Warren Calls on Financial Stability Board to Reconsider the Recent Appointment of Former Trump Deregulation Czar

Warren Calls on Financial Stability Board to Reconsider the Recent Appointment of Former Trump Deregulation Czar

"Given Mr. Quarles's previous track record, we are concerned that his appointment to the FSB signals that the board will be coordinating systematic deregulation in the coming years, putting the international financial system at risk."

Text of Letter (PDF)

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, wrote to Andrew Bailey, Chair of the Financial Stability Board, voicing her strong concerns with the recent appointment of Randal Quarles, President Trump's first Federal Reserve Vice Chair for Supervision, to review reforms following the 2008 financial crisis.

"Mr. Quarles spent his tenure as a top financial regulator in the United States weakening safeguards for megabanks at the expense of financial stability and the American public. Our country suffered the consequences of his deregulatory efforts just a few years after his tenure ended, as we experienced the second, third, and fourth largest bank failures in U.S. history in 2023 - banks that Mr. Quarles deregulated," wrote Ranking Member Warren.

The Ranking Member outlined her request to Chair Bailey: "Given that this appointment was made in the weeks prior to the beginning of your term as FSB Chair, I ask that you consider terminating the appointment and conduct your own search for a suitable replacement. Specifically, I ask that you identify a candidate with a strong track record of fighting for a more stable global financial system that meets the needs of households and small businesses in our respective economies."

In her letter, Ranking Member Warren detailed her concerns with Mr. Quarles' record, including his implementation of the Economic Growth, Regulatory Relief, and Consumer Protection Act("EGRRCPA") and related deregulatory actions that directly led to the collapse of Silicon Valley Bank, the rollback of the Volcker Rule that loosened restrictions on proprietary trading and bank investments in private funds, and changes to weaken the supervisory stress testing framework.

###

• Print
• Email
• Tweet