Trump Pick for Fed Says Banking Policy Needs ‘Refinements’

By Jeff Bater

President Donald Trump’s pick to head bank supervision at the Federal Reserve said in prepared remarks for his confirmation hearing that “some refinements will undoubtedly be in order” for post-crisis bank regulatory policy.

Randal Quarles, tapped to be vice chairman for supervision at the Fed, is scheduled to appear July 27 before the Senate Banking Committee.

He said in his remarks that regulatory policies enacted since the crisis have improved the safety and soundness of the financial system.

”But as with any complex undertaking after the first wave of reform, and with the benefit of experience and reflection, some refinements will undoubtedly be in order,” Quarles said.

Furthermore, he said that former Governor Daniel Tarullo, an architect of some post-crisis changes, indicated in an April speech that there are adjustments that can be made without endangering financial stability.

”The key question will be ensuring that, as we continue to refine the system over time, we do so while maintaining the robust resilience of the system to shocks,” Quarles said.

Otting Also at Hearing

Also scheduled to appear at the hearing is Joseph Otting, nominated to serve as comptroller of the currency. In his remarks, Otting alluded to his experience in banking. He is a former lieutenant of Treasury Secretary Steven Mnuchin’s at OneWest Bank.

“I have touched virtually every segment of the industry including serving consumers, businesses, trust functions, private banking, investment services, legal, human resources, compliance, audit, treasury, financial management, operations and technology,” he said. “This experience provides a broad base of knowledge that will be helpful and insightful in the role as comptroller.”

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