Sen. Elizabeth Warren (D-Mass.) and other Democrats are demanding that the Federal Reserve turn over information on recent changes to its bank supervision division following a media report that Fed staff are unhappy with those changes, the Wall Street Journal reported.
The newspaper reported in January that former and current staff have expressed concerns about the leadership of Fed Vice Chair for Supervision Michelle Bowman, who has slashed staff and directed supervisors to focus on core financial risks. In a letter to the Fed written in response to the report, the lawmakers were particularly critical of allegations that Bowman removed bank examiners at the request of banks.
“It is critical that examiners be allowed to evaluate banks’ safety and soundness and their compliance with applicable laws and regulations without fear or favor,” the letter said.
In a separate letter, several lawmakers also requested details about Bowman’s plans to an outside consultant, Starling Trust Sciences, to review Silicon Valley Bank’s 2023 failure, the Wall Street Journal reported. They are seeking information about the cost of the review and the process for selecting the firm.
