WASHINGTON — Randal Quarles was sworn in as a member of the Federal Reserve’s Board of Governors Friday afternoon and as vice chairman for supervision, making him the first person to hold that position since it was created by the Dodd-Frank Act in 2010.
Quarles, a former private equity fund manager and a Treasury official under President George W. Bush, was confirmed by the Senate as a member of the Fed board by a vote of 65-32 last week and later confirmed as vice chair by voice vote. Neither Quarles nor any other member of the Fed board made statements accompanying the announcement.
Randal Quarles, governor of the U.S. Federal Reserve nominee for U.S. President Donald Trump, listens during a Senate Banking Committee nomination hearing in Washington, D.C., U.S., on Thursday, July 27, 2017. Trump's pick to be the Federal Reserves top Wall Street watchdog said it's time to reconsider the restrictions imposed on banks in recent years, even as he credited regulations with helping stabilize the financial system after the 2008 crisis. Photographer: Andrew Harrer/Bloomberg
Andrew Harrer/Bloomberg
The swearing-in marks a formal end to a prolonged era of speculation around who President Trump would nominate for the job, which had been filled on a de facto basis by former Gov. Daniel Tarullo, who chaired the Fed’s supervisory committee before he resigned in April.
Several potential nominees were floated, including former Bush Treasury official David Nason and former George H.W. Bush official and corporate attorney Thomas Vartanian. Quarles was formally nominated in July.
His nomination drew some criticism from Democrats, with Sen. Elizabeth Warren of Massachusetts saying on the Senate floor that Quarles had “gone through the revolving door so many times it is hard to keep up.”
But Quarles held his own in his confirmation hearing in July, saying his hope was that bank regulations can be made clearer without subjecting the public to excessive risks. Ultimately five Democrats on the Senate Banking Committee voted to confirm Quarles.
House Republicans, led by House Financial Services Committee Chairman French Hill, R-Ark., outlined their priorities for the Trump administration's banking agenda in a series of letters to key regulators.
The buy now/pay later company made a deal with Stride Bank to add banking-as-a-service heft as Affirm Card usage soars and Evolve grapples with defections.
The Trump administration is leapfrogging the normal process by taking its fight over a district court injunction blocking efforts to shut down the Consumer Financial Protection Bureau to a federal appeals court, according to the CFPB workers' union.
"I can't just go fishing in the ocean," said Grasshopper Bank CEO Michael Butler, referring to his bank's ability to gather deposits. "JPMorgan Chase is out there with a yacht, and I'm driving a small speedboat."
Holly O'Neill, who was No. 5 on American Banker's list of the Most Powerful Women in Banking last year, will oversee a new department combining BofA's retail and preferred units. Aron Levine, who previously led preferred banking, is leaving the company.
