
Michael S. Barr has officially announced his resignation from his position as vice chair for supervision at the Federal Reserve Board, effective February 28 or until his successor is confirmed, according to a press release issued on Monday.
Barr, who has held the vice chair role since July 19, 2022, informed President Joe Biden of his decision through a resignation letter but will still maintain his status as a member of the Federal Reserve Board of Governors.
Regulatory Decisions Postponed
In its statement, the Federal Reserve indicated that it would postpone any major banking regulatory decisions, including those related to the Basel Endgame, until Barr’s replacement takes office.
Following the election, President-elect Donald Trump will get the chance to nominate a new vice chair from the current board members.
This decision comes after a Reuters report suggested that Barr had sought legal advice regarding his situation, anticipating potential dismissal efforts from President-elect Trump.
Advocacy and Achievements
Expressing his gratitude for the opportunity to serve, Barr highlighted the importance of collaborating with his colleagues to strengthen the resilience and stability of the U.S. financial system.
He underscored that the vice chair role was created in the aftermath of the Global Financial Crisis to enhance accountability, transparency, and responsibility in the oversight of financial institutions.
Barr also noted that any conflict regarding his position could detract from the Federal Reserve’s critical mission.
He believes he can better fulfill his duties and serve the public as a governor under the current circumstances.
During his time as vice chair for supervision, Barr has been a strong advocate for the Federal Reserve to gain regulatory authority over cryptocurrency issuers in the United States.
This position has faced pushback from Republican legislators.
Additionally, he has been instrumental in proposing a significant increase in capital requirements for large banks—specifically, a 9% rise—and has conducted a comprehensive review of the Basel III Endgame framework.
Professional Background
In his role overseeing the regulation of financial institutions, Barr brought considerable expertise to the table.
Before joining the Federal Reserve, he enjoyed a distinguished academic career at the University of Michigan, where he led the Gerald R. Ford School of Public Policy and taught courses in financial regulation and international finance.
Barr’s background includes various high-level roles within the U.S. Department of the Treasury and a prestigious clerkship with Justice David H. Souter at the U.S. Supreme Court.
His impressive educational credentials encompass degrees from Yale University, Oxford University, and Yale Law School.
Source: Housingwire