Earlier this week, US President Donald Trump nominated Federal Reserve Governor Michelle Bowman to serve as Vice Chair for Supervision.
A former community banker and Kansas banking regulator, Bowman has served on the Fed board since 2018. She frequently opposes stricter bank regulations and has advocated for a "pragmatic approach" that fosters innovation. Bowman replaces Michael Barr, who stepped down in February.
Trump expressed confidence in her ability to "achieve economic heights never before seen." Her nomination received praise from banking industry leaders and congressional Republicans. "Since joining the Fed, Governor Bowman has been a thoughtful, principled voice for sensible regulatory and monetary policy and someone who understands the important role that banks of all sizes play in our financial system and our economy," said Rob Nichols, Head of the American Bankers Association.
Bowman has criticized the "Basel III Endgame" rule, which would require big banks to hold more capital. She also supports making bank stress tests more predictable. Before joining the Fed, Bowman held roles in Congress, FEMA, and the Department of Homeland Security. Her nomination signals a shift toward a lighter-touch regulatory approach under the Trump administration.
In an article for our 2024 Compendium, Bowman argued that banking sector overseers should hold themselves to the same high standards of conduct they encourage in the industry — and that they must do so in a manner independent of political pressure and mindful of public accountability.
"Accountability is no less important for bank regulators than it is for banks," Bowman wrote. "Bank regulators serve an important public function, and as we have seen in the past year, the stakes are high. Bank failures and stress in the banking system pose significant risks, not only to the bank customers, depositors, and creditors of a failed bank, but also to the broader financial system, the US economy, and US taxpayers." ▸ Read More
Join The Discussion