President Joe Biden said Friday that he intends to nominate Michael S. Barr as the Federal Reserve’s Vice Chairman for Oversight.
Mr. Barr, a law professor at the University of Michigan, served as Assistant Secretary of the Treasury Department for Financial Institutions in the Obama administration and was a key architect of the Dodd-Frank Reform Act. Wall Street and consumer protection.
“Barr has spent his career protecting consumers and, while at the Treasury, was instrumental in the creation of both the Consumer Financial Protection Bureau and the position for which I appoint him,” Mr. Biden in a statement. “He was instrumental in getting Dodd-Frank through, to ensure that a future financial crisis would not create devastating economic hardship for working families.”
The Dodd-Frank Act created the Vice President of the Fed for the supervisory position in 2010 to oversee banking regulation. Randal K. Quarles, the first person to hold the position, resigned in December. Mr. Biden originally nominated Sarah Bloom Raskin, a former Fed board member and deputy secretary of the Treasury Department, in January, but Ms. Raskin withdrew her nomination in March after facing fierce Republican opposition and to a statement from Sen. Joe Manchin, DW. V., announcing that he would not support his candidacy.
Mr. Biden said he would work with Senate Banking Committee Chairman Sherrod Brown, D-Ohio, to quickly move forward with Mr. Barr’s nomination.
In a personal statement, Mr Brown said Mr Barr “understands the importance of this role at this critical time in our economic recovery”. He added, “I will support this key candidate, and I urge my fellow Republicans to abandon their old playbook of personal attacks and grandstanding and put Americans and their wallets first.”
Sen. Pat Toomey, R-Pa., a ranking member of the Banking Committee, said in a separate statement that Mr. Barr “defended Dodd-Frank’s big bank bailout mechanism, which enshrined the bailout into law. banks by the taxpayers. He was also the primary perpetrator of the unconstitutional and irresponsible CFPB. For these and other reasons, I have concerns about his nomination, but I look forward to meeting and discussing these issues and others.
At the University of Michigan, Mr. Barr is the Joan and Sanford Weill Dean of the Gerald R. Ford School of Public Policy, the Frank Murphy Collegiate Professor of Public Policy, the Roy F. and Jean Humphrey Proffitt Professor of Law at the ‘University. of Michigan Law School, and the founder and faculty director of the Center on Finance, Law & Policy at the University of Michigan.
Mr. Biden made four other appointments to the Federal Reserve Board of Governors: Chairman Jerome Powell, who has served on the Fed board since 2012 and was confirmed as chairman in 2018, was reappointed; Lael Brainard, a Fed board member since 2014, was named vice chair; and Lisa D. Cook, professor of economics and international relations at Michigan State University, and Philip N. Jefferson, vice president of academic affairs, dean of faculty and Paul B. Freeland professor of economics at Davidson College, were nominated for the Fed’s board of directors.
These nominations have been advanced out of committee and will likely be considered by the full Senate in the coming weeks.