Barr Worries Less Fed Supervision May Let Risks Build

Federal Reserve Governor Michael Barr warns that weakening the agency’s supervision may lead to “real dangers” that accumulate in the banking system. Barr also added that moves to “scale back examiner coverage, dilute ratings systems, and to redefine a long-held standard of ‘unsafe and unsound’” practices by banks will make it harder for examiners to act before it is too late. He spoke Tuesday at the Kogod School of Business at American University in Washington. (Source: Bloomberg)