THE WEIRD OCC PROCESS — Continues to be a bit of a puzzle why the White House has not nominated UC Irvine’s Mehrsa Baradaran. Something is clearly going on but not clear what it is. Via Cap Alpha’s Ian Katz: “There has been no announcement from the White House. Thirty-four members of the Congressional Black Caucus sent a letter to President Biden last week urging him to nominate Baradaran.

“Now it’s being reported that there are other high-profile candidates: Former Deputy Treasury Secretary and Fed Governor Sarah Bloom Raskin; former SEC Commissioner Kara Stein; and Atlanta Fed President Raphael Bostic. All three have been seen as top contenders for prominent administration or regulatory positions. We think Bostic, and perhaps Raskin, would be on a fairly short list of candidates for Fed chair if Jay Powell isn’t back after his current term ends in February 2022.”

EVERYONE WAITS ON THE FED AND THE SLR — Our Victoria Guida: “Federal Reserve Chair Jerome Powell … said the central bank would announce ‘in the coming days’ whether it will extend temporary regulatory aid making it less expensive for banks to hold cash and U.S. government debt on their books — a closely watched decision that’s set to be a market-moving event.

“But the Fed also made another move that suggests the central bank could let that aid expire: giving banks a route to decrease the amount of deposits they have to hold. Expiration of the regulatory rollback would be a victory for Sens. Sherrod Brown (D-Ohio) and Elizabeth Warren (D-Mass.), as well as Rep. Maxine Waters (D-Calif.), who have urged the Fed not to extend it.”

Cap Alpha’s Ian Katz: “The exemption was initially made via a Fed announcement/press release, so we expect the official extension or non-extension to be publicized similarly, not via a press conference.

“Of course, the SLR question is always worth asking Powell or Fed reg czar Randy Quarles, because even a non-committal answer can provide tea leaves or body language to read. But in this case Powell just shut it down. More interesting was the FOMC/New York Fed announcement that’s being viewed in some circles as an indication that the Fed may let the SLR exemption expire.”