Federal Reserve vice-chair for supervision Michelle Bowman plans to restructure the central bank’s supervision and regulation division, reducing its workforce by around 30 per cent, according to an internal email sent to staff on Thursday.
“She expects [the division] to have a smaller overall footprint of roughly 350 employees — a reduction of approximately 30 per cent from the previous authorised headcount of nearly 500 employees — by year-end 2026,” said the email, which was first reported by Bloomberg.
The cuts will occur through natural attrition, retirements and voluntary separations, Bloomberg’s report added, citing people familiar with the matter.
The restructuring comes as the Fed and other US regulators move to ease certain bank capital requirements and forms part of the regulator’s wider plan to cut its total workforce by about 10 per cent over the next two years.
Spain to cede bank merger oversight to ECB after EU criticism
Spain’s ministry of economy will hand over certain banking supervisory powers to the European Central Bank and the Bank of Spain, following EU criticism of its efforts to hinder BBVA’s failed takeover bid for its smaller domestic rival Banco Sabadell.
An economy ministry spokesperson said on Thursday the transfer would include oversight of mergers and acquisitions, and would take place when Spain implements the EU’s new capital requirements directive by January 2026, Reuters reported.
The move comes after Brussels opened an infringement procedure in July, arguing that Madrid’s discretionary powers over bank mergers amounted to unjustified restrictions on the free movement of capital.
The European Commission will now review Spain’s response before deciding whether to escalate the case.
Goldman’s Solomon warns of US economic ‘reckoning’ without higher growth
Goldman Sachs chief executive David Solomon has warned that the US risks an economic “reckoning” unless growth accelerates to offset the country’s mounting debt burden.
“If we continue on the current course and we don’t take the growth level up, there will be a reckoning,” Solomon said during an interview with Bloomberg TV at The Economic Club of Washington DC on Thursday. “The path out is a growth path.” He added that the likelihood of a near-term recession remains “low”.
Solomon said the US as well as other western economies had become reliant on debt-driven stimulus, particularly following pandemic-era fiscal measures that boosted consumer spending.
“Fiscal stimulus and an aggressive fiscal play is really just embedded in the way these democratic economies are operating,” he said, adding that the trend had “accelerated meaningfully in the last five years”.
ANZ warns of A$1.1bn hit to second-half profit from one-off charges
Australia’s ANZ Group warned on Friday that its second-half earnings will be reduced by A$1.1bn ($720mn) due to numerous one-off charges linked to matters including regulatory settlements and restructuring costs.
The charges include A$585mn in redundancy costs, A$271mn for a settlement with the country’s securities regulator and expenses linked to the integration of Suncorp Bank. ANZ also booked a A$285mn impairment on its investment in Indonesia’s PT Bank Panin.
The bank said the impact of the one-off charges will trim its common equity Tier 1 capital ratio by 19 basis points. ANZ’s results are due to be released on November 10.
Chief executive Nuno Matos, who took up the role five months ago, has paused a share buyback, cut thousands of jobs and promised to refocus on core lending and business banking.
He recently outlined a five-year restructuring plan centred on efficiency, improved risk controls and stronger growth in mortgage lending.