Insider: Federal Reserve's Bauman plans to restructure regulatory department and cut 30% of staff.

The Federal Reserve's top banking regulatory official announced plans to restructure the agency's regulatory department and cut about 30% of department staff. According to sources familiar with the matter, Federal Reserve Vice Chair for Supervision Michelle Bowman stated during a meeting with employees on Thursday that the staff reduction will primarily be achieved through natural attrition, retirements, and voluntary separation incentives. A memorandum sent to employees indicated, "She expects that by the end of 2026, the overall staff size of the regulatory and supervision department will be reduced to about 350 people - a decrease of approximately 30% from the previously approved staffing level of nearly 500 people."