Regulation

The three megabanks will see their surcharges rise by 50 basis points, according to a new analysis of regulatory data. The Federal Reserve assesses the levies as a way to compensate for the impact that the collapse of a global systemically important bank would have on the financial system.

The Canadian banking giant reached a five-year deal with community groups that includes $40 billion in investments to underserved groups. BMO aims to close its acquisition of San Francisco-based Bank of the West before the end of the year.

Citi was the only bank cited in the agencies' biennial review of living wills for the eight largest U.S. banks.

In the House of Representatives, Rep. Patrick McHenry wants to push regulators and bank CEOs on their ESG investments, but the real action is happening at the state level.

The growing anti-ESG backlash from Republican lawmakers may please the base, but as a practical policy it creates far more problems than it solves.

Banks are underwater on many bonds they bought before interest rates began their sharp rise. The impact has been wide-ranging — decreasing the industry's interest in stock buybacks, dampening the appetite for M&A and raising concerns about some smaller institutions' ability to borrow from the Federal Home Loan banks.

If a $6.3 billion subsidy only generates a $304 million return in terms of housing and community development support, is that money well spent?