Senate Bank Chair urges Biden to stop deregulation until it chooses a candidate

Chairman Sherrod Brown (D-OH) was Janet Yellen at a hearing of the Bank, Housing and Urban Affairs Commission on the CARES Act on September 28, 2021 at the Hart Senate Office Building in Washington, DC. Ask the Treasury Secretary and Federal Reserve Chairman Powell.

Kevin Deechu | Pool | Reuters

Senate Democrats in charge of banking want to chair the Federal Reserve Jerome Powell Monetary deregulation will be suspended until President Joe Biden nominates a new member to the central bank.

Sen. Sherrod BrownPowell, chairman of the Senate Banking Commission, called for the rollback of industry regulation to cease until the president has the opportunity to replace the Fed’s vice-chairman for oversight. Randall Qualls..

“When Vice-Chair Quares confirmed his position, bank lobbyists cheered. He immediately set out plans to shift to the benefit of the industry rather than the protection of families working the post-crisis rules. Not only that, he faithfully continued his deregulation efforts, even if the economy was. It was shaken by the global epidemic. ” Letter dated October 13th.

“A new direction for financial regulation needs to be chosen by the president and approved by Congress to decide on important leadership positions for the board,” said a Democrat in Ohio.

Quores’ term as Federal Reserve’s Supreme Bank Regulatory Authority ends Wednesday, opening another hot position at the Central Bank to fill the next few months. His position will not be met until Biden nominates and the Senate identifies a new candidate to oversee the country’s lenders.

“Given the expiration of the vice-chairman’s term, he will no longer chair the Commission on Supervision and Regulation,” a Federal Reserve Board spokesman told CNBC. “The committee meets irregularly as needed. Matters within the responsibility of the committee will only proceed to the entire board if there is broad agreement among the members of the committee.”

Another term of Quores as Governor of the Federal Reserve Board will continue for another 10 years.

Many Democrats see Quares as an opportunity to move away from the role of Vice-Chair. Better police merger application, capital requirements Other regulatory issues facing banks.

Sen. Elizabeth WarrenMassachusetts Democrat and fellow banking commissioner accused Quores in May of her and other Democrats considering his approach to dangerous and relaxed financial surveillance.

“Instead of protecting the system, the FRB spent as much time drilling holes in the safety net as possible.” She said at that time.. “The term of office as chairman ends in five months, and when you are gone, our financial system will be safer.”

Quarles was the first person to act as a supervisor created by the 2010 Dodd-Frank Act, which redesigned financial sector surveillance in the aftermath of the Great Recession. That position wasn’t filled until 2017, when former President Donald Trump nominated him as one of Powell’s members.

CNBC politics

Read more about CNBC’s political coverage:

Quarles vacancies occur months before the Fed’s Vice-Chair Richard Clarida’s term ends in January and Powell’s term ends in February. With the seven Fed boards already vacant, Biden has several opportunities to shuffle leadership at the country’s central bank.

The White House hasn’t commented on when the candidates will be announced, but Deputy Press Secretary Karine Jean-Pierre said last week that Biden was “confident in Powell at this point.”

Powell is also backed by lawmakers on both sides of the political aisle for the second term and may face a brief reconfirmation vote in the Senate. He enjoys bipartisan support thanks to the Fed’s swift efforts to secure the US economy during the Covid-19 crisis and give businesses immediate access to liquidity.

Mr. Trump nominated Powell as the Fed’s leader in 2017, a few years after former President Barack Obama first tapped him to become a director of the central bank. His sect is endorsed by virtually all Republicans.

It discourages some progressive Democrats from seeing Biden as more demanding on banks and pressured candidates to focus more on issues such as climate change and income inequality. did not.

Progressive Alexandria Ocasio Cortez, Rashida Tribe, Ayanna Pressley, Mondea Jones, Hess “Chui” Garcia They had a discussion in late August.

“To advance the overall government approach to eliminating climate risk while making the financial system safer, we need a chair to address these objectives,” the representative wrote. “We urge President Biden to rethink the Federal Reserve, which focuses on eliminating climate risk and promoting racial and economic justice.”

Wall Street has widespread expectations for White House Tap Rael Brainard of the Federal Reserve Board for promotion.. She is a strong candidate to fill Quores’s position if Biden decides to replace the Fed’s chief and is not asked to replace Powell.

Senate Bank Chair urges Biden to stop deregulation until it chooses a candidate

Source link Senate Bank Chair urges Biden to stop deregulation until it chooses a candidate

Back to top button