The Next President Can Change Banking with One Pick
By John Heltman
WASHINGTON — The next president could significantly reshape the regulation of financial services with a single appointment: the Federal Reserve’s vice chairman for supervision.… Exactly how much power that job has is unclear and in part may depend on how much leeway the eventual vice chair is afforded by Fed Chairman Janet Yellen…. The job was created by the financial reform law in order to shepherd the additional regulatory and supervisory requirements outlined in the law. But the White House chose not to select a nominee, instead leaving the job for Gov. Daniel Tarullo — who heads the Federal Reserve Board’s supervisory committee — to fill on a de facto basis…. Whether there is an appointment at all also may depend on the outcome of the election. Presumptive Republican nominee Donald Trump has said he would replace Yellen as chairman, and it would stand to reason that he might end Tarullo’s tenure as de facto regulatory policy leader as well by appointing someone else as vice chairman for supervision. But Karen Shaw Petrou, managing partner at Federal Financial Analytics, said Clinton could allow Tarullo and Yellen to keep the current working arrangement. “If it’s Clinton, and Tarullo wants things the way they are, things will stay the way they are,” Petrou said.