Biden’s Top Bank Cop Who Oversaw Wave Of Regional Failures Resigns Ahead Of Potential Fight With Trump

Michael Barr, the Federal Reserve’s vice chair for supervision, announced that he would step down on Monday amid speculation President-elect Donald Trump would move to fire or demote him before the conclusion of his term in 2026.

Barr, who was appointed by President Joe Biden in 2022, said he will resign from the role by Feb. 28 or earlier but will continue to serve as a member of the Fed’s Reserve Board, according to a press release from the central bank. His departure from the nation’s top banking supervision role helps clear the way for Trump to reform financial regulations and prevents the legal battle that could have arisen if the president-elect had moved to fire or demote him.

“It has been an honor and a privilege to serve as the Federal Reserve Board’s vice chair for supervision, and to work with colleagues to help maintain the stability and strength of the U.S. financial system so that it can meet the needs of American families and businesses,” Barr said in the release. “The position of vice chair for supervision was created after the Global Financial Crisis to create greater responsibility, transparency, and accountability for the Federal Reserve’s supervision and regulation of the financial system. The risk of a dispute over the position could be a distraction from our mission. In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor.”

Barr had attempted to overhaul banking regulations during his time as vice chair, pushing to hikereserve requirements — the amount of cash banks are legally required to keep on hand — for banks holding $250 billion or more in assets by 20%, before amending the regulation to a much smaller increase of 9%.