Politics

President Trump's tariff regime and resulting price shocks may put additional pressure on small banks, requiring an already undermanned Federal Deposit Insurance Corp. to turn to assisted M&A deals to resolve failed banks, accelerating consolidation in the industry.

The Office of the Comptroller of the Currency says it's still reviewing compromised emails and attachments after hackers gained access to the regulator for over a year and has not ruled out exposure of customer or supervisory data.

The agency is seeking input on how to better open up industries up to new entrants. Some see this opening the door to more competition for banks.

In a settlement with bank trade groups that sued the Consumer Financial Protection Bureau, the Trump administration has agreed to drop the credit card late fee rule with prejudice.

Federal Reserve Board member Christopher Waller said he would not be deterred from classifying inflation as "transitory" despite the board's recent experience underestimating inflationary pressures.

Acting Consumer Financial Protection Bureau Director Russell Vought also directed that future guidance not use the words "shall," "must," "required" or "requirement" to direct parties outside the federal government, except when restating clear legal mandates. 

A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit narrowed a lower court's injunction barring the termination of Consumer Financial Protection Bureau employees but maintained restrictions on mass firings.

Two recent executive orders could speed up the administration's push to rollback regulations, but they also change the notice-and-comment rulemaking process.

The Consumer Financial Protection Bureau said it will not enforce or supervise nonbank financial firms that miss upcoming compliance deadlines for the nonbank registry of repeat offenders.

A bill being introduced by Sen. Catherine Cortez Masto, D-Nev., would compel the Federal Home Loan Bank System to contribute 30%, or a minimum of $200 million, of each bank's net earnings into affordable housing or other community development programs.

The National Federation of Independent Business calls on the Treasury to delete beneficial ownership data collected under a now-paused rule, citing privacy risks and small-business burdens.

A Department of Government Efficiency team is working with FDIC leadership to "increase efficiency," which could include cuts to contracts and streamlining staff. FDIC says DOGE staffers have "appropriate clearances."

Versions of the bill were introduced in the House and Senate, raising odds that a national trigger lead ban could be near.

Federal Reserve Bank of Chicago President Austan Goolsbee said to understand how banks are faring in the current environment of tariff-induced uncertainty, he'll be watching the relationship between credit spreads and equity markets.

A recent letter addressed to the FHFA fueled a consumer advocacy group to look at salaries, which have been criticized as not aligned to the system's purpose.

Federal Reserve Gov. Michelle Bowman, who has been nominated to be the central bank's top regulator, sidestepped direct questions about the Trump administration's incursion into the Fed's regulatory independence.

Rather than trying to police the way banks' artificial intelligence models are designed, regulators should assess the results they produce and make sure they adhere to existing consumer protection rules.

Federal Reserve Gov. Michelle Bowman will go before the Senate Banking Committee Thursday for her confirmation hearing to be the next vice chair for supervision at the central bank.

Inflation cooled faster than expected last month, giving the Federal Reserve room to ease monetary policy if the economy weakens suddenly. But tariffs and other policy changes still cloud the outlook for monetary policy.

House Financial Services Committee member Andy Barr, R-Ky., will introduce a Congressional Review Act resolution to nullify the Office of the Comptroller of the Currency's merger rule that went into effect in January.