Biden will nominate a former Treasury official Barr to the position of Fed Chair

Biden will nominate a former Treasury official Barr to the position of Fed Chair ...

WASHINGTON, April 15 (Reuters) - President Joe Biden of the United States announced on Friday that he would nominate former Treasury official Michael Barr to serve as the Federal Reserve's top regulatory official, replacing Sarah Bloom Raskin who died in March after failing to receive the backing of moderate Democrats.

Barr, who is now a professor at the University of Michigan, served as a central figure in the Treasury under President Barack Obama when the Congress approved the 2010 Dodd-Frank financial reform legislation, and helped establish the Consumer Financial Protection Bureau (CFPB).

"Michael brings the expertise and experience that we need to fulfill this important position in a critical time for our economy and families across the country," Biden said in a statement.

The Fed vice chair for supervision is responsible for overseeing the largest banks, making appropriate capital ratios, and represents the United States in cross-border discussions on international banking standards.

Barr, as the Treasury assistant secretary for financial institutions, helped shape the Wall Street reform, which was enacted following the global financial crisis of 2008-2009, according to Biden, adding that Barr had substantial support across the political spectrum.

The president said he would work with the Senate Banking Committee in order to expedite Barr's nomination swiftly, and urged the Senate to swiftly confirm his four other Fed nominees, including Jerome Powell for a second term as Fed president.

Barr had been appointed on a bipartisan basis for the Treasury seat in 2009, according to Biden.

Sherrod Brown, the head of the Senate Banking Committee, said she would support Barr's nomination and urged his Republican colleagues to avoid personal attacks and support him.

"At a time when working families are struggling with rising prices while corporate profits continue to increase, this task is vital to ensure the economy works for everyone," Brown said.

Barr's name had been floated for a second bank regulatory position, which headed up the Office of the Comptroller of the Currency, but some progressives opposed him, citing his work with certain financial firms after leaving the government.

Barr had spent his career protecting consumers, and he played a major role in the creation of both the CFPB and the Fed position, which was now being nominated. He has also served as the White House's National Economic Council.

Richard Corday, a former CEO of the Financial Protection Bureau, has described Barr as a "progressive champion," while Senator Elizabeth Warren has described him as "a hero" for his work on Dodd-Frank.

"He was instrumental in the passage of Dodd-Frank, to ensure that a future financial catastrophe would not result in lasting economic hardship for working families," Biden said.

Raskin was eliminated from consideration for the top regulatory position at the Federal Reserve on March 15, a day after Democratic Senator Joe Manchin and moderate Republicans said they would not support her, leaving no hope for the Senate's full backing.

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