Risk management

The Federal Reserve says its findings related to "unsafe and unsound practices and violations" of previous agreements with the central bank related to the lender's prior relationship with the Estonian branch of Danske Bank.

This is no time to haphazardly pile financial regulation and additional costs on an American economy that seems otherwise set to avoid the catastrophes predicted just last year.

The Buffalo, New York, bank said that share repurchases are off the table, even though the amount of incremental capital it's required to hold has declined from last year. Executives pointed to forthcoming revisions to risk-based capital rules, which are expected to hit midsize banks like M&T.

For large banks, the agencies wanted to go above the global standards for residential mortgages, as well as some business loans, to avoid giving those lenders a competitive advantage over smaller peers, according to another person familiar with the proposal.

Experts and industry leaders said banks are pumping investment into technology that can connect information silos.

New legislation from Rep. Sean Casten, D-Ill., would impose various requirements and consequences on large banks that don't have a chief risk officer. It follows the failure of Silicon Valley Bank, which left the job unfilled for eight months last year.

Data from recent bank failures suggests that prevailing assumptions about which deposits are the most volatile could be dangerously flawed.

The Federal Reserve has taken heat in recent years for its forays into climate stress testing, but the effects of climate change on the broader economy are getting harder to ignore.

If history is any guide, periods of disruption in the industry are followed by regulatory resets, which in turn force banks to compete for the talent needed to meet new compliance demands.

The banking crisis set in motion by the failure of three banks has the industry focusing once more on how to avoid the same scenario.