Daniel Tarullo, Fed's "Regulatory Point Man", Unexpectedly Resigns

Tyler Durden's picture

Last October, as part of the Podesta email leaks, we disclosed the particularly close relationship between Fed governor Dan Tarullo and Barack Obama, which emerged as part of a previously undisclosed memo involving the AIG bailout. We speculated that as a result of this now public disclosure it was possible that Tarullo's days at the Fed were numbered should Donald Trump win the election. Trump won, and moments ago Dan Tarullo unexpectedly announced that he is resigning in early April, just days after the Fed's general counsel Alvarez also announced that he is departing the Fed.

What makes Tarullo's resignation particularly notable is that Tarullo has been the Fed's "regulatory point man" since 2009, suggesting some regulatory friction has emerged.

In light of Trump's vow to crush Wall Street regulations, one can see why Tarullo thought his services are no longer necessary.

Tarullo’s brief resignation letter to Fed Chairwoman Janet Yellen didn’t give a reason for his departure. He said he has been privileged to serve at the Fed for eight years. The letter said his resignation will take effect “on or about” April 5.

As the WSJ further notes, "Tarullo’s future has been a matter of debate in the financial sector. He was appointed by President Barack Obama in January 2009 and overhauled the way the Fed oversees the largest U.S. banks.

His term doesn’t expire until 2022, but President Donald Trump is widely expected to appoint someone else to the currently vacant post of Federal Reserve vice chairman in charge of bank oversight.

 

Mr. Tarullo has effectively filled that role, even without that title. A Trump nominee likely would challenge Mr. Tarullo’s influence.

In a statement, Yellen said that "Dan led the Fed's work to craft a new framework for ensuring the safety and soundness of our financial system following the financial crisis and made invaluable contributions across the entire range of the Fed's responsibilities."

"My colleagues and I will truly miss his deep expertise, impeccable judgment, wise insight, and strategic counsel."

Tarullo, 64, was appointed to the Board by President Obama for an unexpired term ending January 31, 2022. During his time on the Board, he served as Chairman of the Board's Committee on Supervision and Regulation. He was also Chairman of the Financial Stability Board's Standing Committee on Supervisory and Regulatory Cooperation.

In his brief departure letter, Tarullo just said two sentences:

"After more than eight years as a member of the Board of Governors of the Federal Reserve System, I intend to resign my position on or around April 5, 2017. It has been a great privilege to work with former Chairman Bemanke and Chair Yellen during such a challenging period for the nation's economy and financial system."

* * *

With his departure, the market appears even more confident that a substantial crackdown on Wall Street regulations is imminent, and has pushed stocks to new all time highs.

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Raffie's picture

He knows that sh*t rolling down hill is coming and leaving before it arrives.

Just Another Vietnam Vet's picture

He is bright enough to know that a Useless Expensive Dead Weight is not long in this new admin.

Like a bad tenant being evicted, and moving out the day before the sheriff shows up.

A case of a fly on the wall with a direct line to leak info to the libtard puppetmasters ?  

jcaz's picture

...And of course, clueless Yellen sits on her ass and hums away......

BaBaBouy's picture

Departing ?... Who Fucking Cares ...

froze25's picture

All the dude wanted was his rug back. I will still chalk this one up in the victory column.

The Merovingian's picture

Rats from the sinking ship.

Syrin's picture

One less SWAMP creature.  Hope he gets to live with some unvetted Iraqi refugees, courtesy of the 9th Circuit.

Uzda Farce's picture

Daniel Tarullo is a member of the Rockefeller/CFR along with Janet Yellen and the other current Fed governors. Also every Fed chairman since WW2. See member lists at cfr dot org. It will be interesting to see where his replacement comes from.

https://www.federalreserve.gov/aboutthefed/default.htm

junction's picture

Maybe he can open a gay pizza parlor with John Podesta.

hedgeless_horseman's picture

 

Tarullo has been the Fed's "regulatory point man" since 2009

 

http://www.zerohedge.com/news/2016-05-24/nobody-ready-willing-or-able-as...

 

3)  What is your position on the Federal Reserve Banks being responsible for regulating and supervising the very same banks that own them?

 

Conflict of Interest

 

A term used to describe the situation in which a public official or fiduciary who, contrary to the obligation and absolute duty to act for the benefit of the public or a designated individual, exploits the relationship for personal benefit, typically pecuniary.

 

In certain relationships, individuals or the general public place their trust and confidence in someone to act in their best interests. When an individual has the responsibility to represent another person—whether as administrator, attorney, executor, government official, or trustee—a clash between professional obligations and personal interests arises if the individual tries to perform that duty while at the same time trying to achieve personal gain. The appearance of a conflict of interest is present if there is a potential for the personal interests of an individual to clash with fiduciary duties, such as when a client has his or her attorney commence an action against a company in which the attorney is the majority stockholder.

 

Incompatibility of professional duties and personal interests has led Congress and many state legislatures to enact statutes defining conduct that constitutes a conflict of interest and specifying the sanctions for violations. A member of a profession who has been involved in a conflict of interest might be subject to disciplinary proceedings before the body that granted permission to practice that profession.

