LONDON (Reuters) – Federal Reserve Governor Randal Quarles is set to be appointed the new head of the Financial Stability Board in a bid to keep a skeptical United States engaged in the international body, two people with knowledge of the discussions said on Monday.
Bank of England Governor Mark Carney steps down in December as chair of the FSB, which has been coordinating a raft of new rules for the Group of 20 economies since the global financial crisis a decade ago.
Klaas - Knot - President - Central - Bank
Klaas Knot, president of the Dutch Central Bank, was also on the shortlist for chair and will become the FSB’s vice chair, the people said. The arrangement has yet to be formally agreed.
Quarles, who was appointed by President Donald Trump as the Fed’s first head of banking supervision last year, is seen as a pragmatist on regulation. European countries hope that by appointing Quarles, they will keep Washington fully engaged in the body, the sources said.
Compromise - Way - Klaas - Source
“It’s a compromise, a way of making sure that Klaas does not completely lose,” a regulatory source said.
“For the European members of FSB concerned about the commitment of the United States, it’s a way for them to ensure that part of the leadership will be shared with a European.”
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The FSB, Fed and Dutch Central Bank declined to comment.
European regulators were alarmed when U.S. President Donald Trump last year directed American regulators to review post-crisis regulations with an eye to stimulating lending and boosting the economy.
They feared that directive...
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