What Do Peter Diamond and Paul Pate Have in Common?

You might have heard of Peter Diamond, he recently won the Nobel Prize in Economics and earlier this week withdrew his nomination to the Federal Reserve Board. But maybe you have not heard of Paul Pate.

Mr. Pate, former Republican mayor of Cedar Rapids, Iowa was nominated by President Bush in 2003 to fill a seat on the board of the National Institute of Building Sciences. I remember it well, as I handled that nomination as staff for the Senate Banking Committee.

So what exactly do Mr. Diamond and Mr. Pate have in common? They were both nominated for positions they could not legally hold. I’ve written elsewhere about Mr. Diamond’s situation. Mr. Pate was barred from serving on the NIBS board due to an ownership interest he had in an asphalt company.

Bush’s Office of Presidential Personnel didn’t catch that problem because they, like Obama’s same Office, don’t appear to actually read the statutory qualifications for nominations. I will admit, I didn’t catch this problem either. It was brought to my attention by the staff of former senator Paul Sarbanes (D-MD). When I verified Sarbanes’s objection, we immediately told Mr. Pate and the Bush White House that then Committee Chair Richard Shelby would not move Mr. Pate’s nomination (despite Mr. Pate’s personal friendship with Sen. Grassley (R-IA)).

Both Mr. Diamond and Mr. Pate were, in part, the victim of circumstances beyond their control. They had done nothing wrong. Yet the law was the law. While I don’t equate NIBS with the Fed, that shouldn’t matter. We should respect the law regardless of the viewed relative importance of the position. In fact, I believe the more important the position, the greater need for respecting the law.

Unfortunately there is a lot Mr. Diamond and Mr. Pate do not have in common. Rather than accept his bad luck, Mr. Diamond offers in the New York Times the rant of a spoiled brat. Mr. Pate, in contrast, accepted his bad luck with integrity and grace.