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Home>UPDATE: Big banks get industry friendly regulator at the Fed

UPDATE: Big banks get industry friendly regulator at the Fed

UPDATE: Big banks get industry friendly regulator at the Fed

10/06/2017

By Greg Robb, MarketWatch

Senate confirms Randal Quarles for Fed as first-ever vice chairman for supervision

The nation's big banks, under the microscope for nearly a decade in the wake of the 2008 financial crisis, got some relief Thursday when the Senate approved Randal Quarles, an investment fund manager and former Republican Treasury official, to be the nation's top official in charge of bank supervision.

Quarles, who is President Donald Trump's first pick for the Federal Reserve, is seen as more industry friendly than former Fed Gov. Dan Tarullo, who repeatedly clashed with lenders when he functioned as the top bank cop, without the title, during the Obama administration.

The Senate voted 65-35 to give Quarles a 14-year term on the Fed board. Then, minutes later, lawmakers approved Quarles by voice vote to a four-year term as vice chairman, a position created by the Dodd-Frank bank reform law.

Industry analysts expect Quarles to roll back some of Dodd-Frank's regulations, something he pledged to do during his confirmation hearing.

Quarles also said he would make the central bank's annual stress test for bank's more transparent, a move that the industry had demanded. Tarullo had been reluctant to share much information with banks, fearing that the stress tests would be gamed.

Before the Senate vote, Sen. Elizabeth Warren, a Democrat from Massachusetts, urged her colleagues not to support Quarles.

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