(Jan. 14, 2022) There will soon be three vacancies on the governing board of the nation’s central bank, as the current vice chair resigned, effective today (Jan. 14). Citing only the fact that his term as Federal Reserve Board member expires at the end of the month, Vice Chair Richard Clarida tendered his resignation to the White House from the agency leadership. His resignation will leave three empty seats on the seven-member board. Also empty: the role filled by a sitting governor as vice chair for supervision (vacant since Randal Quarles resigned last month). Lael Brainard has been nominated to replace Clarida as board vice chair; a confirmation hearing was held for her Thursday. If confirmed, her term in that role would run to 2026, the same year her Fed board chair term ends … Meanwhile, in his own confirmation hearing for a reappointment (for a four-year term) as Fed chair, Jerome H. (“Jay”) Powell said that, if confirmed, the Fed “will remain vigilant about new and emerging threats” to financial stability. He also said the agency, while he has been chair, intensified its focus and supervisory efforts on evolving threats such as climate change and cyberattacks, and improved public access to instant payments.
(Nov. 12, 2021) There will soon be two open seats on the Federal Reserve Board – and maybe three as early as January – because of the announced resignation of the former vice chair for supervision on the board, in what could be some big changes ahead for the central bank’s leadership.
Randal K. Quarles – the first and so far only vice chair of the Federal Reserve Board for supervision – announced his retirement from the agency board Monday, effective in late December. In a letter to President Joe Biden (D), Quarles said after four years as a member of the central bank’s board, and end of his term last month as vice chair of supervision, it was time for him to leave.
“It has been a great privilege to work with my colleagues on the Board, throughout the Federal Reserve System, and among the global central banking and regulatory committee,” Quarles wrote.
Quarles’ resignation will leave two open seats on the Fed Board; no successor has yet been named to him as top supervisor for the agency and the White House has made no nominations to fill the soon-to-be two open board seats.
There could be a third opening on the board within two months: the term of Fed Vice Chair Richard Clarida expires in January (and, likewise, the White House has been mum on a replacement).
And, there remains the question of who will lead the central bank board for the lion’s share of 2022 and beyond: the term of Jerome H. (“Jay”) Powell as chair of the board expires in February. He may continue to serve on the board after that, since his term as a governor runs until January 2028.
Quarles’ four-year term as vice chair for supervision ended last month. He now serves as chairman of the international Financial Stability Board (FSB), which works to coordinate financial stability regulatory programs across the globe. However, the term for that office ends at year’s end.
A former banker, Wall Street lawyer and Treasury Department official, the 64-year-old Quarles was nominated to the position by President Donald Trump (R) in September, 2017; he joined the board in October. His current term was to run until 2032.
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(Oct. 15, 2021) California legislation was signed into law this week, the California and Nevada Credit Union Leagues reported. The new law for state credit unions: allows expulsion of members for abusive behavior; simplifies how an expelled member may appeal; allows non-member deposits from other credit unions (giving CA CUs parity with FCUs and low-income designated credit unions); makes changes to how audit committees are governed; and makes other technical changes … Two jobs have opened up at the Oregon Department of Consumer and Business Services (DCBS); see the NASCUS Career/Job Postings page for more details … Federal Reserve Board Vice Chair for Supervision Randal Quarles – whose term in that role ran out this week, but who continues to serve until a successor is confirmed – will no longer chair the Fed Board’s committee on supervision and regulation. Instead, the Fed said this week, the three-member committee will only advance agenda items before it when there is “broad consensus” among Federal Reserve officials. That essentially means that all three committee members will have to agree to any rule changes to be proposed to the full board.
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