November 07, 2017

Quarles says Fed will work on tailoring regs appropriately

Randal Quarles, the Federal Reserve's recently seated vice chairman for supervision, said during remarks Tuesday that the Federal Reserve should take "a fresh look at everything," including at ways to better tailor regulations.

Quarles was speaking at The Clearing House Annual Conference in New York; his first public address since taking office less than a month ago.

Regarding tailoring regulations, Quarles, as quoted by The Wall Street Journal, said the Fed will be "proceeding right away on that front in proposing ways to make sure our engagement with each specific firm is appropriate to that specific firm."

He also said regulators need to watch trends in fintech and cybersecurity for risks they may pose to the financial system.

Quarles was sworn in as the Fed's vice chair Oct. 13. He will fill out the remainder of a 14-year Fed Board term that expires Jan. 31, 2018, followed by an additional 14-year term that expires Jan. 31, 2032; and to serve a four-year stint as the Fed's vice chairman for supervision.

Currently, the Fed only has four governors on its seven-seat board. New York Fed President William Dudley said this week that he will step down from his post in mid-2018, about six months before his term is set to end.

Last week, the president nominated current Federal Reserve Board Gov. Jerome Powell to serve as the next Federal Reserve Board chair. If confirmed by the Senate, Powell will serve a four-year term as chair of the Federal Reserve Board. Current Fed Chair Janet Yellen's term ends on Feb. 3.

The NAFCU Board of Directors met with Powell at Federal Reserve headquarters in Washington in 2014 and 2015 to present its annual Report on Credit Unions. The association's 2017 Report on Credit Unions published this week.