Cordray, currently at the helm of Federal Student Aid, is on the short list for the Federal Reserve’s top regulatory position.
12/09/2021 10:30 AM
2 minute read
There are three candidates for the Federal Reserve’s vice chair for supervision, including Richard Cordray, who in the last year has been at the U.S. Department of Education as chief operating officer for Federal Student Aid.
American Banker reports that, in addition to Cordray, Raphael Bostic, Federal Reserve Bank of Atlanta president, and Sarah Bloom Raskin, a Duke University law professor, are also in the running.
Cordray is considered a “dark horse” candidate for the Fed job, according to the article; however, Senate Banking Committee Chairman Sherrod Brown, D-Ohio, has confirmed Cordray is under review as a candidate.
Cordray was named COO of Federal Student Aid in May and served as director of the Consumer Financial Protection Bureau from 2012 to 2017. He oversees the federal student loan program now, where payments on hold during the COVID-19 pandemic are set to resume in February.
He is likely to have the backing of U.S. Sen. Elizabeth Warren, D-Mass., who thought of the CFPB, “but his lack of experience in prudential bank supervision could be an obstacle,” according to American Banker.
“Some Fed watchers suggest Cordray would be an odd fit for the job. But others think Cordray would relish rolling back many of the Trump-era changes made by [Gov. Randal] Quarles such as simplifying banks’ stress-testing regime and tailoring certain big-bank requirements,” it reports. “Banks certainly would bristle if Cordray were chosen for a Fed seat given that he was a thorn in their side during the financial crisis, collecting nearly $12 billion in settlements during his tenure at the CFPB from 2012 to 2017.”
Quarles’ term as the Fed’s vice chair for supervision ended recently and he plans to leave the board this month.
Read more on the Fed candidates in American Banker’s report here.
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