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.”
Fed’s Quarles defends plan to ease nonbank oversight from ex-regulators’ critique
21 May 2019 9:57pm