Bank of America Corporation (NYSE:BAC) shares are moving higher on Monday, along with other U.S. bank stocks, after the Federal Reserve Board Vice Chair for Supervision Micheal Barr announced will he will step down.

What To Know: Barr's resignation from his vice chair position is set to take effect on Feb. 28, however, he will remain on the Federal Reserve Board as a governor, according to CNBC. His term as governor runs until 2026.

The announcement comes amid speculation that Barr resigned to avoid potential removal by President-elect Donald Trump, who takes office in late January.

While Barr did not explicitly mention Trump in his statement, he said, "The risk of a dispute over the position could be a distraction from our mission. In the current environment, I've determined that I would be more effective in serving the American people from my role as governor."

There is further speculation that Trump aims to replace Barr with someone more bank-friendly. The incoming president will be limited to choosing from the current seven Federal Reserve Board members, as the board is at its cap.

Other bank stocks also trading higher following the announcement, include Goldman Sachs Group, Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS). Goldman stock is trading 1.69% higher at $589.92 and Morgan stock is moving 2.88% higher at $129.57, per data from Benzinga Pro.

Related Link: FlexShopper Shares Jump On Holiday Season Success, Clocks 45% Increase In December New Customer Applications

BAC Price Action: At the time of writing, Bank of America shares are trading 2.05% higher at $45.74, according to data from Benzinga Pro.

Image: Photo via Shutterstock