Michael Barr to Step Down as Federal Reserve Vice Chair for Supervision

Michael Barr will step down as Federal Reserve Vice Chair for Supervision on February 28, while remaining a Fed governor. This preemptive move seems aimed at avoiding conflict with the incoming Trump administration. While this change may slow or halt the Basel III Endgame capital requirements proposal, its immediate impact could be limited, as Democrats retain their Fed Board majority until early 2026. Some analysts have observed that this shift highlights the growing politicization of banking regulation, with policies increasingly subject to more dramatic swings between administrations. Trump's options for replacing Barr are limited—likely narrowing to existing Fed governors, such as Michelle Bowman—unless he waits until another seat opens in 2026.  As the new landscape unfolds, SFNet will continue to engage with regulators and law makers in shaping policies in the best interests of our industry.  For more information contact MOcejo@sfnet.com.