President Donald Trump yesterday nominated Federal Reserve Governor Michelle Bowman to be the next vice chair for supervision, the lead role in developing policy recommendations for supervising and regulating the banks in the Federal Reserve System. Critical of the lack of “regulatory tailoring”, Bowman would be likely to pursue policies favored by the banking industry, including rolling back capital requirements and ending the need for banks to consider climate-related financial risk. In February, Michael Barr, the outgoing vice chair for supervision, outlined a set of seven risks of concern, including climate-related financial risk in a speech at Georgetown University Law. In response, Elyse Schupak, policy advocate with Public Citizen’s Climate Program, issued the following statement:
“Bowman’s nomination for vice-chair for supervision is a gift to the banking industry. Under her leadership we can expect loosening capital requirements, lax bank supervision, and neglect of emerging risks to the financial system, including from climate change.
“At a moment when insurance markets are driving instability across the country, the potential for a financial crisis driven by climate change has never been higher. The Federal Reserve needs a vice chair for supervision who is attuned to the risks climate change poses to financial stability and is willing to exercise their authority to mitigate these risks both for the financial institutions under the Federal Reserve’s supervision as well as the broader financial system and economy. During her tenure at the Federal Reserve, Bowman has been unwilling to take the steps needed to stem these risks.”
This content originally appeared on Common Dreams and was authored by Newswire Editor.
Newswire Editor | Radio Free (2025-03-18T20:54:00+00:00) Trump Nominates Bowman, Bank Industry Favorite, to be Next Vice Chair for Supervision. Retrieved from https://www.radiofree.org/2025/03/18/trump-nominates-bowman-bank-industry-favorite-to-be-next-vice-chair-for-supervision/
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