Preamble to the 2025 Compendium
Starling's 2025 Compendium will be released Monday, June 23rd at noon ET. As a preview, we are excited to share Francis Fukuyama's Preamble to the report.
Fukuyama argues that trust—embodied in social capital—is the lubricant of modern economies and democratic governance. Its steady erosion in the United States, marked by rising polarization and conspiratorial disinformation, threatens economic dynamism and institutional legitimacy. Restoring trust demands transparent, fair institutions and a citizenry committed to reciprocity and moderation.
US Fed's Bowman Outlines Supervisory Agenda
In her first public remarks as the US Federal Reserve Board's Vice Chair for Supervision last week, Michelle Bowman outlined a broad agenda for revisiting key aspects of the supervisory and regulatory framework, emphasizing pragmatism, tailoring, and a sharper focus on material financial risks.
Challenges with Supervision
Last year’s bank failures left many asking, "Where were the supervisors?" Warning signs may be obvious in hindsight, but only serve to demonstrate that current oversight is overly reliant on supervisory judgement. So long as culture and risk governance remain a matter of subjective judgement, regulators and firms will remain challenged in deciding when intervention is necessary.
