Fed’s Bowman Says Big Banks’ Secret Ratings Will Be Reviewed (1)

Michelle Bowman, the Federal Reserve’s incoming vice chair for supervision, says the central bank will soon address the “odd mismatch” between the confidential ratings of big banks and the lenders’ financial conditions.

Fed data show that two-thirds of the largest US banks were rated unsatisfactory in the first half of 2024, even though most of them met all supervisory expectations for capital and liquidity, Bowman said Friday at a Psaros Center for Financial Markets and Policy event at Georgetown University’s McDonough School of Business.

“This odd mismatch between financial condition and supervisory ratings requires careful review and appropriate ...