Senator lifts block on Treasury debt nominee

Mon Jul 19, 2004

WASHINGTON, July 19 (Reuters) - An Arkansas senator on Monday rescinded her pledge to block Timothy Bitsberger, the U.S. Treasury's nominee for assistant secretary for financial markets, following a meeting with Treasury officials.

"They confirmed for me that they have no way of knowing who or what organizations possesses our debt in the global market. I am concerned about our debt being held by unknowns as well as the magnitude of our debt in an uncertain environment," said Sen. Blanche Lincoln in a statement late Monday.

"However, there is no reason to hold up Mr. (Bitsberger's) nomination any longer for information he doesn't have," she said.

Bitsberger, who was designated by the White House on Friday as acting assistant secretary, and Randal Quarles, Treasury's assistant secretary for international affairs, met with Lincoln Monday afternoon after the senator said Friday she intended to block Bitsberger's nomination until she had adequate answers to questions about trends in Treasury securities' ownership.

Lincoln noted that about half of Treasury's marketable debt held by private investors is owned by foreigners.

"When you stop to consider that about one-third of every dollar of income taxes is going to service debt, I don't think you can help but be alarmed to find out that half that money is going overseas," she said.

"We are delighted the senator has lifted the hold and urge the Senate to swiftly confirm our nominee," said Treasury spokesman Rob Nichols.

A vote on Bitsberger by the Senate Finance Committee is expected on Tuesday.

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