Headline: New York Times, 11/17/2025
The memo, which was reviewed by The New York Times, contained a list of directives for Fed examiners and supervisory staff across the country that significantly curtailed how closely they scrutinized lenders. It followed a host of changes made by Michelle W. Bowman, a Fed governor, who since becoming vice chair for supervision at the start of the summer had been providing regulatory relief to banks. One day after the memo was sent, Ms. Bowman announced a 30 percent cut in staff across her division in Washington.
Current and former policymakers and legal experts were already worried that those changes would encourage exactly the kind of risk-taking that could sow the seeds for the next crisis. But the sweeping nature of the plans outlined in the memo is likely to further fan fears that supervisors will be less equipped to spot such a crisis in advance, risking deeper damage to the economy.
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