 

 

http://legal-dictionary.thefreedictionary.com/conflict+of+interest

FreezeThese's picture

Lets go with Distancing ... $400

hedgeless_horseman's picture

 

They'll just get a new fox to guard the hen house.

WTFRLY's picture

Joo World Order has been eating itself since 2008.

hedgeless_horseman's picture

 

All the best rackets are self-regulated.

 

The Board of Governors of the Federal Reserve System has supervisory and regulatory authority over a wide range of financial institutions, including state-chartered banks that are members of the Federal Reserve System (state member banks), bank holding companies, thrift holding companies and foreign banking organizations that have a branch, agency, a commercial lending company subsidiary or a bank subsidiary in the United States. While the Board establishes supervisory policies, the Board delegates day-to-day supervision to the Reserve Banks.

 

 

https://www.newyorkfed.org/financial-institution-supervision/financial-i...

 

 

 

 

For instance, each of the 12 Reserve Banks operates within its own particular geographic area, or District, of the United States, and each is separately incorporated and has its own board of directors. Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. 

 

 

https://www.federalreserve.gov/faqs/about_14986.htm

jcaz's picture

....And the day after he leaves,  he's on a flight to Qatar for an "extended vacation"......

bamawatson's picture

hedgeless-- "All the best rackets are self-regulated." 

http://cyberliar.com/

Jayda1850's picture

Any doubt a GS alum will be put in his place?

froze25's picture

I wouldn't even know what other outfit someone would come from anymore.

small axe's picture

guy would make a nice hood ornament on an 18-wheeler

the lion of flanders's picture

the swamp is draining. still along way to go

 

David449420's picture

No, the swamp is not being drained.  It is being repopulated.  "Look at the New Boss, same as the Old Boss". 

barysenter's picture

If it weren't for you damn kids he would have escaped with his cut!

BullyBearish's picture

the fed and regulation are two words that should NEVER be in the same sentence...

Salsa Verde's picture

The odds have never been more in a favor of an audit for the Federal Reserve.  Best to get out now while the exits are still accessible.

Fred Hayek's picture

Um, why does an organization which doesn't recognize anyone else's ability to regulate its practices and which exercises zero oversight over those entities it is supposed to be regulating need a "regulatory point man"?

 

NoWayJose's picture

Trump has to get KellyAnne off the Federal payroll too - and just pay her himself. That way she can swat the libs and say what she wants. She had that freedom during the campaign, but once she goes on the Federal payroll the rules tie her hands.

skunzie's picture

F*ck the rules.  Those idiotic DC bastards that promulgated these rules in the first place are what has gotten us into many of these messes today!

 

Grandad Grumps's picture

Seems as if BOTH top lawyers got wind of something and resigned. What could it possibly be? Do they think that resigning will save them from being in a prison cell with Bubba?

methink74's picture

Prison? hopefully the grave.

Baby Eating Dingo22's picture

Go tRUMP!!

CRUSH those "swampy" regulations hurtin' those poor fella's trying to make a buck

This is why ZH loves ya. You're everything they've championed for the past 8 years

 

Herdee's picture

Someone has to fill the vacancy that promises not to raise interest rates when Trump spends another $9 Trillion minimum.

WillyGroper's picture

Wikileaks 2017 Vault?

lotsa pedo busts happening.

shizzledizzle's picture

2 rats abandon ship in as many days.... Hmmm.

orangegeek's picture

2 more pizzagaters are gone.

 

And the swamp is not as foul smelling as it was yesterday

Consuelo's picture

 

 

'To spend more time with my family...'

Son of Captain Nemo's picture

Dan

All we can tell ya brother that in the pantheon of financial terrorism and misery you've created you've outdone the legion of "money lenders" that came before you breaking every record in the economic "holocaust" of "holocausts"!...

And what is even more astounding that your throat and testicles didn't get severed long before now!

It speaks volumes that you have actually gone through the formal process of making public your resignation after all of the financial chaos you've created on your watch!

Shame on you with that "arrogance"?!!! "NO". Sadly... Shame on US for allowing you to get this far!!!

SuperRay's picture

They discovered last week that he's a goy!! Oy vey! Out, out, by next week at the latest

PoasterToaster's picture

Is that the sound of water getting in?  Squeek Squeek, eh? lol

fearnot's picture

In case you missed this Scott Alvarez head of Fed Legal Cousel for 12 years also calling it quits after a 36 year career with Fed.

 

https://www.federalreserve.gov/newsevents/press/other/20170208a.htm

 

prymythirdeye's picture

Privileged to work for Bernanke and Yellen, huh?  Another one that will hopefully be strung by his balls to a lamp post.  Fuck you Tarullo!  Hope you drive your car into a tree.

Pumpkin's picture

Put an ankle braclet on that bastard, he's running for the hills.

skunzie's picture

Maybe the Clinton's do have a role to play in the Trump administration.  They could be in charg of Arkanicides of the rats departing Mordor (aka Washington DC).

roadhazard's picture

His job was to do nothing.

IndyPat's picture

I have a dream of doing nothing.

Steeley's picture

Can I get an "Amen!" ?

sinbad2's picture

People jumping ship before the lynchings start.

sinbad2's picture

The Federal Reserve is supposedly independant, but the President appoints the staff?