The Fed's Biggest Wall Street Critic Just Resigned
- Author: Eleanor Harrison Feb 11, 2017,
Feb 11, 2017, 0:26
He helped push policies that required big banks to have more capital in case of an emergency and often clashed with Wall Street leaders about the best way to prevent a repeat of the mistakes that led to the 2008 financial crisis.
In a brief letter sent to President Donald Trump, Tarullo said that he meant to resign on or around April 5.
Once Tarullo leaves, three of the board's seven seats will be open. Currently, there are two vacancies on the Fed board because Congress declined to confirm two nominees of former President Barack Obama. His time on the Fed board was marked by one of the busiest periods in the central bank's history, with massive demands from the 2010 Dodd-Frank Act to overhaul the US financial system in an effort to prevent a repeat of the 2008 meltdown.
Tarullo has been the member of the Board Governors of the central bank since January 2009 and has been overseeing the regulation of the financial sector. Tarullo has effectively filled the role, created by Dodd-Frank, even though he wasn't confirmed by the Senate for it and didn't officially hold the title. Donald Trump's views on.
Trump had been expected to fill the vice chairman for supervision position, which would likely have complicated Tarullo's role.
Both Tarullo and Federal Reserve Chair Janet Yellen have said the Dodd-Frank financial regulations, introduced in the wake of the 2008 crisis should not be watered down, saying they had reduced the risks in the financial system.
In a brief letter to Trump, Tarullo, 64, gave no reason for his departure. Yellen has said she has no intention of leaving before her term as chairman ends. Prior to joining the central bank, he was a law professor at Georgetown University and served in the Clinton Administration and on the staff of the late Senator Edward M. Kennedy (D-MA).