A Federal Reserve Farewell Meaning More Than Most: QuickTake Q&A
Fed's Daniel Tarullo on Bank Risks, Too-Big-to-Fail
The departure of Daniel Tarullo from the Federal Reserve is a momentous event for Wall Street, which says goodbye (or maybe good riddance) to one of its most enthusiastic regulators. But the exit of U.S. banking’s leading watchdog doesn’t mean that a new era of friendlier relations with government supervisors will start right away.
After more than eight years as a Fed governor, Tarullo is leaving long before his term was scheduled to expire in 2022. If he’d stayed, he would almost certainly have been sidelined. When President Donald Trump picks a vice chairman of banking supervision, that person would have replaced Tarullo in his primary role. And when Trump names the next Fed chair after Janet Yellen departs in early 2018, the agency’s new leader would be very likely to have dramatically different views than Tarullo.