US banking regulator Michael Barr has stepped down from his role early, citing the “risk of a dispute” over his supervisory position. The decision clears the way for President-elect Donald Trump to appoint someone new.
Barr had faced criticism from Republicans and previously rejected suggestions he resign before his term ends in 2026. However, he now plans to remain on the Federal Reserve’s board but in a reduced role.
The move paves the way for Trump to fill the supervisory position, which was created to improve bank oversight after the financial crisis. Barr joins other Washington officials who have pre-emptively announced their resignation ahead of Trump entering the White House later this month.
Gary Gensler, the head of the Securities and Exchange Commission, also recently resigned, while FBI director Chris Wray has said he will step down before the new administration takes over. The Federal Reserve’s governors can only be removed from the board by the president for cause.
Barr’s resignation was announced as shares in major US banks headed higher on the news.
Source: https://www.bbc.com/news/articles/c5yg1g7zzpgo