US President Donald Trump has appointed Michelle Bowman, a former Kansas banking commissioner, as the new vice chair for supervision at the Federal Reserve. The move comes as part of the Trump administration’s efforts to overhaul the regulatory framework put in place following the 2008 financial crisis.
Bowman will oversee giant US banks and is seen as a key player in shaping the Fed’s approach to bank regulation. Her appointment has been welcomed by industry leaders, who see her as a thought-provoked regulator with a deep understanding of the banking system.
However, Bowman’s views on regulation have been more nuanced than those of her predecessor, Michael Barr, who had proposed increasing capital requirements for lenders. Bowman has argued that such measures could harm the economy and has suggested tailoring capital requirements to a bank’s size and risk profile.
The Trump administration has been critical of the Fed’s regulatory framework, which it sees as too focused on historical failures rather than forward-looking risks. The new executive order gives the White House closer control over the Fed’s oversight of big banks, with monetary policy remaining under the Fed’s full control.
Bowman’s appointment is seen as a significant development in the Trump administration’s efforts to reshape the banking regulatory landscape. With her background in state and federal government, Bowman brings a unique perspective to the role, which will be tested by industry leaders and policymakers alike.
Source: https://finance.yahoo.com/news/trump-names-bowman-as-feds-top-bank-cop-signaling-shift-in-regulatory-stance-201555526.html