'FAILURE OF SUPERVISION': Fed insider delivers BLUNT verdict on SVB collapse

Fed Vice Chair for Supervision Michelle Bowman signaled potential easing of bank capital rules and flagged rising risks from private credit, increased AI investment and global geopolitical tensions. She also discussed the Fed's outlook on economic growth, conveying a cautious stance that could affect bank regulatory policy and sector risk pricing.

Analysis

Fed Vice Chair for Supervision Michelle Bowman signaled potential easing of bank capital rules and flagged rising risks from private credit, increased AI investment and global geopolitical tensions. She also discussed the Fed's outlook on economic growth, conveying a cautious stance that could affect bank regulatory policy and sector risk pricing.