Randal Quarles
Encyclopedia
Randal Keith Quarles is a managing director at The Carlyle Group, one of the world’s largest private equity firms. From August 2001 until October 2006, he held several important financial policy posts in the George W. Bush administration
, ultimately serving as Under Secretary of the Treasury for Domestic Finance. As Under Secretary, he was the lead advocate for imposing greater regulation on Fannie Mae and Freddie Mac, arguing that they posed significant risk to the financial sector, and argued for fundamental reform of the entire financial regulatory system—extending broader and more uniform federal regulation to investment banks and insurance companies—because the current system restricted regulators ability to observe and limit risk in the system. In his earlier positions in the administration he had a key role in response to several international crises—the Argentine debt default, as well as near defaults in Brazil
, Turkey and Uruguay
—and chaired the international working group that led to changes in the terms of sovereign debt finance that now permit collective action by creditors in such crises. He also argued strongly for improving international coordination of financial regulation
, initiating a regular dialogue with the European Union on financial regulatory matters and representing the United States at the Financial Stability Forum. He negotiated the historic debt relief agreement for the world's poorest countries reached at the G7 Meetings in London during 2005. In prior government service, he was an important member of the team developing the government's response to the savings and loan crisis
of the late 1980s and early 1990s. At the time of his departure from government, Hank Paulson, the Treasury Secretary, noted that he had "played a major role in an unusually broad range of matters – from the Argentine debt default to terrorism risk insurance, and from Chinese currency flexibility to GSE reform."
in New York City. After completing his college education at Columbia, where he graduated with the highest possible honors, he entered Yale Law School
and graduated in 1984.
. He spent most of his career there in the New York office but worked in the London office from 1987 to 1989. He specialized in financial institutions law, eventually becoming co-head of the firm's Financial Institutions Group and advising on transactions that included a number of the largest financial sector mergers ever completed.
, Treasury Secretary under George H. W. Bush
, asked Quarles to join a team working to develop the governmental response to the savings and loan crisis in the financial sector and to propose improvements for the financial regulatory system going forward. Quarles served in the first Bush administration as Special Assistant to the Secretary of the Treasury for Banking Legislation and as Deputy Assistant Secretary of the Treasury for Financial Institutions Policy, returning to Davis Polk in January 1993.
As Under Secretary, Quarles led the Department’s activities in financial sector and capital markets policy, including coordination of the President’s Working Group on Financial Markets, development of administration policy on hedge funds and derivatives, regulatory reform of Fannie Mae and Freddie Mac, and proposing fundamental reform of the U.S. financial regulatory structure.
From April 2002 until August 2005, Quarles was Assistant Secretary of the Treasury for International Affairs. Quarles had a leading role in issues ranging from Chinese currency policy to the Argentine debt default, and from Iraqi and Afghan economic reconstruction to the reform of collective action in sovereign debt agreements. In addition, Quarles was the policy chair of the Committee on Foreign Investment in the United States, which reviews potential investments that raise national security issues, and negotiated the historic debt relief agreement for the world's poorest countries reached at the G7 meetings in London in 2005.
From August 2001 until April 2002, Quarles was the U.S. Executive Director of the International Monetary Fund
, where he represented the United States in negotiations over the IMF’s response to financial crises in Argentina and Turkey.
, the leading private equity firm, to help the firm develop a focus on transactions in the financial services sector. There he works with a group that includes Oliver Sarkozy, the former head of the financial institutions group at UBS
and brother of the president of France.
George W. Bush administration
The presidency of George W. Bush began on January 20, 2001, when he was inaugurated as the 43rd President of the United States of America. The oldest son of former president George H. W. Bush, George W...
, ultimately serving as Under Secretary of the Treasury for Domestic Finance. As Under Secretary, he was the lead advocate for imposing greater regulation on Fannie Mae and Freddie Mac, arguing that they posed significant risk to the financial sector, and argued for fundamental reform of the entire financial regulatory system—extending broader and more uniform federal regulation to investment banks and insurance companies—because the current system restricted regulators ability to observe and limit risk in the system. In his earlier positions in the administration he had a key role in response to several international crises—the Argentine debt default, as well as near defaults in Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Turkey and Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
—and chaired the international working group that led to changes in the terms of sovereign debt finance that now permit collective action by creditors in such crises. He also argued strongly for improving international coordination of financial regulation
Financial regulation
Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system...
