President Donald Trump will nominate former Treasury official Randal Quarles to the Federal Reserve Board, the White House said on Monday.
The Trump administration is looking to fill three open positions on the Federal Reserve's seven-member Board of Governors. The other likely nominees include Marvin Goodfriend, a Carnegie Mellon University professor of economics, The New York Times first reported, and Robert Jones, chairman and chief executive of Evansville, Indiana-based Old National Bancorp (ONB) , according to a Bloomberg report.
If confirmed by the Senate, Quarles will serve as the Fed's vice chairman for bank supervision. The role was created by Congress following the 2008 financial crisis but was never filled during the Obama administration, although Daniel Tarullo essentially filled the position before he resigned from the Fed in April.
Considering the president's plan to nominate Quarles, TheStreet examines the men who may be joining the Fed board.
This story was updated on July 11 to reflect the President's plan to nominate Randal Quarles to the Fed board. The story was originally published on June 9.
Quarles, 59, is currently a managing director at the private equity firm Cynosure Group, according to BoardEx, a relationship mapping service of TheStreet Inc.
Quarles was an attorney at the Wall Street law firm of Davis Polk & Wardwell LLP before joining the George W. Bush administration in 2002. The former under secretary for domestic finance left the administration in 2006 and became a partner at the Carlyle Group (CG) , one of the world's largest private equity firms. In 2014, he would go on to help found the Cynosure Group.
Quarles would be the first person to serve in the role of vice chairman for supervision. He would also have a vote on monetary policy, the New York Times reported.
The former Treasury Department official would be in a key position to oversee any changes to banking regulations. In a March 2016 Wall Street Journal opinion piece he co-wrote, Quarles said that he didn't support "arbitrarily taking an ax to big banks and irreparably damaging the economy."
A request for comment by the Cynosure Group went unanswered by the time of publication.
Goodfriend is a professor of economics at Carnegie Mellon's Tepper School of Business, focusing on macroeconomic fluctuations, money and banking, international finance, and economic development.
Goodfriend, 66, may be a familiar face to current governors who may know him from his role as senior vice president and policy advisor at the Federal Reserve Bank of Richmond from 1993 to 2005. According to his Carnegie Mellon biography, he has also been a visiting economist and scholar at the Federal Reserve Board. Goodfriend also served as a senior staff economist for the Council of Economic Advisors at the White House.
Jones, 61, has been the chairman and CEO of Old National Bancorp in Indiana for 12 years.
Serving as a member of the Federal Reserve Bank of St. Louis's advisory board from 2008 to 2013, Jones has experience working with the Federal Reserve. Now, Bloomberg reports, Jones is being considered for Federal Reserve governor among other candidates.
A 2015 law amending the Federal Reserve Act requires the President "to appoint at least one member with demonstrated primary experience working in or supervising community banks having less than $10 billion in total assets."
Jones spent eight years leading a bank of that description, as Old National didn't surpass that threshold until 2013. As of December 2016, its assets totaled nearly $15 billion.
"He's honored and humbled his name has been mentioned," Jeffrey Knight, chief legal counsel at Old National, said in a recent phone interview. "He thinks it's a reflection of the community bank that Old National is."