hon. Charles B.:

Testimony .......................................................................................................... 3

Rockefeller, Hon. John D., IV:

Opening statement ........................................................................................... 5

Ryan, Anthony:

Testimony .......................................................................................................... 4

Prepared statement .......................................................................................... 49

Biographical information ................................................................................. 51

Responses to questions from committee members ......................................... 59

Page

IV

Swagel, Dr. Phillip:

Testimony .......................................................................................................... 6

Prepared statement .......................................................................................... 60

Biographical information ................................................................................. 61

Responses to questions from committee members ......................................... 71

Warshawsky, Hon. Mark:

Testimony .......................................................................................................... 9

Prepared statement .......................................................................................... 72

Biographical information ................................................................................. 73

Responses to questions from committee members ......................................... 90

Williamson, Irving:

Testimony .......................................................................................................... 7

Prepared statement .......................................................................................... 93

Biographical information ................................................................................. 95

Responses to questions from committee members ......................................... 105

(1)

NOMINATIONS OF ANTHONY RYAN, TO BE ASSISTANT SECRETARY FOR FINANCIAL MARKETS, DEPARTMENT OF THE TREASURY;

PHILLIP SWAGEL, TO BE ASSISTANT SECRETARY FOR ECONOMIC POLICY, DEPARTMENT OF THE TREASURY; DEAN PINKERT,

TO BE A MEMBER OF THE U.S. INTERNATIONAL TRADE COMMISSION; IRVING

WILLIAMSON, TO BE A MEMBER OF THE

U.S. INTERNATIONAL TRADE COMMISSION;

DANA BILYEU, TO BE A MEMBER OF THE

SOCIAL SECURITY ADVISORY BOARD, SOCIAL SECURITY ADMINISTRATION; AND

MARK WARSHAWSKY, TO BE A MEMBER OF

THE SOCIAL SECURITY ADVISORY BOARD,

SOCIAL SECURITY ADMINISTRATION

TUESDAY, DECEMBER 5, 2006

U.S. SENATE,

COMMITTEE ON FINANCE,

Washington, DC.

The hearing was convened, pursuant to notice, at 12:20 p.m., in

room SD–215, Dirksen Senate Office Building, Hon. Charles E.

Grassley (chairman of the committee) presiding.

Present: Senator Rockefeller.

OPENING STATEMENT OF HON. CHARLES E. GRASSLEY, A U.S.

SENATOR FROM IOWA, CHAIRMAN, COMMITTEE ON FINANCE

The CHAIRMAN. I welcome six nominees to the Finance Committee. Each of them, for their respective appointments, brings a

great deal of experience to those positions. I hope you are all eager

to get to work; I am sure you would not have accepted the position

if you were not. You are probably over-eager in this sense, that you

wish Congress had taken care of this a few weeks ago.

I welcome Anthony Ryan, nominee to be Treasury Assistant Secretary for Financial Markets. He currently serves at the Treasury

Department as a Senior Advisor to the Secretary.

2

Next, Phillip Swagel, to be Assistant Secretary for Economic Policy within Treasury. He is currently a resident scholar at the

American Enterprise Institute.

Then we have nominees for the International Trade Commission,

each very well qualified: Mr. Irving Williamson, who has had a diverse career in international trade, as well as policy, spending 18

years as a Foreign Service Officer at the State Department before

moving to work as a manager of trade policy at the Port Authority

of New York and New Jersey, then serving 5 years as Deputy General Counsel in the office of the U.S. Trade Representative, most

recently coming before the committee as president of Williamson

International Trade Strategies, a consulting firm on international

trade law.

Then Dean Pinkert, who has had an extensive career in administration and application of the U.S. trade laws. He has spent over

13 years in the Office of Chief Counsel, Import Administration, Department of Commerce, practiced international trade law privately,

and he served as trade and judicial counsel to our colleague, Senator Byrd.

We welcome also two nominees for the Social Security Advisory

Board, Dana Bilyeu and Mark Warshawsky. They both have a

great deal of experience in retirement policy and will serve well

there.

Once again, I welcome you. With that, I would put a statement

in the record for Senator Baucus.

[The prepared statement of Senator Baucus appears in the appendix.]

The CHAIRMAN. I thought that there would be other Senators. According to my records, there were other Senators who wanted to introduce constituents. Regardless, if we have statements from them,

we will put them in the record, because I am sure they are very

proud to welcome you here as their constituents, or previous relationships you have had through government and policy, working

with them.

We do not swear you in, as some committees do, so we are not

going to go through that formality. We never do. But we would like

to have, in the turn that I introduced you, before you give your

statement, Mr. Ryan, would you like to introduce family and

friends who are here with you? And we would ask people to stand

as you are introduced. This is a custom in this committee. We do

not want to embarrass anybody, but we are sure you are proud of

them and they are proud of you.

