Topic
Prudential oversight of banks by regulators, covering examinations, ratings, corrective-action orders and escalation to formal enforcement.
Michelle Bowman, the Fed's Vice Chair for Supervision, told a Bangkok audience that other countries should copy her three supervisory changes. She also chairs an FSB committee, so the criticism of Basel and the FSB comes from a member with a seat.
Reality
Fed supervision chief Michelle Bowman's overhaul makes the Board in Washington accountable for ground-level bank supervision that has sat with the 12 reserve banks. How much say those banks' presidents keep over exams in their districts is the open question.
Reality
FDIC Chair Travis Hill laid out a stablecoin proposal pairing 1:1 reserves and two-day redemption with 12 months of liquid expense cover held outside reserves. Holders would get no pass-through deposit insurance, so the reserve and that cushion are all that stands behind a token.
Reality
Fed supervision chief Michelle Bowman is scrapping dozens of internal committees and regrouping bank oversight into five regions drawn on state lines. A parallel plan to raise asset thresholds by as much as 50%, on TD Cowen's estimate, will decide more of what banks pay for supervision.
Reality
Michelle Bowman, the Fed's top supervisor, told community bankers that boards own AI-driven cyber risk and must match their cyber spending to their bank's risk. She gave no dollar benchmark, so the standard will only be as strong as the IT examiners who apply it, and she says their approach is tailored to each bank's risk profile.
Reality
The FDIC, Federal Reserve, OCC and NCUA want examiners looking harder at transparency, contract structure and technology inside core servicing deals. The guidance carrying that expectation is non-binding, with 60 days for comment.
Reality
The Starling Trust Sciences review found Fed supervisors felt safer taking no action, and Bowman's response is a standing report on where examiners were uncertain, visible to leadership in real time. She has not published the review.
Reality
The first report from the Fed's outside review of its own Silicon Valley Bank supervision backs most of what three earlier audits found, but clears the social media posts blamed in 2023 of creating the condition depositors ran from.
Reality
Cornerstone Community Bank had to raise $20 million before it could make a loan, and it took more than 230 shareholders and about $27 million to get there. Lawmakers are now weighing that floor.
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FinCEN's guidance for the 314(b) sharing program now leads with fraud, the statute behind it has not changed, and the roughly 4,500 participating banks and credit unions are relying on a reading no court has tested.
Reality
The OCC and FDIC now want supervisory criticism aimed at risks with material financial impact, which turns process and control weaknesses into informal observations a board can fund, defer or ignore.
Reality