His decision to step down was fueled, in part, by the fact that a “risk of a dispute over the position” could be a distraction from the Fed’s mission of supervision and regulation of the financial system,

Michael Barr, vice chair for supervision for the Federal Reserve and the leader of the U.S. effort behind the so-called Basel III endgame proposal to lift capital requirements for banks, said he would step down by Feb. 28, or sooner if a successor is named.

The Federal Reserve's top financial regulator said Monday that he would resign next month, avoiding a potential confrontation with the incoming Trump administration and Republicans in the Senate. Fed governor Michael Barr said in a letter to President Joe Biden that he would step down as vice chair for supervision Feb.