All articles tagged with #banking regulation
Capital One says it closed more than 300 Trump Organization accounts in 2021 after review by its AML team, tying the closures to anti-money-laundering concerns and asking a Florida federal court to dismiss the Trump Organization’s lawsuit alleging political discrimination in debanking.
Senator Elizabeth Warren pressed JP Morgan CEO Jamie Dimon for clarification on the bank’s contacts with Jeffrey Epstein after newly released Epstein files suggested Dimon discussed the matter; Warren’s letter cites a 2009 email in which Epstein allegedly asked former minister Mandelson whether Dimon should lobby UK Chancellor Darling, with Mandelson reportedly advising to “mildly threaten.” Dimon has repeatedly said he never met Epstein, and JP Morgan says it ended its relationship with Epstein in 2013 and that Dimon was not involved in any decisions about his account; the documents and statements have renewed scrutiny of the bank’s links to Epstein and what Dimon or the firm knew about his activities.
Federal regulators issued joint guidance urging banks and credit unions to more closely vet loans to undocumented immigrants, citing elevated credit risk from possible deportation or job loss and suggesting verification of work authorization, while warning about concentrations in areas or industries affected by enforcement.
US banking regulators issued guidance detailing how banks should assess and manage credit risk when lending to borrowers living in the United States without legal status, emphasizing prudent underwriting and adherence to fair lending laws.
A former Citigroup wealth unit managing director filed a Brooklyn federal lawsuit alleging she was terminated in April 2025 after raising concerns about Citi’s risk-management practices and its discussions about taking on Donald Trump as a client, including the possibility of a numbered account; Citi says the departure followed multiple substantiated complaints about her behavior, while noting it changed its code of conduct in 2025 to prohibit discrimination by political affiliation.
Federal prosecutors have subpoenaed JPMorgan Chase, Bank of America, Wells Fargo and other banks in a sweeping criminal probe into whether they debanked customers for political reasons, demanding lists of closed accounts and the rationale behind closures. The investigation, led by the DC US attorney’s office, could invoke the Financial Institutions Reform, Recovery and Enforcement Act of 1989, though it remains unclear which law the banks may have violated; banks say they follow regulations and do not drop customers for politics.
Governor Barr argues in a speech that recent deregulation of bank capital, liquidity, and supervision threatens financial stability by increasing long-run risk, despite short-term gains. He urges maintaining strong capital, liquidity, and consumer protections to prevent crises, emphasizing bank–nonbank interconnections and the danger of a 'race to the bottom.'
Trump signs two executive orders: the first drops a plan to require banks to collect citizenship information and instead directs Treasury and regulators to explore how undocumented immigrants might open accounts or obtain loans, while considering changes to Bank Secrecy Act/ID rules; it also asks the CFPB to weigh deportation and wage-loss as factors in loan repayment and to provide guidance on credit risk for undocumented borrowers. The second order aims to boost fintechs’ access to the Fed’s payment rails by prompting regulators to review policies for innovation and competition while preserving safety, including evaluating which non-bank institutions can access Fed accounts.
U.S. regulators proposed softened Basel Endgame capital requirements, cutting overall capital at large banks by about 4.8%, by about 5.2% for larger regional banks, and 7.8% for banks under $100 billion in assets, freeing billions for lending, dividends, and buybacks. The Fed, FDIC, and OCC will review and solicit feedback on the Basel draft, amid industry lobbying to ease rules; critics warn the changes may weaken safeguards as risks rise. Analysts estimate roughly $175 billion in excess capital could be repurposed.
Vice Chair Bowman argues Basel capital rules have pushed banks out of mortgage origination and servicing due to MSR deductions and uniform risk weights; two proposed changes would remove the MSR deduction while keeping the 250% MSR risk weight and move to loan-to-value-based risk weights for residential mortgages, aiming to reignite bank participation, stabilize servicing, and preserve consumer choice and financial stability.
The article discusses how a Swiss compromise could potentially save UBS billions, highlighting the importance of strategic negotiations and regulatory considerations in maintaining financial stability.
U.S. regulators are easing bank examinations and disciplinary notices, focusing more on core financial risks and less on non-core issues like climate change and diversity, as part of a broader overhaul under the Trump administration aimed at reducing regulatory burdens and focusing on key safety metrics.
President Trump is strongly advocating against 'debanking,' claiming that banks have discriminated against him and others for political reasons, and is preparing an executive order to investigate such practices. Debanking, which involves banks refusing service to customers for various reasons, has become a contentious issue among conservatives and crypto advocates, often framed as a victimization narrative despite regulatory reasons for bank rejections. Trump’s personal allegations include claims of being cut off by JPMorgan Chase and Bank of America, highlighting the politicized nature of the debate.
The Trump administration is actively working to reshape the Federal Reserve through regulatory reforms, leadership changes, and workforce reductions, aiming to influence the central bank's policies and structure even before the current Chair Jerome Powell's term ends in 2026.
Chair Jerome Powell opened a conference on the integrated review of the capital framework for large banks, emphasizing the importance of a cohesive approach to risk-based capital requirements, leverage, surcharges, and stress tests to ensure a safe, sound, and competitive banking system, while inviting feedback for improvements.