President Trump has named former banking attorney Bimal Patel to lead the day-to-day operations of the Financial Stability Oversight Council (FSOC). Patel will serve as deputy assistant treasury secretary for the council, which is responsible for overseeing risks in the financial system. Trump in April ordered a review of the council, which was created by the Dodd-Frank Act—a frequent target of criticism by Trump, who has characterized the law as a prime example of overly restrictive financial regulation.
Patel most recently headed the financial advisory and regulation practice of O’Melveny & Myers LLP. Prior to that, he served on the staff of former Federal Deposit Insurance Corp. board member Jeremiah Norton. In his new role with the FSOC, Patel will have a significant say in the priorities and focus of the 12-member council, which is responsible for designating firms that could pose a risk to the financial system as “too big to fail.” Such firms are subject to more stringent capital and other requirements, and are overseen by the Federal Reserve. Republican lawmakers have called for the council to be stripped of the power to so designate firms. Trump signed an order last month calling for a review of FSOC’s designation powers and other aspects of its operations.