According to the Wall Street Journal, Michelle Bowman, who has been nominated to serve as the US Federal Reserve's next Vice Chair for Supervision, plans to review and potentially revise its approach to assigning ratings to large banks.
In a February 2025 speech, Bowman criticized what she sees as a "mismatch" between banks' financial condition and the unsatisfactory ratings issued to two-thirds of the largest institutions last year. Now, in an unusual move, the Fed has delayed its issuance of updated ratings, which it typically shares by March. Critics argue the ratings are overly subjective, especially as they pertain to matters of governance and controls.
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