Banks rest hopes for lighter regulatory burden on Fed's Quarles
Randal Quarles
WASHINGTON (Reuters) - Big banks keen to see bottom-line benefits from U.S. President Donald Trumpâs pledge to cut red tape are pinning their hopes primarily on  Randal Quarles   the new head of bank supervision at the Federal Reserve.
FILE PHOTO: U.S. Treasury Under Secretary for Domestic Finance Randal Quarles speaks during a Reuters sponsored panel discussion on the future of the U.S. housing foundations Fannie Mae and Freddie Mac in New York  July 19  2006. REUTERS/Keith Bedford/File Photo
 Quarles   a former Wall Street lawyer and private equity investor nominated to the Fed by Trump last summer and sworn in this month  will have the most influence in such efforts due to the central bankâs extensive financial oversight powers.
âNormally  when you get a new governor at the Fed  you donât see anything for a few months â said Wayne Abernathy  executive vice president at the American Bankers Association and a former colleague of  Quarles  at the Treasury Department under President George W. Bush.
âI think the expectations for  Quarles  are higher  because there was so much fanfare about the position.  He âs going to feel some kind of pressure to show something.â
With  Quarles  on board  banks and analysts expect the Fed to ease aspects of everyday examination and supervision  in particular reducing the number of post-inspection notices demanding fixes to technical compliance issues  ranging from sales practices to outsourcing contracts.
The Fedâs annual stress tests analyzing how a bank would cope with market shocks - known as CCAR - are another key area where  Quarles  is likely to quickly make  his  mark.
âNow that  Randal Quarles  is in place  what we expect is that in fairly short order there will be some modifications to the way the CCAR works  because that is something that can largely be done at the behest of supervision â Guy Moszkowski  managing partner at financial analyst firm Autonomous Research  told a conference on Tuesday.
Still  those who know  Quarles  believe  he  is well-suited in terms of experience and personality to navigate the Fedâs halls of power. They point to  his  success in helping to negotiate trade deals during  his  time at the Treasury.
â He  isnât the kind of person that bows to consensus â said the ABAâs Abernathy. â He âs the type of person who makes consensus.â
WASHINGTON (Reuters) - Big banks keen to see bottom-line benefits from U.S. President Donald Trumpâs pledge to cut red tape are pinning their hopes primarily on   [TGT]    the new head of bank supervision at the Federal Reserve.
FILE PHOTO: U.S. Treasury Under Secretary for Domestic Finance  [TGT]  speaks during a Reuters sponsored panel discussion on the future of the U.S. housing foundations Fannie Mae and Freddie Mac in New York  July 19  2006. REUTERS/Keith Bedford/File Photo
 Quarles   a former Wall Street lawyer and private equity investor nominated to the Fed by Trump last summer and sworn in this month  will have the most influence in such efforts due to the central bankâs extensive financial oversight powers.
âNormally  when you get a new governor at the Fed  you donât see anything for a few months â said Wayne Abernathy  executive vice president at the American Bankers Association and a former colleague of  Quarles  at the Treasury Department under President George W. Bush.
âI think the expectations for  Quarles  are higher  because there was so much fanfare about the position.  He âs going to feel some kind of pressure to show something.â
With  Quarles  on board  banks and analysts expect the Fed to ease aspects of everyday examination and supervision  in particular reducing the number of post-inspection notices demanding fixes to technical compliance issues  ranging from sales practices to outsourcing contracts.
The Fedâs annual stress tests analyzing how a bank would cope with market shocks - known as CCAR - are another key area where  Quarles  is likely to quickly make  his  mark.
âNow that   [TGT]   is in place  what we expect is that in fairly short order there will be some modifications to the way the CCAR works  because that is something that can largely be done at the behest of supervision â Guy Moszkowski  managing partner at financial analyst firm Autonomous Research  told a conference on Tuesday.
Still  those who know  Quarles  believe  he  is well-suited in terms of experience and personality to navigate the Fedâs halls of power. They point to  his  success in helping to negotiate trade deals during  his  time at the Treasury.
â He  isnât the kind of person that bows to consensus â said the ABAâs Abernathy. â He âs the type of person who makes consensus.â