Risk

In the U.S., bankers are used to prescriptive rulemaking, and without it they seem uncertain about how to move forward with AI. Europe tried writing prescriptive AI rules, and they were a disaster. Now nobody knows how to move forward.

The bipartisan housing package, dismissed by President Trump as a "yawn," takes effect automatically after he declined to sign it in protest over stalled voter ID legislation.

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 bill, which passed with wide bipartisan support, will become law at midnight if President Donald Trump doesn't veto it.

The Federal Reserve's semiannual monetary policy report — released just days ahead of Fed Chair Kevin Warsh's inaugural testimony to Congress in his new role — highlights rising inflation and capital investment-driven economic growth.

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.

Federal Reserve Bank of Dallas President Lorie Logan said at an event Thursday that conducting monetary policy actions through a third party would improve efficiency and make markets stronger.

Federal Reserve Chair Kevin Warsh's five policy review groups will be composed of a broad mix of business leaders, academics and former central bankers, including venture capitalist Marc Andreesen and former Fed Gov. Jeremy Stein.

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.

Banking lobbyists' push for changes to stablecoin yield rules as part of long-embattled crypto market structure legislation has stalled, with no new talks in sight.

The order covers the European units of JPMorganChase, Goldman, Citi and Morgan Stanley, and previews what U.S. regulators may eventually demand.

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.

Federal Reserve Board Gov. Christopher Waller says he is OK with dialing down the amount of communication issued by the central bank's monetary policy committee, but doesn't want the central bank to throw out the baby with the bathwater.

Now that the code underlying payment systems can be rewritten faster than its reliability can be checked, banks and payments processors need to adopt new methods of verifying that changes are safe and stable.

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

The Bureau of Labor Statistics report showed the labor force continued to expand but at a weaker rate than in recent months. The development weakens the case for a near-term rate hike.

A bill setting national standards for earned wage access programs passed the House Financial Services Committee in a 29-22 vote.

Securities and Exchange Commission Chair Paul Atkins said tokenized bank deposits are likely to be a reality in 2027, and added that he is working with banking agencies on digital assets and capital requirements.