financialservices.house.gov

Cmte Financial Services (R)
Contact:


Hill, Scott, Colleagues Underscore Importance of Filling Federal Reserve Vacancy

Washington, Mar 3 -

House Financial Services Committee Chairman French Hill (R-AR) and Senate Banking Committee Chairman Tim Scott (R-SC) led a letter to Treasury Secretary Scott Bessent highlighting the need to quickly fill the role of Vice Chair for Supervision of the Board of Governors of the Federal Reserve System.

House Financial Services Committee Republican Reps. Bill Huizenga (R-MI), Pete Sessions (R-TX), Ann Wagner (R-MO), Roger Williams (R-TX), Tom Emmer (R-MN), Andy Barr (R-KY), Barry Loudermilk (R-GA), Warren Davidson (R-OH), Bryan Steil (R-WI), William Timmons (R-SC), Marlin Stutzman (R-IN), Dan Meuser (R-PA), Young Kim (R-CA), Andrew Garbarino (R-NY), Scott Fitzgerald (R-WI), Mike Flood (R-NE), Mike Lawler (R-NY), Monica De La Cruz (R-TX), Zach Nunn (R-IA), Lisa McClain (R-MI), Maria Salazar (R-FL) Troy Downing (R-MT) Mike Haridopolos (R-FL), and Tim Moore (R-NC) joined the letter. Senate Banking Committee Republican Senators Mike Crapo (R-ID), Thom Tillis (R-NC), Cynthia Lummis (R-WY), and Bernie Moreno (R-OH) also signed on.

In the letter, the lawmakers wrote, “We respectfully request that you fill the role of VCS with a strong leader as soon as possible to ensure that the important tasks of (i) unwinding the politicized regulations promulgated by the Board during the Biden administration, (ii) ensuring that there is accountability at the Board, and (iii) right-sizing the regulatory and supervisory work of the Board are not delayed…Past gaps and poor leadership within the VCS role on the Board’s Committee on Supervision and Regulation has led to disfunction at the Board and contributed to the second, third, and fourth largest bank failures in our nation’s history. Only a VCS empowered in that position can effect necessary changes at the Board as quickly as is possible.”

Read the full letter here or below. 

Dear Secretary Bessent,

We write to you today regarding the vacancy of the Vice Chair for Supervision (VCS) of the Board of Governors of the Federal Reserve System (Board). We respectfully request that you fill the role of VCS with a strong leader as soon as possible to ensure that the important tasks of (i) unwinding the politicized regulations promulgated by the Board during the Biden administration, (ii) ensuring that there is accountability at the Board, and (iii) right-sizing the regulatory and supervisory work of the Board are not delayed.

Earlier this year, current VCS Michael Barr announced he would step down effective February 28, 2025. As part of that announcement, the Board noted that it “does not intend to take up any major rulemakings until a Vice Chair for Supervision successor is confirmed.” This effectively stalls major initiatives – such as the reevaluation of Basel III Endgame and reexamination of the supervision and examination process of the Board to prevent future instances of harmful regulator-initiated “debanking”– which require the immediate attention of the VCS.

Past gaps and poor leadership within the VCS role on the Board’s Committee on Supervision and Regulation has led to disfunction at the Board and contributed to the second, third, and fourth largest bank failures in our nation’s history. Only a VCS empowered in that position can effect necessary changes at the Board as quickly as is possible.

Swift action to fill the role of Vice Chair for Supervision is vital to our shared goals to foster a prosperous U.S. economy and engage in meaningful regulatory review. We look forward to working with you and who you select for this role to bring about these important changes for the American people.

Further Background:

On January 6, 2025, the Federal Reserve Board announced that Michael Barr would resign as Vice Chair for Supervision, effective February 28, 2025.