President Donald Trump on Monday nominated Michelle Bowman to oversee the Federal Reserve’s financial regulatory efforts, a move that could lead to looser rules for large banks.
Bowman was appointed by Trump in 2018 to serve on the Fed’s governing board. She replaces Michael Barr as the Fed’s Vice Chair for Supervision, after Barr stepped down last month to avoid a legal fight that could have ensued had Trump carried out his threat to fire him. Barr, however, stayed on the seven-member Fed board, forcing Trump to pick from one of the existing governors.
Her nomination was welcomed by banking industry lobbying groups, including the American Bankers Association and the Independent Community Bankers of America.
As Vice Chair, Bowman will be the most powerful federal bank regulator, and will coordinate with the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency on developing bank rules.
The position requires Senate confirmation, though analysts expect she’ll easily be confirmed.
Bowman voted against a 2023 proposal by Barr to tighten rules on big banks such as JPMorgan Chase and Bank of America, in particular to require them to hold more capital in reserve to offset potential losses. The proposed rule attracted fierce opposition from the financial industry, but also from some nonprofit organizations concerned that it could have limited mortgage lending.
Prior to joining the Fed, Bowman was the state bank commissioner in Kanas in 2017-2018, after serving as vice president at a local bank. She also had previous stints in Washington working for Senator Bob Dole, a Kansas Republican, and at the Federal Emergency Management Agency and the Department of Homeland Security.
