Fischer’s Resignation Puts Wall Street Reform in the Crosshairs

Sept. 6, 2017

Fischer’s Resignation Puts Wall Street Reform in the Crosshairs

Statement of Bartlett Naylor, Financial Policy Advocate, Public Citizen’s Congress Watch Division

On Wednesday, Federal Reserve Vice Chair Stanley Fischer tendered his resignation from the Board of Governors, effective Oct. 13, 2017. This means President Donald Trump can fill four of the seven seats. If Trump replaces Chair Janet Yellen, whose term expires in February 2018, and she also resigns as governor when her term expires in 2024, Trump nominees will control five of the seven seats.

Gov. Fischer’s resignation dramatically alters the balance of federal bank regulation and imperils the safeguards erected following the financial crash of 2008. Even if Trump replaces Yellen as chair and she remains as governor, Trump nominees will control four of the seven board seats. They’re likely to control five, if Yellen leaves. That means Trump’s nominees can demolish the already fragile rules written to implement the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.

The U.S. Treasury Department blueprint for Wall Street makes clear that Trump wants regulators to roll back key foundations of the currently thriving and stable financial sector, including placing limits on the U.S. Consumer Financial Protection Bureau and loosening Volcker Rule restrictions on bank gambling with taxpayer-backed deposits.

The U.S. Senate must insist that any nominee be prepared to stand up to Wall Street. Public Citizen opposes Trump’s nomination of Randal Quarles to serve as governor, whose confirmation vote in the U.S. Senate Banking Committee is slated for Sept. 7.

Public Citizen applauds Gov. Fischer’s stalwart defense of needed financial reforms.

The Fed is the most important Wall Street overseer. Since Fed board terms last 14 years, Trump’s appointees could be responsible for lasting damage.

Fischer resignation letter: https://twitter.com/i/web/status/905444482350538752