The key positions Trump must fill in financial services

April 10, 2017 5:49 PM

U.S. President Donald Trump speaks during a National Economic Council meeting at the Oval Office in Washington, D.C., U.S., on Friday, March 27, 2017. House Republicans abandoned their efforts to repeal and partially replace Obamacare after Trump and Speaker Paul Ryan concluded they didn't have enough support, marking an embarrassing setback for the GOP agenda. Photographer: Olivier Douliery/Pool via Bloomberg

Olivier Douliery/Bloomberg

President Trump has been in office for nearly 12 weeks, but he still hasn’t nominated several critical positions among financial services regulators. Moreover, the list of vacancies and those with expired terms just grew longer last week as Federal Reserve Board Gov. Daniel Tarullo stepped down and Comptroller of the Currency Thomas Curry’s term expired. Following is a guide to what’s vacant now, and when other posts will be available.

Daniel Tarullo, governor of the U.S. Federal Reserve, speaks during an event at Princeton University in Princeton, New Jersey, U.S., on Tuesday, April 4, 2017. It may be time to phase out one of Wall Street's most feared aspects of the Federal Reserve's stress tests, Tarullo said Tuesday on the eve of his last day on the board. Photographer: Ron Antonelli/Bloomberg

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Federal Reserve

Trump took office with two vacancies on the Federal Reserve Board, and after Tarullo's departure last week, now has three slots to fill on the seven-member board. One of those positions is the vice chairman of banking supervision, a new role created by the Dodd-Frank Act which has yet been unfilled. Another of the Fed nominees must have community banking experience, a key position for smaller institutions. It’s not clear why Trump has waited so long to name these positions. During a meeting with community bankers last month, the president told attendees there would be an announcement "soon."

Comptroller of the Currency Thomas Curry

Thomas Curry, comptroller of the U.S. currency, speaks during a Senate Banking Committee hearing in Washington, D.C., U.S., on Thursday, July 11, 2013. Dodd-Frank Act measures designed to prevent a repeat of the global credit crisis will be largely complete by the end of this year, financial regulators told lawmakers at a hearing today on the 2010 law. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Thomas Curry

Andrew Harrer/Bloomberg

Office of the Comptroller of the Currency

Comptroller Curry’s five-year term technically expired on Sunday, but he is expected to stay in the post until a successor is nominated and confirmed. It’s not clear when that is coming. The speculation remains that Joseph Otting, the former CEO of OneWest Bank who previously worked for now Treasury Secretary Steven Mnuchin, is the administration‘s choice, but that is not yet official.

Martin Gruenberg, acting chairman of the Federal Deposit Insurance Corp. (FDIC), speaks during a Senate Banking Committee nomination hearing in Washington, D.C., U.S., on Tuesday, July 26, 2011. President Barack Obama’s nominees to head agencies overseeing the biggest U.S. banks were quizzed o a myriad of regulations including resolving too-big-to-fail, increased capital requirements and preemption rules. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Martin Gruenberg

Andrew Harrer/Bloomberg

Federal Deposit Insurance Corp.

The Federal Deposit Insurance Corp. is still short a single board director, a position that has been open since Jeremiah Norton left in 2015. Chairman Martin Gruenberg and Vice Chair Thomas Hoenig, meanwhile, are nearing the end of their terms, which expires in November. The Trump administration will have to be careful who it picks for all three posts as well as the OCC (which sits on the FDIC board) since federal law prevents the 5-member board from having any more than three members of the same political party.

Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), listens during a Senate Banking Committee hearing in Washington, D.C., U.S., on Thursday, April 7, 2016. Testimony from Cordray today may shed light on the status of several regulations that could curtail revenue from payday loans, prepaid cards and other financial products. At a March 16 hearing, Cordray hinted that a rule to limit prepaid cards won't be finished until June. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Richard Cordray

Andrew Harrer/Bloomberg

Consumer Financial Protection Bureau

Consumer Financial Protection Bureau Director Richard Cordray’s term doesn’t expire until July 2018, but that hasn’t stopped speculation about who might replace him. Many in the banking industry expected President Trump to attempt to fire Cordray, but the president has been cautious. He told a group of bankers meeting with him last month that he wasn’t sure it was worth it given Cordray’s remaining time in office. At that meeting, National Economic Council Director Gary Cohn told the president that Cordray would likely run for governor of Ohio, a popular rumor among Republicans. Until either Cordray leaves, his term ends, or the president fires him, a successor is unlikely to be announced, but the administration is liable to be looking for candidates nevertheless.

Janet Yellen, chair of the U.S. Federal Reserve, pauses while speaking during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, D.C., U.S., on Wednesday, March 15, 2017. The Federal Reserve raised its benchmark lending rate a quarter point and continued to project two more increases this year, signaling more vigilance as inflation approaches its target. Photographer: Andrew Harrer/Bloomberg

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Federal Reserve

Fed Chair Janet Yellen’s term on the board of governors doesn’t expire until January 2024, but her tenure as chairman expires in February of 2018. That gives Trump some lead time to find a successor. If Yellen chooses to stay on the board, however, he would have to choose between one of the other six governors (assuming the three vacant positions have been filled by that time), which could narrow his options. Yellen has not said whether she will leave if she is not reappointed as chairman.

Debbie Matz, chairman of the National Credit Union Administration (NCUA), listens during a House Financial Services Committee hearing in Washington, D.C., U.S., on Tuesday, Dec. 8, 2015. The Financial Stability Oversight Council's effort to enhance its transparency is "important," Securities and Exchange (SEC) Commissioner Mary Jo White said at the hearing. Photographer: Drew Angerer/Bloomberg *** Local Caption *** Debbie Matz

Drew Angerer/Bloomberg

Open seat on NCUA Board

Although President Trump moved quickly to elevate the only Republican — J. Mark McWatters — on the National Credit Union Administration Board to acting chairman, the seat vacated by former NCUA Chairman Debbie Matz remains open.

Richard Metsger, nominee to be a member of the National Credit Union Administration Board, speaks during a Senate Banking Committee nominations hearing in Washington, D.C., U.S., on Thursday, June 27, 2013. U.S. Representative Mel Watt faced lawmakers skeptical of his knowledge of housing-finance issues today at a Senate Banking Committee hearing on his nomination to oversee mortgage giants Fannie Mae and Freddie Mac. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Richard Metsger

Andrew Harrer/Bloomberg

Another NCUA seat opening soon

CUA Board Member Rick Metsger, who briefly chaired the board following Matz' departure, will see his term expire this summer, giving Trump the opportunity to remake two-thirds of the board in fairly short order — when he gets around to it.