The Senate Banking Committee approved the nominations of Janet Yellen, Peter Diamond and Sarah Bloom Raskin to be members of the Federal Reserve Board.

But Sen. Richard Shelby, R-Ala., and several Republicans voted against San Francisco Federal Reserve Bank president Yellen and Massachusetts Institute of Technology professor Diamond.

"I believe accountability is important. President Yellen presided over a regional housing bubble and failed to restrain the excesses," Shelby said before the committee voted 17-6 to approve her nomination.

The ranking committee Republican also noted that Yellen, who would be vice chairman if confirmed by the full Senate, has a "Keynesian bias."

Shelby said professor Diamond is a "skilled economist" with expertise on tax policy and the Social Security system, but he lacks monetary policy experience. "I do not believe he is ready to a member of the Federal Reserve Board." Diamond was approved by a 16-7 vote.

The panel approved Raskin by a 21-2 vote. Shelby said her experience as Maryland's financial services regulator would be "useful to her" as a Fed governor.

The banking committee unanimously approved the nomination of Steve Linick to be the inspector general at the Federal Housing Finance Agency, which oversees Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Linick currently works at the Justice Department as deputy chief of the fraud section.

Chairman Christopher Dodd, D-Conn., said the full Senate would not vote on confirmation of the nominees until September. The committee's approvals came late Wednesday.

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