Fed’s Quarles defends plan to ease nonbank oversight from ex-regulators’ critique

21 May 2019 9:57pm
Randal Quarles, the US Federal Reserve’s vice chairman for supervision, defended a proposal to add steps to deeming a nonbank systemically important against criticism from former top regulators.

Ex-Fed Chairs Ben Bernanke and Janet Yellen, as well as former Treasury Department chiefs Tim Geithner and Jacob Lew, have said the plan would extend any reviews of a nonbank’s potential threat to the economy to an “unworkable” six years. Quarles said it wouldn’t take that long for the Treasury-led US Financial Stability Oversight Council to evaluate an insurer, asset manager or hedge fund.

“The conclusion that the designation process would take six years was highly dependent on a number of contingent assumptions,” he told the Senate Banking Committee last week. “I don’t think that those assumptions are likely to obtain.”