Michelle Bowman

Rule Changes

Finalized the stress-test overhaul on September 30

All 32 large banks passed the Federal Reserve's 2026 stress test on June 24, keeping capital above minimums even after $708 billion in projected losses. Their scores did not change how much capital they must hold.

Updated Oct 23

Rule Changes

As of May 2026: Key Fed addressee of Senate Democrats’ demands for private-credit stress testing and stronger safeguards amid leveraged-lending deregulation

In March 2013, U.S. bank regulators issued joint supervisory guidance on leveraged lending to prevent a return of pre-2008-style underwriting excesses, with examiners informally anchoring scrutiny around a roughly six-times-EBITDA leverage benchmark. Over the next decade, banks' pullback shifted riskier deal finance toward private-credit funds, CLOs, and other nonbanks—expanding an opaque "shadow banking" ecosystem even as regulators maintained the guidance was supervisory, not a binding rule.

Updated May 9