Last October, as part of the Podesta email leaks, we disclosed the particularly close relationship between Fed governor Dan Tarullo and Barack Obama, which emerged as part of a previously undisclosed memo involving the AIG bailout. We speculated that as a result of this now public disclosure it was possible that Tarullo’s days at the Fed were numbered should Donald Trump win the election. Trump won, and moments ago Dan Tarullo unexpectedly announced that he is resigning in early April, just days after the Fed’s general counsel Alvarez also announced that he is departing the Fed.
What makes Tarullo’s resignation particularly notable is that Tarullo has been the Fed’s “regulatory point man” since 2009, suggesting some regulatory friction has emerged.
In light of Trump’s vow to crush Wall Street regulations, one can see why Tarullo thought his services are no longer necessary.
Tarullo’s brief resignation letter to Fed Chairwoman Janet Yellen didn’t give a reason for his departure. He said he has been privileged to serve at the Fed for eight years. The letter said his resignation will take effect ‘on or about’ April 5.
As the WSJ further notes, “Tarullo’s future has been a matter of debate in the financial sector. He was appointed by President Barack Obama in January 2009 and overhauled the way the Fed oversees the largest U. S. banks.
This post was published at Zero Hedge on Feb 10, 2017.