Michael Barr, the U.S. Federal Reserve’s vice chair for supervision, will resign on February 28th. Barr's decision, attributed to potential disputes with the incoming Trump administration, raises concerns about the increasing politicization of banking regulation. His departure is seen as a potential sign of more volatile policy shifts under new presidential administrations.
Michael Barr, the U.S. Federal Reserve ’s vice chair for supervision, will step down from his position on Feb. 28 — or earlier, if a successor is confirmed — according to a Monday announcement from the Federal Reserve .In a statement included in the Federal Reserve ’s announcement, Barr suggested that he decided to voluntarily resign in order to avoid a potential dispute with the incoming Trump administration.
According to Jaret Seiberg, a financial policy analyst at TD Cowen, Barr’s decision to step down is a potentially worrisome sign of the continuing politicization of banking regulation. In an analyst note to clients on Monday, Seiberg wrote, “Agency chiefs used to stay when the White House changed parties. That is no longer the case, which means banks should expect bigger policy swings each time the White House changes control.
Though Barr had some crypto bona fides before his appointment, including serving as an advisor to Ripple, the issuer of the XRP token, his tenure has been a mixed bag for the crypto industry. Barr has In a Monday statement, Sen. Tim Scott blasted Barr’s “supervisory failures” during the bank failures of 2023 and the “disastrous Basel III Endgame proposal” issued the same year.
FEDERAL RESERVE BANKING REGULATION MICHAEL BARR RESIGNATION POLITICS
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