WASHINGTON, May 3 (Reuters) - U.S. Treasury Secretary Janet
Yellen plans to make her mark by naming a new supervisor for a
major U.S. banking regulator that Democrats say was too friendly
to large banks under the Trump administration, according to two
people familiar with the matter.
Yellen is expected to name Michael Hsu as the acting head of
the Office of the Comptroller of the Currency (OCC), which
regulates the country's large banks. Hsu is currently associate
director of the Fed's bank supervision and regulation division,
which shares responsibility for monitoring the nation's largest
The Wall Street Journal first reported the move.
The move will allow the Biden administration to overhaul the
leadership of the agency, which Democrats say has not done
enough to protect consumers.
Hsu will replace Blake Paulson, the current acting head and
a long-time OCC official who rose to the acting role under the
The Treasury did not immediately respond to a request for
While top posts at places like the Securities and Exchange
Commission and Consumer Financial Protection Bureau have
permanent leadership or nominees in waiting from President Joe
Biden, the OCC has gone without leadership picked by the new
Democrats have fought over the best leader for the agency,
which they believe could play a key role in addressing wealth
inequality and racial injustice problems.
Michael Barr, a University of Michigan Law School professor
and former Treasury official under President Barack Obama was
under consideration for the post, as was Mehrsa Baradaran, law
professor at the University of California's Irvine School of
Democrats and the Biden administration have yet to coalesce
around a single candidate, though, and a slim majority in the
U.S. Senate means every Democrat would likely need to back a
particular nominee for them to be confirmed.
(Reporting by Noor Zainab Hussain in Bengaluru and Pete
Schroeder in Washington; Editing by Devika Syamnath and Lisa