Mr. RYAN. Chairman Grassley, I would welcome that opportunity. I would very much like to introduce my wife, Ann Ryan, as

well as our four children. Also joining me today are my mother, sister, brother, and brother-in-law.

The CHAIRMAN. Welcome. Welcome to the committee.

Now, Dr. Swagel?

Dr. SWAGEL. Thank you, Chairman Grassley. I, too, would like

to welcome my family. With me today, sitting behind me, are my

wife, Judith Hellerstein, and my mother, Deanna Epstein. Our

three children are in school today.

The CHAIRMAN. All right. Thank you.

Now, Mr. Pinkert?

3

Mr. PINKERT. Thank you, Chairman Grassley. With me today are

my mother, Jean Pinkert, and my brother, sitting directly behind

her, Carl Pinkert, my daughter, Rose Pinkert, sitting directly behind me, and her mother, Penelope Naas.

The CHAIRMAN. Thank you.

Mr. Williamson?

Mr. WILLIAMSON. Thank you, Mr. Chairman.

The CHAIRMAN. Congressman Rangel, why do you not come up

here and sit, please.

Mr. Williamson, while he is coming, would you continue to introduce your family?

Mr. WILLIAMSON. Yes. With me today are my wife, Cheryl

Parham, my son, Patrick, my sister, Karen Williamson, my motherin-law, Rose Parham, and my brother-in-law, Gregory Parham.

The CHAIRMAN. Did everybody stand? All right. Thank you.

Now, Ms. Bilyeu?

Ms. BILYEU. Mr. Chairman, with me today are a group of friends

of mine that I have worked with over the years: Jeannine MarcoRaymond, Kathy Idleberg, and Leon and Mary Sue Wexler.

The CHAIRMAN. All right. Thank you all for being supportive of

her.

Now, Dr. Warshawsky?

Dr. WARSHAWSKY. Mr. Chairman, I would be pleased to introduce

my wife, Barbara Warshawsky.

The CHAIRMAN. All right. Thank you.

Now I will call on Congressman Rangel.

STATEMENT OF HON. CHARLES B. RANGEL,

A U.S. REPRESENTATIVE FROM NEW YORK

Congressman RANGEL. Thank you so much, Mr. Chairman. I am

so proud to support President Bush’s nominee for this great opportunity, not only for Mr. Williamson, but for our great Congressional

district, of which you are a constituent, and for our great country.

This is a time, as you well know, Mr. Chairman, when globalization has set in. It is not a part of just building up our economy

for prosperity, but I think it plays a large part in terms of our foreign policy.

To have someone who has the experience, as you said, with the

State Department, as Deputy Counsel to the U.S. Trade Representative, a person who understands not only the importance of trade,

but the impact that it has on our constituents, both yours and

mine, it is a great opportunity for our country, and I am just so

proud in knowing him and, for decades, the great contribution he

has made to our country.

I certainly support his confirmation by you and your colleagues,

and support the President for his wisdom in selecting someone this

articulate, this bright, who is a defender of workers’ rights, but also

a defender of our country’s free trade globalization policy. So, it is

an honor for me, and I congratulate him and his family for their

support for this great candidate.

Thank you so much for this opportunity.

The CHAIRMAN. Well, we thank you very much, Congressman

Rangel, for coming and being here to support. We had other members who were going to come and they were not able to come, so

4

I will put their statements in the record. I appreciate very much

your being here. You are welcome to stay if you want to.

Congressman RANGEL. Well, I will stay. I appreciate the courtesies that you extended to me over the years, and I look forward

to working with you now and in the future.

The CHAIRMAN. We will.

Now what we will do is, in the order that you were introduced

and just now spoke about your families, you may present any opening statement you have. If you have a longer statement, it will be

included in the record.

So we will start with you, Mr. Ryan.

STATEMENT OF ANTHONY RYAN, NOMINATED TO BE ASSISTANT SECRETARY FOR FINANCIAL MARKETS, U.S. DEPARTMENT OF THE TREASURY, WASHINGTON, DC

Mr. RYAN. Thank you very much, Chairman Grassley. I would

like to thank you, Ranking Member Baucus, and members of the

Finance Committee for inviting me to appear before you today.

I am honored that President Bush has nominated me to serve as

the Assistant Secretary of the Treasury for Financial Markets, and

I am especially grateful for Secretary Paulson’s trust and confidence.

I am also indebted to my family, for my parents, who instilled

in me strong values, to my wife Ann, and to our four children, who

have all supported my decision to serve.

If confirmed, I look forward to working with Secretary Paulson,

Under Secretary Steele, and the rest of the Treasury team, along

with others in the administration and Congress, on a myriad of

issues impacting our financial markets.

Our financial markets play a seminal role in helping our economy achieve sustainable growth. We possess the largest, most liquid, and most efficient financial markets in the world. We must

build on this foundation and continue to ensure our financial markets not only remain strong, but gain in strength. If confirmed, I

would very much look forward to contributing to that effort.

