Fed's Powell Takes Wall Street Oversight Reins From Departing Tarullo

The duties of aggressive Wall Street regulator Daniel Tarullo have been taken over for now by Federal Reserve Governor Jerome Powell, a former Republican-administration Treasury official who was once a partner at investment giant Carlyle Group.

Powell’s assignment to head the Committee on Supervision and Regulation gives him authority over the Fed division that’s responsible for writing banking rules, overseeing Wall Street and issuing enforcement actions. However, the responsibilities will likely be temporary as the agency awaits President Donald Trump’s selection of a Fed vice chairman of banking supervision.

The administration expects to announce Fed governor nominees in the “very near future,” Gary Cohn, Trump’s chief economic adviser, said Friday in a Bloomberg Television interview.

Meanwhile, Powell — along with the supervision committee’s other member, Governor Lael Brainard — will oversee the Fed work that gave Tarullo a reputation as one of the industry’s toughest regulators in his eight-year tenure.