10:09 - 7.06.2026

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June 7, Fineko/abc.az. Federal Reserve Board Governor Michael Barr has sharply criticized recent regulatory proposals aimed at loosening oversight for US banking institutions.

ABC.AZ reports that Barr warned these measures "significantly weaken bank regulation and supervision." He emphasized that while the vulnerabilities caused by deregulation might not be visible today, they will compound over the coming years, potentially causing severe damage to the broader economy.

The warnings follow structural changes aimed at lowering the capital buffers that Wall Street banks must hold and narrowing supervisory scopes. Barr pointed out that weaker capital and liquidity requirements elevate stress risks within the financial system. He concluded that since bank failures directly threaten businesses and households, banking regulators must take immediate steps to mitigate these underlying structural fragilities.