U.S. Treasury obligations are respected around the world, as

they reflect the safety and soundness of our markets as well as the

quality of our economy. As stewards, I believe we have an obligation to our citizens to manage the government’s fiscal matters most

effectively.

The collective results impact every American, directly and indirectly. If confirmed, I would work to fulfill that obligation by implementing sound policy, addressing the strategic issues, and responsively managing the specific functions within the office.

Over the past 20 years, I have had the opportunity to directly

participate in the financial markets, either investing or advising

many institutional pension clients, endowments, and mutual fund

boards.

Having managed multi-asset class portfolios, traded in capital

markets around the world, and worked with many global investors,

I have developed a broad perspective and appreciation for the U.S.

financial markets, the institutions which regulate them, and the

aggregate role they play in facilitating our economic growth and

savings.

5

Successfully managing our financial matters requires a collaborative effort. For that to occur, we must recognize the critical importance of communication. If confirmed, I will seek to ensure constructive dialogue with members of this committee and your staffs,

as well as others, including those in the global marketplace.

The Treasury Department, under the leadership of Secretary

Paulson, is very committed to fulfilling its mission and, if confirmed, I would welcome the opportunity to contribute to the Treasury Department’s longstanding tradition of excellence.

I appreciate very much the time the members of this committee

have taken to consider my nomination, and I would be happy to answer any questions.

[The prepared statement of Mr. Ryan appears in the appendix.]

The CHAIRMAN. Before we go to Dr. Swagel, just in case Senator

Rockefeller has to run someplace.

Senator ROCKEFELLER. No.

The CHAIRMAN. Well, I know you wanted to introduce somebody.

Senator ROCKEFELLER. Yes, I do.

The CHAIRMAN. Then do that now, I think would be best. You

can stay forever. That is just kind of the way we do things around

here. We introduce them at the beginning rather than at the end.

Senator ROCKEFELLER. And I was tardy, and I apologize, Mr.

Chairman.

The CHAIRMAN. No, that is all right.

Senator ROCKEFELLER. I will resign from the Senate, if that

smooths the situation. [Laughter.]

The CHAIRMAN. That would only be beneficial if you had a Republican Governor. [Laughter.]

Senator ROCKEFELLER. Some things never change. Those warm

and embracing words from the deepest part of the Midwest are so

embracing. [Laughter.]

OPENING STATEMENT OF HON. JOHN D. ROCKEFELLER IV,

A U.S. SENATOR FROM WEST VIRGINIA

Senator ROCKEFELLER. I did want to introduce, and do want to

introduce, Dean Pinkert. The reason is, he has worked with Senator Byrd for a long time, and Senator Byrd wants me to say how

incredibly proud he is of you, Dean, and wishes you well. He specifically said, ‘‘both in this hearing and generally in life.’’

You are deeply international trade oriented. Born and raised in

Chicago; Oberlin, which means you are smart; University of Texas;

London School of Economics—weren’t we there at the same time?

Congressman RANGEL. Probably.

Senator ROCKEFELLER. Yes.

The CHAIRMAN. Visiting, of course.

Senator ROCKEFELLER. Yes. [Laughter.] Worked in private practice in this whole field of international trade, and also was the

Chief Counsel for Import Administration within the Commerce Department. Dean is a smart, very independent thinker. He is a hard

worker.

You spend 20 years implementing trade laws, trying your best to

do that. You know when they should be applied. So there are some

of us here who care very deeply about the laws being applied fairly.

6

There is a case before the ITC on corrosive steel right now. I am

for you, and so is Senator Byrd. That is the end of my introduction.

The CHAIRMAN. Thank you.

Now, Dr. Swagel?

STATEMENT OF DR. PHILLIP SWAGEL, NOMINATED TO BE ASSISTANT SECRETARY FOR ECONOMIC POLICY, U.S. DEPARTMENT OF THE TREASURY, WASHINGTON, DC

Dr. SWAGEL. Thank you, Chairman Grassley, Ranking Member

Baucus, and members of the committee. Thank you for the opportunity to appear before you today. I am honored to be President

Bush’s nominee to be Assistant Secretary of the Treasury for Economic Policy, and I thank the President and Secretary Paulson for

their confidence in me.

I am especially grateful to my family, for both their encouragement and their forbearance in permitting me to return to government service.

I would also like to thank my mother, Deanna Epstein, for a lifetime of support, and my stepfather, David Epstein, who is not here

today, for his continued encouragement, and also for his courage 25

years ago in marrying into a family with three teenaged boys. I can

only hope and believe that my late father, Michael Swagel, would

have been pleased and proud at this day.

In my professional career, I have had the good fortune to work

with talented colleagues and to learn from supportive mentors at

the Federal Reserve, the International Monetary Fund, and the

Council of Economic Advisors.

