Federal Reserve Vice Chair for Supervision Michael Barr has cautioned against weakening bank rules and oversight, warning that it could make firms vulnerable to surprise shocks. In his final speech as the Fed’s rules chief, Barr emphasized the need for strong rules and robust capital requirements to protect against unforeseen risks.
Barr urged regulators to complete implementing “Basel III Endgame” capital rules, which are part of a global regulatory agreement, to avoid disadvantaging US banks. He also warned against further weakening of the annual stress test of large banks, citing concerns over transparency and subjectivity.
The Fed’s efforts to reduce regulatory burden are ongoing, with the Trump administration prioritizing trimming regulations to spur economic growth. However, it remains unclear how far Barr’s warnings will carry, as a replacement for his position has yet to be named.
Source: https://finance.yahoo.com/news/feds-barr-stepping-down-regulatory-193717008.html