Official announcements from major U.S. banks

Fed's Regulation Hardliner Michael Barr to Step Down as Vice Chair on Feb. 28, Avoiding Clash with Trump

Jan 6, 2025, 04:07 PM

Michael Barr, the Federal Reserve's Vice Chair for Supervision and a known regulation hardliner, plans to step down from his role effective February 28, 2025, the Fed announced on Monday. He will remain on the Fed Board as a governor until his term ends in January 2032. Barr's departure preempts a potential legal battle over efforts to demote him, as advisors to President-elect Donald Trump had seriously considered such a move. This decision allows the incoming administration to nominate a successor who would require confirmation by the Republican-controlled Senate. All three federal bank regulators—the Fed, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation—are expected to see changes under Trump, who could make crypto-friendly appointments. Barr's exit could signal a shift in banking regulation, as banks have been unable to engage with crypto under his supervision. Shares of major U.S. banks rose following the announcement.