Fed's Quarles in line to lead global regulator
Federal Reserve Vice Chairman for Banking Supervision Randal Quarles is expected to succeed Bank of England Governor Mark Carney as chairman of the Financial Stability Board, a key global financial regulator, according to two people familiar with the matter.
Quarles, the U.S. central bank’s head of supervision, will take the helm of the Basel-based FSB for three years, while maintaining his responsibilities at the Fed, the people said. Klaas Knot, president of the Dutch central bank, will serve as Quarles’ deputy at the regulator. Knot will then assume the chair for the following three years.
A final decision on the leadership changes is anticipated next week, the people said, asking not to be named as the deliberations are private.
The move could add to friction between the Fed and the Trump administration, which as part of its “American first” agenda has questioned why U.S. banks should have to adhere to standards set by international organizations. There are already tensions with the Fed over President Trump’s repeated criticisms of the central bank’s rate-setting decisions.
The Financial Stability Board was created in 2009 to drive implementation of rules agreed on by the Group of 20 nations after the global financial crisis. Its most notable achievement is the adoption of standards intended to end the era of too-big-to-fail banks.
Spokesmen for the Fed and the Financial Stability Board declined to comment.
Quarles has been supportive of international groups like the FSB, telling U.S. lawmakers last week that such entities help “ensure that all countries, not just the United States, do their part to maintain and protect the global economy.”
Reuters reported Quarles’ likely appointment earlier Monday.