Archive · 26 Jan 2026
Fed's Bowman Overhauls Bank Oversight Amid Tensions
Michelle Bowman, a former banker and current vice chair for supervision at the Federal Reserve, is making big changes to how banks are checked for safety.
She wants to make the process easier for banks and more transparent.
Some people at the Fed are unhappy because they think she is being too soft on banks.
Bowman is also cutting jobs and changing the rules for how banks are examined.
Some people are worried that these changes might make it harder for the Fed to catch problems before they become big issues.
Bowman believes these changes are necessary to make the financial system work better.
Michelle Bowman, Fed's vice chair for supervision, is overhauling bank oversight to ease the burden on banks and make the exam process more transparent.
Bowman has slashed staff and is seeking a 30% reduction in the supervision and regulation division, offering voluntary buyouts to employees.
She has ordered a fresh review of the 2023 failure of Silicon Valley Bank, criticizing the previous internal postmortem as inadequate.
Some Fed examiners and former officials have expressed concerns about the changes, fearing a hollowing out of the regulator and potential difficulties in identifying emerging risks.
Bowman's reforms include setting stricter guidelines for citing banks for problems and allowing banks to more easily contest examiner findings.
- Who
- Michelle Bowman, Fed's vice chair for supervision
- What
- Overhauling bank oversight, reducing staff, and changing regulatory practices
- When
- Recent months, with significant changes since Bowman's appointment
- Where
- Federal Reserve, primarily in Washington, D.C.
- Why
- To ease the burden on banks, make the exam process more transparent and fair, and reverse regulatory excesses post-2008 financial crisis
- Michelle Bowman
- Fed's vice chair for supervision, former banker from Kansas
- Fed's Supervision Division
- Oversees banking exams to ensure financial stability
- Regulatory Changes
- Aims to make exam process more transparent and fair for banks
- Staff Reductions
- Seeking 30% reduction in supervision and regulation staff
- Silicon Valley Bank
- Bowman ordered a fresh review of its 2023 failure
- Criticism
- Concerns raised about hollowing out of the regulator and identifying emerging risks
- Bowman's Background
- Family owns a farm, ranch, and a small-town bank
- Fed's Independence
- Under scrutiny due to Trump's pressure and criminal investigation into Powell's testimony