Is the loose regulatory faction rising to power? Bowman takes office, intensifying the controversy over the "close relationship" between the Federal Reserve and Wall Street

According to the Zhitong Finance APP, on Wednesday, the U.S. Senate approved Michelle Bowman, a Federal Reserve governor, to serve as the Vice Chair for Supervision at the Federal Reserve, further indicating a shift towards looser regulation under President Trump's leadership.

As a fifth-generation banker and a Republican, Bowman has long advocated for more "tailored" regulation in her speeches. Compared to her predecessor Michael Barr, she hinted at a significant change in regulatory focus, with a more friendly relationship with the banking industry. At the same time, Bowman frequently rebuts Barr on issues such as bank regulation, stress test reforms, and capital rules.

It is reported that Bowman stated to Congress members in April that the current regulation is overly complex and redundant. She indicated that if confirmed as Vice Chair for Supervision at the Federal Reserve, she would "prioritize advancing regulatory reform and focusing regulatory priorities, restoring a differentiated regulatory mechanism, ensuring a viable path for innovation in the banking system, and promoting transparency and accountability in regulation."

Bowman has stated that financial regulatory agencies should be more coordinated in their goals for the financial system. According to informed sources, this work has already begun, with U.S. Treasury Secretary Yellen inviting Bowman and other regulatory officials to a private meeting aimed at streamlining regulatory processes. Bowman has also hired advisors from Goldman Sachs, the well-known Wall Street law firm Davis Polk & Wardwell, and the large banking lobbying organization "Bank Policy Institute."

Bowman indicated that she would work with officials from the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) to reintroduce a landmark U.S. bank capital proposal known as "Basel III Endgame." She has harshly criticized the initial draft of this proposal, as it would raise capital requirements for the largest banks by 19% to enhance their risk resilience and prevent financial crises.

She is also collaborating with other regulatory agencies to explore the possibility of adjusting the Supplementary Leverage Ratio (SLR). Critics point out that the current SLR rules restrict banks from purchasing traditionally safer assets like U.S. Treasury bonds. Yellen stated in May that regulatory officials might relax this capital rule this summer.

Dennis Kelleher, president of the consumer advocacy organization Better Markets based in Washington, stated that Bowman's duty is to protect the jobs and savings of ordinary Americans from Wall Street risks. However, he noted, "Unfortunately, Bowman's views are quite the opposite. She claims to care about the economy of ordinary people while steadfastly supporting the banking industry's broad, deep, and blind deregulatory demands."

However, industry organizations like the Independent Community Bankers of America issued statements saying that Bowman has real-world experience that enables her to deeply understand how one-size-fits-all regulatory measures—regardless of a bank's complexity or risk profile—hinder access to funding for those who need credit the most