The Federal Reserve’s point man on financial regulation submitted his resignation Friday, meaning the Fed’s Board of Governors will drop to just four members when he leaves in April and just as Congress looks to gut former President Barack Obama’s financial regulations.
Daniel Tarullo, who began working on the board in January 2009, submitted his resignation effective on or about April 5. Tarullo was the chairman of the board’s Committee on Supervision and Regulation, making him one of the top regulators and helped lead the board’s oversight of financial institutions. His term was set to end in 2022, as the president appoints Board of Governors members to 14-year terms.
“Dan led the Fed’s work to craft a new framework for ensuring the safety and soundness of our financial system following the financial crisis and made invaluable contributions across the entire range of the Fed’s responsibilities,” said Janet Yellen, chairwoman of the Federal Reserve. “My colleagues and I will truly miss his deep expertise, impeccable judgment, wise insight and strategic counsel.”
The 64-year-old Tarullo, appointed by President Obama, is the top government official most immersed in oversight of the financial sector. In the wake of the 2008 financial crisis, the Fed, tasked with carrying out the nation’s monetary policy, was given new regulatory powers and responsibilities by Congress in the 2010 Dodd-Frank law.
The Republican-led Congress is looking to dismantle Dodd-Frank. President Trump, the GOP and critics of the law say its restrictive policies have prevented businesses from acquiring loans and have created burdensome regulations that have hurt the economy. Democrats, however, say they are only willing to consider minor tweaks in the law.
House Financial Services Committee Chairman Jeb Hensarling, of Texas, has said that “a lot” of the law could be dismantled through executive action by Trump. Furthermore, “a lot” could be undone using reconciliation, a parliamentary maneuver that allows for passing legislation with only 51 votes in the Senate, rather than the 60 typically needed to overcome a filibuster.
Tarullo’s announcement comes two days after Federal Reserve general counsel Scott Alvarez, a key behind-the-scenes figure at the central bank who played a major role in its response to the financial crisis, said he will step down.
When Tarullo leaves, the board will only have four filled spots out of the seven total positions available.
Prior to joining the board, Tarullo was a law professor at Georgetown University and served in the White House under President Bill Clinton.
• Joseph Lawler contributed to this report.
