Goldman Sachs CEO Disagrees with Fed Governor on Bank Regulation Rollback

Disagreement on Regulatory Rollback

• 🎯 David Solomon of Goldman Sachs explicitly disagrees with Fed Governor Michael Barr's assessment that rolling back bank supervision is unsafe.
• 💡 Solomon believes Barr's comments reflect a rollback of Barr's own previous agenda and argues against it.

Framework for Supervisory Practices

• 📄 Solomon references a memo by Mary Aiken, under Vice Chair of Supervision Mickey Bowman, outlining a framework for supervisory practices.
• 🔍 This memo reportedly highlights how supervisory reach had expanded into processes unrelated to safety and soundness.

Focus on Safety and Soundness

• 🔑 Solomon argues that the current regulatory framework, under Bowman's team, is focusing on risk issues that matter for the safety and soundness of institutions.
• 💰 He believes that forcing organizations to employ thousands for documentation unrelated to safety and soundness is unnecessary and inefficient.
• 🚀 Rolling back these expansive practices frees up resources and capital for business growth, according to Solomon.
• ⚠️ He emphasizes the continued importance of being a risk manager and focusing on the safety and soundness of financial institutions.