Fed’s Bowman calls to ease bank rules

Published 06/06/2025, 15:04
© Reuters.

Investing.com -- The Federal Reserve’s newly confirmed Vice Chair for Supervision, Michelle Bowman, has announced plans to revisit and ease a number of bank rules and oversight policies. Bowman believes that these rules have become burdensome and unnecessary.

Bowman took over as the Fed’s Vice Chair for Supervision on Wednesday and swiftly outlined her intentions to reconsider how the Fed formulates rules and supervises some of the nation’s largest and most intricate banks. This move comes as Bowman believes that the surge of rules since the 2008 financial crisis warrants reevaluation.

In her statement, Bowman clarified that the objective should not be to stop banks from failing or to eradicate the risk of failure. Instead, the goal is to ensure that banks can fail safely, without posing a threat to the stability of the entire banking system.

Bowman, a Fed governor since 2018, has been consistently critical of the push to enforce stricter regulations on the banking sector. In her initial comments as the Fed’s top regulatory official, she announced that the Fed is set to initiate several projects designed to relax requirements and simplify oversight. This includes many areas that have been the subject of long-standing grievances from banks.

These initiatives will involve modifications to how the Fed supervises large banks, plans to make some bank rules less restrictive, and a review of potential changes that could simplify the bank merger process.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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