Biden nominates former Treasury official Barr for Fed’s top regulatory job

© . FILE PHOTO: An eagle graces the facade of the US Federal Reserve building in Washington, July 31, 2013. REUTERS/Jonathan Ernst/ By Andrea Shalal WASHINGTON () -President Joe Biden said Friday he would kill former Treasury official Michael Barr. to nominate as the US Federal Reserve’s top regulatory official, replacing Sarah Bloom Raskin, who resigned in March after failing to win the support of moderate Democrats. Barr, currently a professor at the University of Michigan Law School, was a central figure at the Treasury under Democratic President Barack Obama when Congress passed the 2010 Dodd-Frank Financial Reform Act in the wake of the 2007 financial crisis- 09, and helped create the Consumer Financial Protection Agency (CFPB). “Michael brings the expertise and experience needed for this important position at a critical time for our economies and families across the country,” Biden said in a statement. The Fed vice chairman of supervision is responsible for overseeing the largest banks, determining appropriate capital ratios, and representing the United States in cross-border negotiations on international banking standards. As the Treasury Department deputy secretary for financial institutions, Barr helped shape Wall Street’s post-crisis overhaul, Biden said, adding that Barr had strong support across the political spectrum. The Democratic president noted that Barr was confirmed for the Treasury position in 2009 on a bipartisan basis. However, Patrick Toomey, the top Republican on the Senate Banking Committee, criticized Barr’s support of the Dodd-Frank bill, which Toomey said had anchored the taxpayer’s bank. rescue operations. He also said the CFPB was “inexplicable” and “unconstitutional”. “I am concerned about his appointment for these and other reasons, but I look forward to meeting and discussing these and other matters,” Toomey said in a statement on Friday. The president said he would work closely with the Senate Banking Committee to move Barr’s nomination forward quickly, and called on the Senate — which is split evenly with the Democrats holding the deciding vote — to swiftly approve its four other Fed-leaders. candidates, including Jerome Powell for a second term as chairman and Fed Governor Lael Brainard for vice chairman. Powell, Brainard and economists Philip Jefferson and Lisa Cook, both nominated to fill vacant Fed board seats, are expected to vote after the Senate returns from the Easter break. Senate Banking Committee chairman Sherrod Brown, a Democrat, said he would support Barr’s nomination and strongly urged his Republican colleagues to avoid personal attacks and support him. “At a time when working families are dealing with rising prices while corporate profits continue to rise, this job is vital to making sure the economy works for everyone,” Brown said. TO-DO LIST If confirmed, Barr, who would have a say in monetary policy issues, would arrive at the Fed as it faces its highest inflation in 40 years, with officials promising an aggressive series of rate hikes this year to keep prices in check hold . The central bank also plans to clear its $9 trillion balance sheet. Barr will also have a long regulatory to-do list, including pushing through climate risk testing for Wall Street banks, implementing new capital rules and drafting new rules for cryptocurrencies and community lending. Barr’s name had been suggested for another banking regulatory position, which headed the Office of the Comptroller of the Currency, but some progressives objected, citing his work at a number of fintech firms after he left the government. Democratic Senator Elizabeth Warren, a leading progressive, backed Barr for the Fed’s role on Friday, noting his hand in creating the CFPB. “This position should have been filled months ago without political delay,” she added. Biden said Barr had spent his career protecting consumers. He also served on the National Economic Council in the White House. Raskin withdrew from consideration for the top regulatory position at the Fed on March 15, a day after Democratic Senator Joe Manchin and moderate Republicans said they would not support her, leaving no way for confirmation by the full Senate.

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