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Randy Quarles is arguably America's most important bank regulator. He is also still friendly with the industry -- he met with his old colleagues at Davis Polk, which represents the big banks, 22 times in his first 21 months. (1/) https://www.nytimes.com/2019/11/29/business/economy/bank-regulations-fed.html?rref=collection%2Fbyline%2Fjeanna-smialek&action=click&contentCollection=undefined®ion=stream&module=stream_unit&version=latest&contentPlacement=1&pgtype=collection
Quarles' unofficial predecessor, Daniel Tarullo, doesn't have any recorded meetings with the firm on his schedule.
But this could underline a way Quarles' job is unique -- he is tasked with fine-tuning blunt post-crisis regulation (or rolling it back, depending on who you ask.)
But this could underline a way Quarles' job is unique -- he is tasked with fine-tuning blunt post-crisis regulation (or rolling it back, depending on who you ask.)
Input from banks is key to that rewriting. The Fed has a full comment, but I thought this Quarles quote summed it up:
“I have a pretty open door...I think that’s part of the responsibility of a Fed governor. The Fed as an institution has to be open to receiving input.”
“I have a pretty open door...I think that’s part of the responsibility of a Fed governor. The Fed as an institution has to be open to receiving input.”
The question: are tweaks simply improving efficiency without adding to risk, or will rollbacks leave the system vulnerable at exactly the wrong time?
Lael Brainard's dissents suggest she's worried about the latter. Nellie Liang also had a great piece: https://www.brookings.edu/blog/up-front/2019/10/15/a-risky-mix-looser-financial-regulations-when-monetary-policy-is-easing/
Lael Brainard's dissents suggest she's worried about the latter. Nellie Liang also had a great piece: https://www.brookings.edu/blog/up-front/2019/10/15/a-risky-mix-looser-financial-regulations-when-monetary-policy-is-easing/
But Mr. Quarles, a relative via marriage to legendary Fed Chair Marriner Eccles, sees it differently. He sees Mr. Eccles as a role model.
