Monday's decision by the Federal Reserve's top bank regulator to step down from his job — but not from the Fed entirely — is simultaneously less and more than meets the eye. Why it matters: Michael Barr's self-demotion clears the way for President-elect Trump to appoint a vice chair for supervision.

Michael Barr, the Federal Reserve's vice chair for supervision, announced his early resignation on February 28, clearing the path for President-elect Donald Trump to appoint new bank regulators. Barr's exit allows Trump to pursue a more industry-friendly financial agenda despite ongoing concerns about central bank independence.

Bank stocks rose after Fed Vice Chair Michael Barr stepped down from his banking regulator role. Banks, investors are anticipating more lenient rules