Biden nominates a new top Fed banking regulator after Raskin withdrawal

President Joe Biden on Friday announced his intent to nominate former Obama Treasury official Michael Barr as the vice chair for supervision of the Federal Reserve, a move that would install a key architect of the Dodd-Frank Act of 2010 as the nation’s top banking regulator.

The announcement comes after Biden’s initial nominee, Sarah Bloom Raskin, withdrew her nomination in March, following opposition in the Senate based on her stance on climate change and fear that she could discourage banks from lending to fossil fuel companies. Democratic Sen. Joe Manchin of West Virginia joined Republicans in opposing her, effectively torpedoing her nomination.

In a statement Friday, Biden touted Barr, who is currently the dean of the University of Michigan’s public policy school, for his “strong support from across the political spectrum.” Barr previously served in the Obama administration as assistant secretary for financial institutions under Treasury Secretary Timothy Geithner, and was instrumental in designing Dodd-Frank, one of the most expansive pieces of consumer protection legislation to come out of the 2008 financial crisis. The banking rule also created the role of vice chair for supervision, the position for which Barr is nominated, as Biden noted in a statement released Friday.