U.S. Federal Reserve Core Regulatory Top Officials Step Down at the End of the Year, Will Wall Street Welcome a Loose Regulatory Era?

According to sources, Michael Gibson, the head of the Federal Reserve's regulatory division, is set to retire at the end of the year after over thirty years at the Fed. Gibson joined the Fed in 1992 as an economist and rose to his position under the leadership of former Fed governor Daniel Tarullo after the 2008 financial crisis. Sources said Gibson informed some employees on Friday of his plans to retire from the Fed. A Fed spokesperson declined to comment. After working in the research and international finance departments, Gibson now leads a division responsible for overseeing and monitoring Wall Street lending institutions. This division is in charge of implementing the Fed's stress tests - an annual health check to assess the risk resilience of large banks and determine if they can continue lending during severe economic downturns. As Gibson announces his departure, Michelle Bowman, the Fed's nominee for vice chair of supervision, is awaiting confirmation by the Senate. The Senate Banking Committee plans to vote on her nomination next Tuesday. It is expected that Bowman will have a more relaxed approach to bank regulation compared to her predecessor, Michael Barr, who resigned earlier this year. Bowman has been critical of a landmark capital requirement plan introduced in 2023.