Trump Allies Seek to Oust Fed Governor Barr Using SVB Review
N.R. Finch
Trump administration officials are privately discussing whether an external review of the Silicon Valley Bank collapse could provide legal grounds to remove Fed Governor Michael Barr — This means → the Fed's personnel independence faces an entirely new line of attack.
What is this review, and where did it come from?
After SVB collapsed in 2023, current Fed Vice Chair for Supervision Michelle Bowman commissioned an external review by Starling Trust Sciences.
Barr held the top bank-supervision role at the time — Vice Chair for Supervision — making the review's findings directly relevant to his record.
Bowman says she did not direct Starling toward any specific conclusion. The final report is expected before year-end; Barr is cooperating with the review.
Why take such an indirect route?
Last month the Supreme Court blocked Trump's attempt to fire another Fed governor, Lisa Cook, on unsubstantiated mortgage-fraud allegations.
But the Court left a key question open: what exactly constitutes "for cause" removal of a Fed governor remains undefined.
This means → if the review contains critical findings about Barr, allies hope to use them to fill that legal grey zone and build a "for cause" case.
What does the White House say?
A White House official stated the administration does not view the SVB review as a vehicle to remove Barr.
Yet sources say officials and allies are actively assessing whether the report's critical findings could meet the legal threshold.
In plain terms = there is a visible gap between the official line and the behind-the-scenes maneuvering.
What is the larger game behind this?
Trump's newly appointed Fed Chair Kevin Warsh has publicly pledged a "regime change" at the Fed; the team is also still seeking paths to remove Governor Cook and former Chair Powell.
If Barr were successfully ousted, Trump could appoint a majority of the seven-seat Fed Board, gaining far greater leverage over monetary policy and regulation.
This reflects a broader campaign to reshape the Fed — the SVB review is one move in a much larger chess game.
Where is the pushback coming from?
Senate Banking Committee ranking Democrat Elizabeth Warren has publicly questioned the review's political motives and asked the Fed's internal watchdog to investigate the decision to commission it.
Warren's challenge was promptly rebutted by Treasury Secretary Scott Bessent.
This means → the SVB review's final conclusions will become a critical juncture in determining whether Trump can mount a new legal assault on Fed independence.
Content is for reference only, not financial advice.