, initiating a regular dialogue with the European Union on financial regulatory matters and representing the United States at the Financial Stability Forum. He negotiated the historic debt relief agreement for the world's poorest countries reached at the G7 Meetings in London during 2005. In prior government service, he was an important member of the team developing the government's response to the savings and loan crisis
Savings and Loan crisis
The savings and loan crisis of the 1980s and 1990s was the failure of about 747 out of the 3,234 savings and loan associations in the United States...
of the late 1980s and early 1990s. At the time of his departure from government, Hank Paulson, the Treasury Secretary, noted that he had "played a major role in an unusually broad range of matters – from the Argentine debt default to terrorism risk insurance, and from Chinese currency flexibility to GSE reform."
Early life
Quarles was raised in Utah, and came east as a teenager to study philosophy and economics at Columbia UniversityColumbia University
Columbia University in the City of New York is a private, Ivy League university in Manhattan, New York City. Columbia is the oldest institution of higher learning in the state of New York, the fifth oldest in the United States, and one of the country's nine Colonial Colleges founded before the...
in New York City. After completing his college education at Columbia, where he graduated with the highest possible honors, he entered Yale Law School
Yale Law School
Yale Law School, or YLS, is the law school of Yale University in New Haven, Connecticut, United States. Established in 1824, it offers the J.D., LL.M., J.S.D. and M.S.L. degrees in law. It also hosts visiting scholars, visiting researchers and a number of legal research centers...
and graduated in 1984.
Early career
Upon graduation from Yale, Quarles was hired as an associate at the Wall Street law firm of Davis Polk & WardwellDavis Polk & Wardwell
Davis Polk & Wardwell LLP is an international law firm. The firm employs more than 800 attorneys worldwide and is headquartered in New York City. The firm represents many of the world's largest companies and leading financial institutions, and is best known for its corporate and litigation...
. He spent most of his career there in the New York office but worked in the London office from 1987 to 1989. He specialized in financial institutions law, eventually becoming co-head of the firm's Financial Institutions Group and advising on transactions that included a number of the largest financial sector mergers ever completed.
George H.W. Bush Administration
In 1990, Nicholas BradyNicholas F. Brady
Nicholas Frederick Brady was United States Secretary of the Treasury under Presidents Ronald Reagan and George H. W. Bush, and is also known for articulating the Brady Plan in March 1989.-Early life:...
, Treasury Secretary under George H. W. Bush
George H. W. Bush
George Herbert Walker Bush is an American politician who served as the 41st President of the United States . He had previously served as the 43rd Vice President of the United States , a congressman, an ambassador, and Director of Central Intelligence.Bush was born in Milton, Massachusetts, to...
, asked Quarles to join a team working to develop the governmental response to the savings and loan crisis in the financial sector and to propose improvements for the financial regulatory system going forward. Quarles served in the first Bush administration as Special Assistant to the Secretary of the Treasury for Banking Legislation and as Deputy Assistant Secretary of the Treasury for Financial Institutions Policy, returning to Davis Polk in January 1993.
George W. Bush Administration
In 2001, Secretary Paul O'Neill asked Quarles to return to the Treasury, where he served until the mid-term elections in 2006. At the Treasury, Quarles was a senior official under all three of George W. Bush’s Treasury Secretaries and developed policy on an unusually broad range of matters in both domestic and international financial affairs.As Under Secretary, Quarles led the Department’s activities in financial sector and capital markets policy, including coordination of the President’s Working Group on Financial Markets, development of administration policy on hedge funds and derivatives, regulatory reform of Fannie Mae and Freddie Mac, and proposing fundamental reform of the U.S. financial regulatory structure.
From April 2002 until August 2005, Quarles was Assistant Secretary of the Treasury for International Affairs. Quarles had a leading role in issues ranging from Chinese currency policy to the Argentine debt default, and from Iraqi and Afghan economic reconstruction to the reform of collective action in sovereign debt agreements. In addition, Quarles was the policy chair of the Committee on Foreign Investment in the United States, which reviews potential investments that raise national security issues, and negotiated the historic debt relief agreement for the world's poorest countries reached at the G7 meetings in London in 2005.
From August 2001 until April 2002, Quarles was the U.S. Executive Director of the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
, where he represented the United States in negotiations over the IMF’s response to financial crises in Argentina and Turkey.
Carlyle group
After his departure from the Treasury, Quarles joined the Carlyle GroupCarlyle Group
The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington, D.C. The Carlyle Group operates in four business areas: corporate private equity, real assets, market strategies and fund-of-funds, through its AlpInvest subsidiary...
, the leading private equity firm, to help the firm develop a focus on transactions in the financial services sector. There he works with a group that includes Oliver Sarkozy, the former head of the financial institutions group at UBS
UBS AG
UBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
and brother of the president of France.