NEW YORK, Feb 10 (IFR) - The resignation of the Fed's de
facto head of banking supervision announced on Friday comes as
US President Donald Trump gears up efforts to scale back
But bankers and analysts said the April departure of Federal
Reserve governor Daniel Tarullo would not necessarily mean a
sweeping rollback of post-crisis regulations, many of them
driven by Tarullo himself.
"We believe it would be a mistake to read this as the start
of an unwind of Basel III or the current capital levels," said
Jaret Seiberg, a policy analyst at investment banking and
research firm Cowen and Company.
"Populist forces remain strong within Team Trump ... so
there is risk that the replacement could be tougher on the
biggest banks than Tarullo, rather than easier."
Tarullo, a member of the Fed Board since January 2009, "led
the Fed's work to craft a new framework for ensuring the safety
and soundness of our financial system following the financial
crisis," Federal Reserve Chair Janet Yellen said.
Last week Trump signed an executive order asking to examine
the 2010 Dodd-Frank Act with a view to easing regulation.
One target may be capital requirements that are in many
cases higher for US banks than their competitors elsewhere in
"The government's future approach to bank capital depends on
the president's pick for vice-chairman for supervision at the
Fed, Comptroller of the Currency and FDIC chairman," Seiberg
Tarullo was tapped to fill an unexpired term ending January
31, 2022. During his time at the Fed, he served as chairman of
its committee on supervision and regulation. He was also
chairman of the Financial Stability Board's standing committee
on supervisory and regulatory cooperation.
Before joining the Fed, Tarullo was law professor at
(Reporting by Philip Scipio; Editing by Marc Carnegie)