KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
US Federal Reserve Vice Chair for Supervision Michelle Bowman is planning a major restructuring of the Fed’s supervision and regulation division, which oversees the nation’s largest banks, according to an internal email obtained by Reuters.
30% Staff Reduction Planned
The plan calls for a 30% reduction in staff within the supervisory unit, achieved through attrition, retirements, and voluntary separation incentives, the email said. The reorganisation is aimed at streamlining operations and aligning with a broader government downsizing initiative under President Donald Trump’s administration.
Part of a Broader Fed Workforce Cut
Earlier this year, the Fed said it intends to shrink its total workforce by around 10% over the next few years from its current headcount of roughly 24,000 employees.
Chair Jerome Powell has directed leadership to identify “incremental” ways to improve efficiency and reduce costs across the central bank’s various departments.
Regulatory Impact
The move marks the most significant personnel reduction in the Fed’s bank supervision arm in years. The unit plays a key role in overseeing systemically important financial institutions (SIFIs) and ensuring compliance with capital and liquidity requirements.
Bowman, who has often expressed concerns about regulatory overreach, is seen as steering the division toward a leaner, more risk-focused supervision framework that prioritizes efficiency and transparency.
Investor Takeaway
The planned cuts could signal a lighter regulatory touch for US banks, particularly amid calls from industry leaders for regulatory relief following years of tightened oversight.
However, some analysts caution that reduced staffing may also slow examination timelines and limit enforcement capacity, potentially raising systemic risk concerns if financial conditions deteriorate.
The reorganization reflects a broader shift at the Fed toward operational streamlining and decentralization, consistent with Trump-era efforts to scale back federal oversight and reduce bureaucracy.
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