KENA BETANCUR/AFP/Getty Images(WASHINGTON) — Steven Mnuchin, President-elect Donald Trump’s pick for Treasury secretary, faced tough questioning at his confirmation hearing Thursday, as members of the Senate Finance Committee grilled him on his role in IndyMac, the failed bank that was seized by the U.S. government, and his stance on sanctions.

“In the press, it has been said that I ran a foreclosure machine,” Mnuchin said at the start of his hearing.

He insisted that he made efforts to keep people in their homes by providing 100,000 loan modifications.

“I felt great empathy for the thousands of Americans who lost their home because of a system that failed them,” he stated.

When asked about the nation’s tax code, Mnuchin, a former hedge fund manager, said he supported changing the laws so they’re “simpler and more effective.”

He said he wants to fix “the tax gap” and close “these tax issues that make no sense.”

“My number one priority is growth in the economy,” Mnuchin said. “Tax reform will be our first and most important part of that.”

He added: “There is excess regulation that is hurting growth.”

But Mnuchin found himself on the defensive about his company’s use of offshore bank accounts in the Cayman Islands to avoid taxes. He said these accounts were used only to benefit nonprofits and pension funds and were allowable by law.

“I did not use a Cayman Island entity to avoid paying taxes for myself,” he said. “We shouldn’t be encouraging people to set up Cayman Island funds.”

When Sen. Ben Cardin, D-Md., asked Mnuchin about his stance on sanctions, particularly the sanctions imposed on Russia, Mnuchin said he was “100 percent” committed to enforcing sanctions against Moscow.

“I will use [sanctions] to the maximum amount of the law,” he vowed.

When Sen. Claire McCaskill, D-Mo., brought up the topic of sanctions again, Mnuchin testified that he opposes lifting current sanctions on Russia. But he refused to answer if he would recommend additional sanctions on the country, saying that he needed access to classified reports before deciding.

On the topic of divesting, Mnuchin asserted that Trump was not in violation of the Constitution by refusing to put his business assets into a blind trust, as recommended by various ethics experts.

“I know the president-elect is absolutely following the law and is committed to following the law and has set out a series of — although not a blind trust — he has removed himself from his business, he put his sons in charge of his business,” he said. “I can assure you that in my job of Treasury secretary, whatever responsibilities I have to monitor these issues which are very important, I can assure you that I will do.”

Mnuchin indicated that he would support raising the debt ceiling if necessary to avoid a U.S. default.

“I firmly believe that the U.S. has to honor its debt,” Mnuchin told the committee, despite previous statements made by Trump that the U.S. could potentially renegotiate its debts or print more money.

Mnuchin promised he would “commit to work with Congress so we don’t get to the last minute and run out of money,” adding that the debt ceiling might need to be raised “sooner rather than later.”

Mnuchin dodged questions, however, about what specific level of debt he finds “unacceptable.” One senator claimed that Trump’s economic plan would increase the nation’s debt by an estimated $7.2 trillion over 10 years, a statement Mnuchin disputed based on “dynamic” scoring.

“Trump has a pro-economic growth tax plan and we are sensitive to the cost of that plan,” Mnuchin said.

Mnuchin also testified that he would help modernize the IRS.

“I will use my expertise in technology to bring the IRS up to date,” Mnuchin said. “In this world of cybersecurity, we need to protect the privacy of Americans.”

Mnuchin, 53, is a Goldman Sachs veteran and a Hollywood producer. In 2009, during the height of the financial crisis, he and a group of investors bought the remains of the failed IndyMac, renaming it OneWest Bank.

While campaigning for president, Trump appointed Mnuchin as his national finance chairman. After winning the election, Trump announced Mnuchin as his pick for treasury secretary in November.

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