Story perspectives

Fed Governor: Deregulation Cuts $60B Capital, Sparks $2.6T Risk

6/7/2026

47 8

Summary

Story summary

Federal Reserve Governor Michael S. Barr warned June 6, 2026 that recent deregulation threatens banking safety.
He said the Fed cut capital requirements for the eight biggest banks by 6 percent, removing $60 billion of loss-absorbing capital and easing stress tests, leverage ratios and Basel III rules.
He warned that $2.6 trillion of credit commitments in late-2025 create tight interconnections that could spread stress quickly, urging regulators to keep solid capital and stable funding.

1 of 1

Story summary

Federal Reserve Governor Michael S. Barr warned June 6, 2026 that recent deregulation threatens banking safety.
He said the Fed cut capital requirements for the eight biggest banks by 6 percent, removing $60 billion of loss-absorbing capital and easing stress tests, leverage ratios and Basel III rules.
He warned that $2.6 trillion of credit commitments in late-2025 create tight interconnections that could spread stress quickly, urging regulators to keep solid capital and stable funding.