"The Senate's Stablecoin Bill Risks Repeating Past Legislative Mistakes"
Brooksley Born, the former head of the CFTC who was lampooned for sounding the alarm on derivatives years before they nearly crashed the global financial system in 2008, is now warning that the GENIUS Act fails to address runs, illicit use, and other key risks.
“Crypto’s Credit Card Dilemma”
Speaking of stablecoins, the GENIUS Act is at risk due to a heated dispute over a proposed credit card swipe-fee amendment, which has pitted powerful finance and retail lobbying groups against each other.
In other crypto news, a new crypto market structure bill got a rocky reception at a Wednesday hearing, with Democrats expressing concerns that it would enable banks to evade securities laws.
“Is the Surge in High-Yield Savings a Windfall—Or a Warning?”
Depositors increasingly prefer floating-rate, high-yield savings accounts over CDs, and many banks have been quick to accommodate them. But savings products aren’t as sticky as they used to be.
"Letting Wells Fargo off the Leash Will Rattle Regional Banks"
The Fed has lifted the $1.95 trillion asset cap on Wells Fargo that was part of a consent order to address the bank’s fake-account scandal. Analysts say the move will likely intensify deposit competition.
"Trump Megabill Would Expand Deficits by $2.4 Trillion, CBO Estimates”
President Trump’s big, beautiful bill would lead to some big, beautiful deficits, slashing tax revenue by $3.6 trillion over the next decade, according to the Congressional Budget Office. A day before the analysis was released, former head of DOGE Elon Musk called the bill a “disgusting abomination.”
Also: the one tax break even GOP deficit hawks won’t touch.
"New Way of Thinking About Noninterest Income”
Financial institutions are facing a big challenge: margin compression after years of costly deposit incentives. With shrinking net interest margins and pressure on traditional fees like overdraft, community banks must shift from spread-based to fee-driven income, this article says.
“Friend or Foe? Banks Face Dilemmas Amid Private Credit Boom”
Banks are losing commercial lending share to the nonbanks they help fund. At the same time, they are profiting from these partnerships. A broader issue is how the rise of private credit will ultimately impact financial stability.
"As Treasury Market Is Poised to Grow, Fragilities Mount”
The Treasury market has recovered from its post-Liberation Day swoon, but the swelling national debt and other vulnerabilities make future turmoil more likely, experts say.
“Senate Confirms Bowman as Fed Supervision Czar”
Governor Miki Bowman was confirmed as Fed vice chair of supervision without a single Democratic vote, which is surprising given her widespread popularity among community banks. The ABA, ICBA, and Financial Technology Association each issued statements applauding her confirmation.
“How AI Can Calm Customers Unnerved by Economic Upheaval”
Some banks are using generative AI to meet the needs of anxious customers and manage emerging risks. But if you were to ask Kiah Haslett, banking and fintech editor for Bank Director and FinXTech, she’d likely tell you most banks aren’t doing enough. Check out our most recent episode of Banking with Interest to hear more, including why all banks should have a comprehensive data strategy.