Compliance Risk

Small Business Bank in Kansas failed on Friday, the second failure in a week and the fourth failure overall in 2026.

Russell Vought, the acting director of the Consumer Financial Protection Bureau, will testify Wednesday before the Housing Financial Services Committee, three weeks before his tenure as acting director ends.

The failure of Kentland Federal Savings and Loan, the nation's smallest standalone bank at $3.7 million of assets, will cause an estimated $1.2 million hit to the deposit insurance fund, according to the Federal Deposit Insurance Corp. Kentland's failure is the third bank failure in 2026.

The Wyoming digital asset bank is requesting that the high court review previous decisions granting the central bank 'unbounded, unreviewable discretion' in light of its recent Cook and Slaughter rulings. A decision could impact how cryptocurrency intersects with the standard banking system.

Trump has until midnight tonight to either sign or veto the housing bill; if he does neither, it automatically becomes law.

As the deadline for President Donald Trump to sign or veto a housing package looms, hanging in the balance is a reciprocal deposit provision that would give small banks more room to compete for large corporate and municipal depositors.

The Federal Reserve ordered TS Banking Group to shore up capital at two of its community banks, one of which is already under an enforcement action from the Office of the Comptroller of the Currency.

Counter to prevailing narratives about rules and enforcement activity whipsawing from one administration to the next, public citations by federal banking regulators have steadily declined over the past decade — under both Democratic and Republican administrations.

The proposal calls for banks to make their compliance programs "risk-based" and pledges to emphasize "systemic" flaws with anti-money-laundering programs rather than "isolated" shortcomings.

Federal Reserve Vice Chair for Supervision Michelle Bowman said in a speech Tuesday morning that she is working with other regulators around the world to emphasize innovation in the banking sector, including with artificial intelligence.

The Federal Reserve issued a "prompt corrective action" enforcement action against Kansas-based Small Business Bank, the third enforcement action against the bank since 2023.

The French bank was one of several international firms caught rigging foreign exchange markets in the late 2000s and early 2010s.

During his first overseas speaking event since taking over as chairman of the Federal Reserve, Kevin Warsh found common cause with other central bankers in his push for more restrained communications and forward guidance to markets.

The Federal Deposit Insurance Corp. says executives "gambled" with depositor funds, while the former parent company argues regulators are using hindsight to second-guess what were reasonable business decisions at the time.

Senate Banking Committee ranking member Elizabeth Warren, D-Mass., said the National Credit Union Administration's efforts to roll back 31 rules without a board quorum could jeopardize the credit union system's stability and legitimacy.

JPMorganChase and Bank of America raised concerns about the proposed removal of risk-weighted assets from the denominator of the short-term wholesale funding component of the GSIB surcharge — changes backed by Goldman Sachs and Morgan Stanley.

Federal Reserve Vice Chair for Supervision Michelle Bowman said Thursday morning that the central bank recently finalized a new organizational structure for its supervision and regulation division.

The nation's largest banks saw their aggregate capital levels decline the least since the stress testing regime was reformed in 2020. Even so, the Fed will keep stress capital buffers unchanged as it weighs structural changes to its annual capital test.

Tech companies may be the biggest winners of a custodial deposit provision tucked away in a much-touted bipartisan housing bill set to become law this week.