President Trump appointed banking regulator

Source: Office of the Comptroller of the Currency

President Donald Trump has officially appointed Brian Brooks to take the helm of a major banking regulator, which could force Joe Biden to fire him after the president-elect is sworn in.

In a brief statement on Friday, the White House said it sent the candidacy to the Senate, where Senate Banking Committee Chairman Mike Crapo already had it. reported that Brooks would get a confirmation hearing for a five-year term as head of the Office of the Comptroller of the Currency. Brooks has been the interim OCC chief since May.

Trump’s highly unusual move to try and install an industry-friendly watchdog at the end of his administration has been criticized by Democratic lawmakers, who argue the president refuses to accept the election results of this month.

If Crapo, an Idaho Republican, is successful in speeding up Brook’s confirmation, then Biden would have to decide whether to remove him after the January 20 inauguration. Although the law says Biden can oust Brooks, such authority has never been used before. Biden’s acting Treasury Secretary could immediately impeach Brooks if he fails to secure Senate approval.

Most of the major US bank regulations are drafted and approved in conjunction with the Federal Reserve, Federal Deposit Insurance Corp. and OCC. Since those Trump appointees are expected to continue running the other two agencies for some time, the OCC would be in a key position to begin implementing Biden’s agenda for the banks.

Brooks is racing to complete a a rule that would prohibit banks from refusing to lend to companies that involve political risk, such as borrowers linked to oil exploration, guns and private prisons. The public comment period for the proposal ends on January 4, giving Brooks a few days to finalize the settlement before Biden’s inauguration.