Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Who will get the Fed regulation job? Here are some of the contenders

EconomyNov 23, 2021 11:21AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo

By Pete Schroeder and Michelle Price

WASHINGTON (Reuters) - While President Joe Biden on Monday said he would renominate U.S. Federal Reserve chair Jerome Powell, he left Washington guessing as to who would become the Fed's new regulatory chief.

Last month, Republican appointee Randal Quarles https://www.reuters.com/world/us/feds-randal-quarles-resign-end-december-2021-11-08 stepped down from that powerful role overseeing the country's largest lenders, and is due to leave the central bank next month. Biden said that and other Fed picks would be announced https://www.reuters.com/markets/us/powell-brainard-nominated-feds-1-2-punch-whats-next-2021-11-23 in early December.

Analysts and Washington insiders had seen fellow Fed governor Lael Brainard https://www.reuters.com/markets/us/brainard-influential-fed-governor-expand-role-vice-chair-2021-11-22 as the leading candidate to replace Quarles because she opposed his agenda to revisit rules created following the 2007-2009 global financial crisis. However, she is stepping into the Fed Vice Chair role.

Progressives are pushing for a candidate who would take a tougher stance on Wall Street, although it is unclear if they will get their way. Here are the leading names in the mix, according to multiple analysts and Washington insiders.

NELLIE LIANG, TREASURY UNDER-SECRETARY

Currently Treasury under secretary for domestic finance and a former Fed official, Liang was instrumental in building the post-crisis regulatory framework. She spent decades at the Fed as a staffer, ultimately becoming its first director of the Division of Financial Stability following the financial crisis.

She left the central bank in 2017 to join the think tank Brookings Institution, where she criticized Republican efforts to trim capital and liquidity requirements for large banks, among other changes.

Liang had previously been nominated for a Fed board seat by former President Donald Trump, but she withdrew in 2019 after Republicans blocked her nomination over worries she would be too tough on Wall Street.

"We would expect her to tighten big bank oversight, but she also strikes us as pragmatic, which may not work for progressives," wrote Jaret Seiberg, an analyst at Cowen Washington Research Group.

A spokesperson for Liang declined to comment.

SARAH BLOOM RASKIN, FORMER OBAMA OFFICIAL

A former Fed governor and Treasury official, Raskin is supported by progressives but could also secure enough Senate votes, said Seiberg.

As a Fed governor from 2010 to 2014, Raskin slammed proprietary trading as of “low or no real economic value” and pushed for a strict interpretation of the “Volcker Rule,” a major post-crisis reform curbing such speculative investments.

Former President Barack Obama later tapped Raskin to serve as deputy Treasury secretary. She also spent time as the top financial regulator for Maryland before joining the Fed.

However, Raskin recently took on a new role at Duke Law, where she has taught since 2017. She will become faculty director of the law school's Global Financial Markets Center next year. Raskin declined to comment.

RAPHAEL BOSTIC, ATLANTA FED PRESIDENT

With his appointment as President of the Atlanta Fed in 2017, Bostic became the first Black person to hold a regional Fed president role. He has been outspoken on racial diversity and economic inequality issues, both of which are key policy priorities for the Biden administration.

An economist by training, Bostic previously held roles at the Fed in Washington, where he won praise for his work on community lending rules, and at the Department of Housing and Urban Development.

However, Bostic "represents a bit of an unknown regarding financial regulation," wrote Brian Gardner, chief Washington policy strategist at Stifel Financial (NYSE:SF) Corp.

In an interview on Bloomberg Television on Monday, Bostic said he had "no trips to Washington" on his calendar and that any decision on such an appointment was out of his hands.

A spokesperson for Bostic declined to comment.

MICHAEL HSU, MEHRSA BARADARAN

Currently Acting Comptroller of the Currency, Hsu previously led big bank supervision at the Fed. As acting Comptroller, he has pushed Democratic priorities, including climate change risk and has warned banks against "over-confidence" https://www.reuters.com/world/us/us-banking-regulator-cautions-firms-against-overconfidence-following-pandemic-2021-05-18 coming out of the pandemic.

While he would be a good fit for Fed supervision, Washington insiders said, the nominee to replace him as permanent Comptroller, Saule Omarova, may not secure enough Senate votes after some moderate Democrats expressed concerns https://www.reuters.com/business/facing-fierce-opposition-us-bank-regulator-pick-pledges-protect-small-lenders-2021-11-17 over her academic work. That means the White House may need Hsu to stick around.

Baradaran, an academic and expert on financial inclusion, is loved by progressives who pushed her for as Comptroller. But the White House passed her over due to concerns among the industry and moderate lawmakers, some of whom said she did not have sufficient experience in government.

A spokeswoman for Hsu declined to comment, and Baradaran did not immediately respond to a request for comment.

(This story refiles to add dropped word "the" in headline)

Who will get the Fed regulation job? Here are some of the contenders
 

Related Articles

China's Q4 and 2021 GDP grow faster than expected
China's Q4 and 2021 GDP grow faster than expected By Reuters - Jan 16, 2022

BEIJING (Reuters) -China's economy grew 4.0% in the fourth quarter from a year earlier, faster than expected but its weakest expansion in one-and-half years, National Bureau of...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
dave knight
dave knight Apr 17, 2021 9:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
do not store tons of dgb on a native segwit. still trying to send it. load time will take months.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email