If confirmed, I will be fortunate to work with the dedicated

Treasury professionals, led by Secretary Paulson, and will contribute my professional experience to the administration’s efforts to

tackle the economic challenges facing this country.

Much of my economic research has focused on the impact of

international influences and technological and demographic change

on the U.S. economy. I am mindful of the effects that these changes

can bring about and the economic challenges facing Americans.

If confirmed as Assistant Secretary for Economic Policy, I will be

especially aware of the importance of ensuring that the prosperity

of our Nation benefits all Americans.

Thank you again, Mr. Chairman, for the privilege of appearing

before this committee. If confirmed, I can assure you I will work

closely and enthusiastically with the members of this distinguished

committee.

I would be pleased to respond to your questions.

The CHAIRMAN. Thank you.

[The prepared statement of Dr. Swagel appears in the appendix.]

The CHAIRMAN. Now, Mr. Pinkert?

STATEMENT OF DEAN PINKERT, NOMINATED TO BE A MEMBER OF THE U.S. INTERNATIONAL TRADE COMMISSION,

WASHINGTON, DC

Mr. PINKERT. I would like to thank Senator Rockefeller for the

kind introduction, and I would like to thank you, Mr. Chairman,

Senator Baucus, and members of the committee, for this opporVerDate 11-MAY-2000 15:07 Oct 09, 2007 Jkt 095484 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 37781.000 SFIN1 PsN: SFIN1
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tunity to appear before you regarding my nomination for the position of Commissioner, U.S. International Trade Commission.

I am deeply honored that the President has nominated me to

serve on this independent commission, whose decisions have a significant impact on the livelihoods of workers and companies all

across America.

I would like to thank my family for the support it has always

given me, and I also wish to thank Senator Byrd and his talented

staff. Working for this legend of the U.S. Senate was truly a privilege, and I am grateful for the confidence he has shown in me over

the years.

I note that I had the honor of assisting Senator Byrd on constitutional issues. Senator Byrd has always emphasized, and I will

never forget, that article 1, section 8 of the Constitution gives Congress the authority to regulate commerce with foreign nations. Congress makes the trade laws, and it is the job of the International

Trade Commission to implement those laws fairly and in accordance with Congressional intent.

Over the course of my career, I have advised several international trade decision makers on applying very complex laws to

what are often hotly disputed facts. I now look forward to the opportunity to participate in the administrative process as a decision

maker.

If confirmed, I can assure you that I will approach my new responsibilities as I have always approached my responsibilities: in

a fair and impartial manner, with professionalism and courtesy.

When she reaches adulthood, my young daughter sitting right

behind me will confront a world that is still more complex and

more interdependent than that which we have come to know.

The International Trade Commission stands at the intersection

between the U.S. economy and the international economy, administering statutes and helping Congress and the executive branch to

make policy decisions that will shape the world of our children and

ensure that they enjoy abundant economic opportunity.

I humbly thank you for considering my nomination to this important body.

The CHAIRMAN. Thank you very much.

[The prepared statement of Mr. Pinkert appears in the appendix.]

The CHAIRMAN. Now, Mr. Williamson?

STATEMENT OF IRVING WILLIAMSON, NOMINATED TO BE A

MEMBER OF THE U.S. INTERNATIONAL TRADE COMMISSION,

WASHINGTON, DC

Mr. WILLIAMSON. Thank you, Mr. Chairman, Senator Rockefeller.

I also want to thank Senator Baucus and the other members of the

committee.

I particularly want to thank Congressman Rangel for introducing

me, and I want to thank Senators Schumer and Clinton, Senate

Democratic Leader Reid, and House Speaker Pelosi for supporting

my nomination.

I also want to express my appreciation to Congressman Rangel

for proposing my appointment as a Commissioner and for the support he has given me throughout my career. I am proud to be able

8

to say that, as a Harlem resident, he has been my Congressman

for the last 21 years.

I also want to thank my family for the support that they have

given me throughout my career.

I have been working on trade policy matters for over 30 years.

I have worked in a wide variety of positions at the Federal and regional government level, and as head of my own international consulting firm. I hope that this long and extensive experience will

make me an effective Commissioner, if I am confirmed.

As Deputy General Counsel at USTR, I served as Chairman of

the Interagency Section 301 Committee and led it through 24 investigations of foreign trade barriers. I also helped manage the 14-

attorney office that was engaged in over 30 WTO dispute settlement proceedings, and was named ‘‘Best Government International

Law Office.’’

Before USTR, I worked for the Port Authority of New York and

New Jersey, where I advised it on international trade issues and

assisted local firms in the New York and New Jersey region to deal

with foreign trade barriers.

While a Foreign Service Officer at the State Department, I

served as an Associate General Counsel at USTR, and also served

in the U.S. Mission in Geneva, Switzerland, among other assignments.

Throughout my career, I have worked closely with the staff of the

Commission, and I have come to appreciate the important advisory

role the Commission plays in the trade policy formulation process.

