Risk

Banks are racing to adopt artificial intelligence while often de-emphasizing basic banking education — human intelligence — at the new employee, executive, and board levels. That's a recipe for disaster.

Polling suggests that Democrats could retake control of the House and have a formidable shot at the Senate as well. If they win both chambers, oversight of bank regulation, crypto and Trump administration officials will be the name of the game.

Bank and credit union regulators proposed a rule that would apply more supervisory oversight to core service providers, saying the firms sometimes provide little transparency to banks and can disrupt due diligence processes.

The consumer price index rose 0.4% last month, in line with July's reading. For a monetary policy committee that has been split on inflation, the inconclusive report will compel the Fed to make a call on whether to raise interest rates or stay put.

Consumer advocacy group Better Markets filed a lawsuit in federal district court Thursday claiming the Federal Reserve's top regulator coached bankers on how to comment on proposed capital rules in "secret meetings."

A federal judge found SVB Financial's management negligently prioritized yield over safety, allowing the Federal Deposit Insurance Corp. to retain the deposits after the bank's 2023 collapse.

Financial advisors would be wise to treat "health span" like an investment portfolio to better prepare clients to afford and enjoy longer retirements, a researcher said.

Treasury Secretary Scott Bessent said the agency's long-dated Treasury bond buybacks are intended to improve liquidity on the long-dated end of the market rather than influence monetary policy.

Rebecca Kelly Slaughter's firing from the Federal Trade Commission spurred a lawsuit that led to the Supreme Court  overturning Humphrey's Executor and ending agency independence. Slaughter says she will continue to work on consumer protection issues.

In assessing the strength of banks' management, regulators need to work with stakeholders to develop a set of evidence protocols, analytical frameworks, and illustrative metrics that will allow fair, consistent and proactive measurement.

A recently finalized joint rule from the Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. raises the bar for formal supervisory criticism, putting more of the responsibility for managing downside risk on banks.

IDScan.net removed the pages naming its bank and credit union integrations after KrebsOnSecurity traced 153 million license scans to the company.

The Securities and Exchange Commission proposal would eliminate a ban on investment advisors receiving government contracts within two years of making political contributions. The agency says existing laws can address pay-to-play conflicts of interest.

The billion-dollar Dallas bank had been cited for money laundering concerns, and its recent conversion to a national charter drew sharp criticism from Sen. Elizabeth Warren.

The U.S. economy added 162,000 jobs in August, bouncing back from a surprise decline in July. The Fed's next interest rate decision will still hinge on next week's inflation reading.

President Donald Trump Wednesday signed a continuing resolution to fund the government through December, averting a government shutdown at least until after November's elections.

The Commodity Futures Trading Commission asked a federal court to drop a suit filed by the Chicago Mercantile Exchange challenging the agency's decision to let Kalshi offer bitcoin perpetual futures contracts, known as perps.

The Federal Reserve governor said an upcoming change to the personal consumption expenditures index could show ongoing improvement in prices, building the case for leaving interest rates unchanged.

Banks are more prone to say artificial intelligence model performance has a high level of risk than credit unions, according to new American Banker research.

Federal Reserve Bank of New York President John Williams said Wednesday that inflation expectations remain well anchored, suggesting a "wait-and-see" approach for monetary policy.