Randal Quarles nominated as Federal Reserve's bank supervisor

July 11 (UPI) -- President Donald Trump nominated Randal Quarles as the Federal Reserve's regulatory chief, the White House announced.

The nomination to the Fed board, confirmed Monday, was expected. Quarles served in the Treasury Department during both Bush administrations and was a principal in private equity firms Carlyle Group and Cynosure Group.

It marks the first formal nomination ever for the position of Federal Reserve's vice chair of supervision, which was created by the 2010 Dodd-Frank Act. Former Fed Gov. Daniel Tarullo informally filled the job. Quarles is expected to play a leadership role in carving out the authority and responsibility of the title, Politico reported Tuesday.

Quarles has argued against imposing higher capital standards on banks, a position likely to endear him to banks, which have opposed the capital requirements put in place since the financial crisis, TheStreet.com reported Tuesday. It added that stock prices of major banks should improve and consolidation of regional banks is likely to be easier.

The position is regarded as the Trump administration's interpreter of banking regulations, and Quarles' nomination suggests restrictions on banks, written in the Dodd-Frank Act to ease the 2008 financial crisis, will be eased.

Quarles' nomination must still be approved by the U.S. Senate.