The Commission helps ensure that the administration and the

Congress have the information and analysis needed to make trade

policy decisions that are in the best interests of the U.S. economy

and employment in the U.S. The Commission also has a very important role to play as an independent fact-finding body which administers provisions in our trade remedies laws and our laws dealing with foreign unfair trade practices.

If confirmed, I will administer these laws as written and as the

Congress intended. I will seek to apply our trade laws objectively,

fairly, and vigorously. I will not substitute any policy bias in place

of Congressional intent.

In my consulting assignments, I have seen how decisions regarding international trade are hampered when countries do not have

an institution such as the ITC. I therefore recognize that one of the

responsibilities of a Commissioner is to ensure that the Commission, as an institution, continues to carry out effectively for our

country the important functions assigned to it.

Thank you.

The CHAIRMAN. Thank you, Mr. Williamson.

[The prepared statement of Mr. Williamson appears in the appendix.]

The CHAIRMAN. Now, Ms. Bilyeu?

STATEMENT OF DANA BILYEU, NOMINATED TO BE A MEMBER

OF THE SOCIAL SECURITY ADVISORY BOARD, SOCIAL SECURITY ADMINISTRATION, BALTIMORE, MD

Ms. BILYEU. Mr. Chairman, Senator Rockefeller, and the rest of

the members of the committee, I am truly honored to be here beVerDate 11-MAY-2000 15:07 Oct 09, 2007 Jkt 095484 PO 00000 Frm 00012 Fmt 6633 Sfmt 6633 37781.000 SFIN1 PsN: SFIN1
9

fore you today as a nominee of the President to the Social Security

Advisory Board.

If I am confirmed, I look forward to working with the staff and

the other members of the Advisory Board on important issues facing Social Security today, and into the future.

The Advisory Board performs a valuable service by providing bipartisan recommendations to the President, Congress, and the

Commissioner to strengthen the Social Security programs. It is my

intention to work diligently to support the mission as a member of

the board.

The Social Security system impacts most people in our country

every single day. They go to work, pay their taxes, provide for

themselves and their family, and, finally, expect to retire, at least

in part, based upon the benefits provided by the Social Security

system. Over 160 million workers pay into Social Security, and

over 48 million receive benefits today.

Not only is Social Security central to the retirement security of

the vast majority of Americans, it is of vital personal importance

to me as the daughter of two benefit recipients and the mother of

a future benefit recipient.

My parents’ generation, my generation, my son’s generation, and

all those that follow will look to Social Security for some portion

of their retirement income, and with that retirement income, dignity and independence in their final years.

The work of the Advisory Board provides tremendous research

and bipartisan advice to the policymakers charged with oversight

of this program that is one of the mainstays of preserving the quality of life for our citizens. If confirmed, it would be my privilege to

participate in this effort.

Thank you for the opportunity to appear today. I am looking forward to answering your questions.

The CHAIRMAN. Thank you.

[The prepared statement of Ms. Bilyeu appears in the appendix.]

The CHAIRMAN. Dr. Warshawsky?

STATEMENT OF HON. MARK WARSHAWSKY, NOMINATED TO

BE A MEMBER OF THE SOCIAL SECURITY ADVISORY BOARD,

SOCIAL SECURITY ADMINISTRATION, BALTIMORE, MD

Dr. WARSHAWSKY. Thank you, Mr. Chairman. Chairman Grassley, members of the committee, thank you for the opportunity to

appear here today. I am honored to be nominated by President

Bush to be a member of the Social Security Advisory Board. I am

most grateful to my family for their continual support and encouragement.

I am pleased to appear before this committee again for a confirmation hearing. I was last here in March of 2004 for my nomination to be Assistant Secretary for Economic Policy at the Treasury

Department, which was a great honor and a wonderful position.

I believe I am well qualified by education and experience to serve

on this board. My career in the Federal Government and in the private sector has focused on economic research about, and policy toward, insurance and retirement saving and benefits and lifelong financial security.

10

Social Security clearly is a major component of these issues. Indeed, the early U.S. history of the benefits consulting firm at which

I now work, Watson Wyatt, is closely tied to the early history of

Social Security. The actuaries who founded the Wyatt company in

the 1940s were among the first designers and administrators of

this important government program.

I believe it is essential for all Americans that we have a permanently solvent and intergenerationally fair Social Security system,

one that is responsive, equitable, efficient, and well-managed, as

well as one that encourages higher national savings and longer

working lives as the baby boom generation approaches retirement

years.

The Advisory Board can play a helpful role in achieving these

goals by gathering information from a variety of sources and performing and sponsoring analyses of Social Security’s role and performance, and sharing those results widely.

I understand that the board works through consensus, and I believe that this is the appropriate approach for it to be most effective.

I would look forward to my participation with my board colleagues in the board’s activities, and to working with the Commissioner and the members of this distinguished committee and others

in the policy community, should I be confirmed.

