If Confirmed, Industry-Friendly Bowman Risks Financial Catastrophe as Fed’s Vice Chair for Supervision
WASHINGTON, D.C. —The Senate Banking Committee will today hold a confirmation hearing for Federal Reserve Governor Michelle Bowman to be the next vice chair for supervision, a role created after the 2008 global financial crisis to enhance the Federal Reserve’s attention to bank safety and soundness and financial stability. Bowman’s nomination comes as the independence of financial regulators, including the Federal Reserve, is under attack by the Trump administration, and numerous risks—including a climate change-driven affordability crisis in homeowners insurance—threatens the financial system and economy.
In response, Elyse Schupak, policy advocate with Public Citizen’s Climate Program, issued the following statement:
“The next vice chair for supervision must work on behalf of the American people—ensuring bank safety and soundness and promoting stability in the financial system—to protect Americans’ financial wellbeing and the economy writ large from excessive Wall Street risk taking and its consequences. Governor Bowman’s record raises serious concerns about her suitability for the role.
“Governor Bowman has opposed efforts to increase bank capital requirements and make the U.S. financial system more resilient to shocks—aligning with the largest banks to oppose the Basel III Endgame proposal. Even as climate disasters have become more visible, frequent, and severe, Governor Bowman voted against guidance requiring banks to consider climate-related financial risk in their risk management frameworks.
“Banks should not be picking their regulator, yet Governor Bowman is the banking industry’s top choice for the role. As Trump undermines the entire U.S. economy, installing a regulator friendly to industry could have catastrophic consequences for an economy stressed to a breaking point. Senators considering her nomination must prioritize responsible risk management in our increasingly threatened financial system over the interests of the banking industry.”
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