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Fed Governor Warns Weak Oversight Threatens Financial Stability

11/19/2025

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Story summary
  • Federal Reserve Governor Michael Barr warned that weakening banking supervision could pose significant risks to the financial system.
  • Speaking at American University, he called for a robust regulatory framework to prevent excessive risk-taking.
  • Barr said effective supervision is crucial for financial stability and reducing systemic risk.
  • He warned of diminishing oversight and proposed changes that could undermine supervisory practices.