Thank you again, Mr. Chairman and members of the committee,

for the privilege of appearing before you. I would be pleased to answer your questions.

[The prepared statement of Dr. Warshawsky appears in the appendix.]

The CHAIRMAN. There are three questions that we ask every

nominee.

First, is there anything that you are aware of in your background

that might present a conflict of interest with the duties of office to

which you have been nominated? Mr. Ryan?

Mr. RYAN. No, Mr. Chairman.

The CHAIRMAN. Dr. Swagel?

Dr. SWAGEL. No.

The CHAIRMAN. Mr. Pinkert?

Mr. PINKERT. No.

The CHAIRMAN. Mr. Williamson?

Mr. WILLIAMSON. No.

The CHAIRMAN. Ms. Bilyeu?

Ms. BILYEU. No.

The CHAIRMAN. And Dr. Warshawsky?

Dr. WARSHAWSKY. No, Mr. Chairman.

The CHAIRMAN. Second, do you know of any reason, personal or

otherwise, that would in any way prevent you from fully and honorably discharging the responsibilities of the office to which you

have been nominated? Mr. Ryan?

Mr. RYAN. No, Mr. Chairman.

The CHAIRMAN. Dr. Swagel?

Dr. SWAGEL. No, Mr. Chairman.

The CHAIRMAN. Mr. Pinkert?

Mr. PINKERT. No, Mr. Chairman.

The CHAIRMAN. Mr. Williamson?

11

Mr. WILLIAMSON. No, Mr. Chairman.

The CHAIRMAN. Ms. Bilyeu?

Ms. BILYEU. No, Mr. Chairman.

The CHAIRMAN. And Dr. Warshawsky?

Dr. WARSHAWSKY. No.

The CHAIRMAN. Last, do you agree, without reservation, to respond to any reasonable summons to appear and testify before any

duly constituted committee of Congress, if confirmed? Mr. Ryan?

Mr. RYAN. Yes, Mr. Chairman.

The CHAIRMAN. Dr. Swagel?

Dr. SWAGEL. Yes.

The CHAIRMAN. Mr. Pinkert?

Mr. PINKERT. Yes, Mr. Chairman.

Mr. WILLIAMSON. Yes.

Ms. BILYEU. Yes.

Dr. WARSHAWSKY. Yes.

The CHAIRMAN. All right. Thank you.

Let me put an addendum to the last one. It is not a question;

it is an admonition. The question only refers to appearing and testifying. Most of our communications with the executive branch are

by letter when we want information.

I always admonish people. And I suppose I am admonishing

these two, not accusing them of anything but knowing what past

practices are of various bureaucracies, and not just Treasury, and

not so much the rest of you.

But you send these letters and sometimes you never get an answer, so you write back and you eventually get an answer, but not

a complete answer. Then you write back. Eventually, maybe after

three or four times, if you are lucky, you get all your questions answered.

As far as I am concerned, you give the answer that you are willing to appear, and that means answering our letters. Now, I will

just give you an example. An hour ago, I was asking questions of

a panel down in Judiciary. We run into this in investigations like

I have been doing through Judiciary and through this Finance

Committee about an SEC whistle-blower.

We are getting good cooperation from the Securities and Exchange Commission, but the poor whistle-blower comes to us because he does not get justice within the agency.

We have a situation where the Inspector General did not do the

job of protecting him in the first place, or at least investigating in

the first place, and then when the whistle-blower comes to us, they

re-open the investigation.

Then the Inspector General has the guts to subpoena us for the

information we got from the whistle-blower. Now, that is going to

chill whistle-blowing. That is what it is intended to do. They have

the Justice Department enforcing the subpoena. If that is enforced,

we might as well shut down Congressional oversight.

That is the sort of lack of cooperation that we should not have

from the executive branch of government if they have the respect

for the constitutional checks and balances.

Now, I was only telling you about answering a letter. But you

see, when we do not get the information in the first place, that is

12

where all this stuff leads to. So I admonish you, when we ask questions—I mean, the public’s business ought to be public.

That is what checks and balances are all about, except in the instance of intelligence, national security, privacy, and maybe executive privilege, which is very narrow. It does not include the Secretary of Treasury. It includes a few advisors to the President right

there in the White House. So, I would ask for that sort of cooperation.

Dr. Swagel, I understand that you made the committee aware of

a personal concern, and I would like to give you an opportunity to

describe that, and how it was addressed.

Dr. SWAGEL. Thank you, Mr. Chairman.

That is right. As part of the nomination process I made the committee staff aware of a situation. Five years ago, my wife and I

hired a child care provider. At that time, we verified her employment status. In the 5 years since, we paid all of the taxes and fulfilled our legal obligations.

As part of the process of the nomination, the background investigation, I became aware that, 5 years later, our child care provider’s legal status had changed and she had lost her work permit.

