Fed’s Barr Warns of Risks Tied to Looser Wall Street Bank Rules

Federal Reserve Governor Michael Barr criticized moves from regulators over the past year to relax the rules for US lenders, saying the proposals “considerably weaken bank regulation and supervision.”

“I believe that recent steps by the Federal Reserve and other agencies will undermine the safety and soundness of banks and increase financial stability risks,” Barr said in prepared remarks Saturday. “Vulnerabilities that result from deregulation may not be apparent today, but they will result in problems that will build over the coming years and could threaten serious harm to the economy.”