U.S. Rep. Maxine Waters (D-CA) and Financial Services Committee Democrats are urging Federal Reserve Board Chair Janet Yellen to continue regulatory activities despite a request from committee Republicans to cease until a vice chair for supervision has been confirmed.
Waters, the ranking member of the Financial Services Committee, and 21 Democrats on the committee sent a letter to Yellen on last week, saying the Federal Reserve Board would be neglecting its responsibilities if it paused activities until a vice chair for supervision was named.
The position is currently vacant. Last week, David Nason, president and CEO of GE Energy Financial Services, withdrew from consideration, leaving the length of the vacancy in question. The position was created by the Dodd-Frank Act and has not been filled in six years.
“We will closely monitor the Federal Reserve Board’s actions in the coming weeks and months to ensure that the duties Congress has tasked it with by law are fully and appropriately carried out,” the letter said.
On Feb. 23, House Financial Services Committee Chair Jeb Hensarling wrote to Yellen that unless there is an emergency, the Federal Reserve should not make or adopt new rules until a Senate confirmation of a vice chairman for supervision.
“The Federal Reserve Board must not wait to exercise its proper regulatory authority to impose the strictest standards on the largest, most complex banks that pose the greatest risk to our financial system while reducing any unnecessary compliance requirements for community banks throughout the country,” the letter said.