This was the first I was aware of it.

As soon as I found out, with her permission, I talked to her attorney and verified this, and that same day, told her that we could

no longer employ her and my wife and I had to let her go as our

child care provider.

The CHAIRMAN. All right. And I assume that that satisfies the

committee. All right.

This question will be for all nominees. I would ask you to give

a short answer. You are welcome to give a longer answer, but I

would ask for a longer answer in writing.

Would you please tell me, or the committee, what you consider

your role to be, if confirmed, and what your goals would be in your

new positions?

Mr. Ryan?

Mr. RYAN. Mr. Chairman, my role would be Assistant Secretary

for Financial Markets at the Department of the Treasury. In that

capacity, I would be an advisor to Under Secretary Steele on a variety of financial matters.

My primary role and responsibility will be focused on managing

the debt issuance and the financing of our operations, as well as

other policies conducive to fulfilling the Treasury Department’s

mission.

The CHAIRMAN. And getting the lowest rate of interest you can,

right?

Mr. RYAN. Sorry, sir?

The CHAIRMAN. And getting the lowest rate of interest you can

for the taxpayers?

Mr. RYAN. That is the plan. Yes, sir.

The CHAIRMAN. All right.

Dr. Swagel?

Dr. SWAGEL. Thank you, Mr. Chairman. If confirmed as Assistant Secretary for Economic Policy, I would provide economic analysis and advice to Secretary Paulson on a wide variety of economic

13

issues, micro-economic and macro-economic, and would seek to support him in taking on the economic challenges facing the Nation.

The CHAIRMAN. Yes.

Now, the next two people have the most independence, probably,

of any of you at the table. So with that independence, what would

you hope to accomplish that maybe you could not do if you were

in a position where you were ministerial in function?

Mr. PINKERT. Well, first of all, Mr. Chairman, our duty is to administer the trade laws fairly and impartially, those aspects of the

trade laws that we are entrusted with.

Second, we must issue thorough and well-reasoned reports to

Congress and to the executive branch concerning trade issues and

potential trade agreements.

Then, third, we are responsible for maintaining the harmonized

tariff system.

The CHAIRMAN. Yes. Is there anything there that you know now

that you would like to make an impact on that maybe would be a

different direction for the Commission?

Mr. PINKERT. I do not have a direction in mind, except to administer the laws fairly.

The CHAIRMAN. All right.

Mr. Williamson?

Mr. WILLIAMSON. A similar answer. Yes. Our first duty is, of

course, to administer the trade remedies laws and our laws dealing

with unfair trade practices, and to do a very thorough and good job

of that.

Second, of course, is the advisory role that we play for the Congress and the administration, and to do a thorough job in conducting research and giving both institutions options.

The CHAIRMAN. Yes. I did not mean to imply that, by independence, you did not have to enforce the law. I meant by independence,

you have a long tenure—I think 9 years, as I recall—and so that

does give you a lot of independence from the standpoint of making

sure the laws are faithfully executed without political pressure and

the things that sometimes happen when you are within the executive branch.

And your advice?

Ms. BILYEU. Mr. Chairman, as a member of the Advisory Board,

we look forward to working to review various issues that are facing

the Social Security Administration, as well as the Social Security

system, by advising both the President and Congress with respect

to that.

I have had the opportunity to review many of the studies that

the Advisory Board has conducted thus far, and look forward to

being able to participate in that process in setting that agenda

going forward.

Dr. WARSHAWSKY. Mr. Chairman, as an independent Advisory

Board, the Social Security Advisory Board, to some extent, sets its

own agenda. That being said, it is obviously influenced by the

needs of the Social Security system and the Social Security program, and I would look forward to working with my colleagues, if

I should be confirmed, in providing advice to you, to the administration, and also to inform the public of the issues facing the Social

Security system.

14

The CHAIRMAN. One of the questions I was going to ask Mr.

Williamson, he answered in the previous response. But I would like

to ask you, based on your experiences, how can the objectivity and

transparency of the ITC serve as a model for other countries? If

you have not given that any thought, I do not want you to answer

it. But if you have, I would appreciate an answer, or maybe one

in writing.

Mr. WILLIAMSON. Briefly, I can say that the quality of the research that the Commission does—the hearings, the investigations,

getting all points of view in the United States—I think is very important.

I have seen in many countries where major trade policy decisions

and negotiations are made without having good information, so I

think it is very important for the Commission to look at the full

range of how people in the U.S. are impacted by international trade

agreements, and to probably do a more thorough job than has been

done so that maybe we can give some additional policy options for

the administration and for the Congress to deal with some of the

challenges of globalization where we have not done as good a job

as we should.

The CHAIRMAN. Yes.

Mr. Pinkert, one of the questions I was going to ask you was already answered in your previous response. Is there anything about

your time in private practice, to inform the committee about your

relationship and interaction with the ITC, that we ought to know

about?

