Fed’s Barr Gives Warning on Risks a Week Before Leaving Role

The Federal Reserve’s top bank cop, Michael Barr, implored regulators to stay vigilant about risks to the financial system as he gets ready to step down from his role as vice chair for supervision while remaining on the Board of Governors.

Barr stressed the need for focus on issues like climate risk and the nonbank sector while underscoring the importance of maintaining the credibility of stress tests and supervision. He also emphasized that capital requirements should be aligned with risks.