Trump Will Nominate Quarles as Fed’s Top Wall Street RegulatorBy and
White House announces choice for vice chairman of supervision
Long-awaited pick now awaits confirmation from the Senate
President Donald Trump plans to nominate Randal Quarles, who served as a senior Treasury official in the George W. Bush administration, to be the Federal Reserve’s chief banking regulator, the White House said in statement Monday.
Quarles, 59, would bring a background in both domestic and international finance to the role, leaving his job as a managing director at a Salt Lake City-based private equity firm to become the Fed’s first-ever vice chairman of supervision. The prospective nominee -- who also had years of experience as a bank lawyer -- has been waiting in the wings for months to get Trump’s formal nod and will still need to go through the Senate confirmation process.
The selection of Quarles would end a long, and sometimes arduous, search to fill a post with great sway over JPMorgan Chase & Co., Goldman Sachs Group Inc. and other large banks. The new vice chairman -- a job established by the Dodd-Frank Act but never filled -- would be expected to play a pivotal role in carrying out Trump’s pledge to ease some of the regulatory constraints that were put on banks after the 2008 financial crisis.
Trump is nominating Quarles for a 4-year term as vice chairman, though he’s also being named to a longer term as one of the board’s seven governors, which would expire in 2032.
In his current post at the Cynosure Group, Quarles helps invest money from wealthy families, including the Eccles family of Utah. Quarles is married to Hope Eccles. Another member of the family, Marriner Eccles, was Fed chairman from 1934 to 1948, and one of the buildings at the central bank’s Washington headquarters is named after him.
Quarles joined the Treasury in 2002 as an assistant secretary for international affairs. He was later elevated to undersecretary for domestic finance. At the end of 2006, Quarles left the department and went to Carlyle Group LP, where he specialized in investing in the financial services industry. Prior to his time in George W. Bush’s administration, Quarles was a partner at the Davis, Polk & Wardwell law firm. He graduated from Columbia University and has a degree from Yale Law School.
Trump officials have been interviewing candidates for the supervision job since late last year, before the president took office. The choice has been bogged down by a lack of agreement among the president’s advisers and industry lobbying, people familiar with the matter have said.