Mr. PINKERT. Well, in private practice, Mr. Chairman, I had an

opportunity to work on behalf of the U.S. cement industry, which

had concerns about Mexican cement. But I also had an opportunity

to work on behalf of exporters who had a need to learn about the

export control laws of the United States, including agricultural exporters.

So what I would say is, it gave me a broad experience on both

the import and export side that I added to the experience I already

had from working at the Commerce Department.

The CHAIRMAN. All right. I have no further questions. Just before

you go, I want to ask my staff a question. [Pause.]

To the members of the committee’s staff—hopefully those who

are not here are listening—if you have questions for these folks, we

would like to have the questions in for answer in writing by 5 p.m.

today, and then we would like to have you respond right away, because it is our intention tomorrow, off the floor, to hold a special

meeting to take care of these nominees.

So, particularly for members of the committee, it is pretty important. I try to enforce, if you have questions from them, that they

be thoroughly answered, otherwise we will not move forward with

your name.

Thank you all very much.

Senator ROCKEFELLER. Mr. Chairman?

The CHAIRMAN. Yes. Go ahead.

Senator ROCKEFELLER. Am I allowed to ask questions?

The CHAIRMAN. Oh, I am sorry. Yes, of course you are. Of course

you are. I will stay and listen. [Laughter.]

15

Senator ROCKEFELLER. And it is obviously for the two ITC nominees.

Almost nobody in America knows about the ITC. If you are both

confirmed, you will see more of me and will have to listen to me

more than you will ever want. Fair trade laws just happen to be

incredibly important to not just my State of West Virginia, but I

think to the country, our manufacturing base, all of that.

The trend, however, has been either ignoring trade laws or weakening trade laws. This is not a Republican or Democratic thing. In

fact, it started, I think, under Clinton with Rubin. You know, the

international economy speaks for itself, and that is the way of the

future, and narrow, special interests are trying to say, below cost

of production selling of steel to the United States was all right because that is sort of the way the world worked. So you have the

two philosophies.

One is, what is the law of the land, which is that there shall be

fair trade and, as you specifically said, it is your specific responsibility to make sure that, under the law, that that happens.

Then there is the kind of general lack of interest in trade. For

example, we talk about budget deficits, budget debts, but we sort

of never remember to add on the trade deficit. It goes up every

month, and that is something on ABC News for 30 seconds, and

that is that. I just think the ITC is immensely important, and for

all States, for all reasons, and for all times, as one might say.

Now, if the trend is going the other way, the ITC has to follow

the law. I am just interested in what your thoughts are about the

fact that this administration and the previous administration were

not sympathetic to enforcing trade laws because there was foreign

policy, there were diplomatic needs, there was balancing of powers,

whatever considerations that always took precedence.

There is a large group of us around here who are really sick of

that, and tired of that, and have not really been able to do anything about it, in spite of some very good rulings from the ITC. You

are the folks who know it best of all.

Can you explain that? Can you explain how, by enforcing trade

laws—that being what is required of you—that there could be a

change of direction, or do you think the battle is lost, that free

trade is all that matters, and laws come and go, WTO comes and

goes, it does not make any difference, appeal does not make any

difference, and the country is not paying much attention? It is very

discouraging to me. I do not want it to be discouraging to you, each

of you.

Mr. PINKERT. Thank you, Senator Rockefeller. I think that none

of us have lost our vigor and our interest in enforcing the laws of

the United States. I think that when the Commission does its job,

under the law, that helps to increase the confidence of the American people in the international trading system.

So, I think it is a very important role considered in the context

of the system as a whole, as well as the importance of enforcing

our laws.

Senator ROCKEFELLER. All right.

Mr. Williamson?

Mr. WILLIAMSON. Thank you, Senator Rockefeller. I do not think

I have a good answer, but I will point out one thing. When I was

16

working at USTR in the 1990s, I used to take the A train home

to Harlem every Friday night. I used to think about, what is the

impact of what I am doing at USTR on the people on the train with

me? I think that is still a problem.

How do we ensure that all Americans benefit from international

trade agreements? Enforcing the trade laws is a part of the package. We really cannot have the trade agreements if we do not have

the trade laws, and enforce those.

So I think it is a challenging task, but I will try to work hard

to give some fresh insights. I think that is part of the role of the

Commission, to kind of help the policymakers, both in the Congress

and in the administration, address this problem.

Senator ROCKEFELLER. But you will both tell this committee and

act, if confirmed, to uphold the trade laws of the United States?

Mr. PINKERT. Absolutely.

Mr. WILLIAMSON. Yes.

Senator ROCKEFELLER. Thank you.

Thank you, Mr. Chairman.

The CHAIRMAN. Yes. Thank you very much. We will proceed as

planned and hopefully get committee approval tomorrow.

Thank you all very much. Thank you.

[Whereupon, at 1 p.m., the hearing was concluded.]

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