“CEO Pay To Be Clawed Back When Banks Fail Under New Senate Plan”
A bipartisan Senate proposal from Sens. Elizabeth Warren, D-MA, and Josh Hawley, R-MO, would require regulators to recoup bonuses and other compensation from executives found responsible for large-bank failures. Earlier efforts to strengthen clawback provisions failed to gain traction in Congress, despite backing from the Biden administration and several Senate proposals introduced in the months after the collapse of SVB and other large regional banks.
“Fed’s Bowman: Smaller Balance Sheet to Inform Liquidity Rules”
Upcoming changes to liquidity rules and lending facilities will be designed with a smaller Fed balance sheet in mind, Vice Chair Michelle Bowman said during remarks at the ABA Washington Summit. Bowman added that the push to shrink the Fed’s balance sheet could gain momentum with a change in Fed leadership, noting that Kevin Warsh, President Trump’s nominee for Fed chair, has expressed support for the idea.
“FDIC’s Hill: Stablecoins Ineligible For Pass-Through Insurance”
FDIC Chair Travis Hill, also speaking at the ABA summit, said the agency plans to propose rules clarifying that payment stablecoins governed by the GENIUS Act will not qualify for pass-through deposit insurance. By contrast, he indicated that tokenized deposits would likely remain eligible for deposit insurance coverage similar to traditional deposits.
“Top US Banks Weigh Suing Federal Regulator Over Crypto Banking Rules”
The Bank Policy Institute is reportedly considering legal action against the OCC over the agency’s approach to granting national trust charters to crypto, payments, and fintech firms. Big banks argue the policy would allow nonbanks to operate nationwide without being subject to the same supervisory framework applied to traditional banks, a concern also raised by the CSBS and ICBA.
“Trump Issues Fraud Order After Bank Execs Push National Strategy”
Heeding a call from industry executives, President Trump signed an executive order directing federal agencies to develop a coordinated strategy to combat cybercrime and financial scams. The order calls for an action plan targeting criminal networks behind fraud schemes and follows industry testimony that cybercrime losses hit $16.6 billion in 2024.
“Why Every Banker Should Be Watching the Illinois Interchange Lawsuit”
A federal judge issued a split ruling on Illinois’ Interchange Fee Prohibition Act, allowing the law’s restriction on collecting interchange fees tied to sales taxes and tips to remain in place while blocking a separate data-use limitation. The case keeps alive a broader legal and policy fight that could influence interchange revenue and card program economics beyond Illinois, one expert argues.
“Trillions In Wealth Will Soon Change Hands, And 70% Will Go To Women. How Can You Help?”
A large share of the coming generational wealth transfer is expected to flow to women, creating retention risk and relationship opportunities for financial institutions. Research suggests roughly 30% of inheritors switch providers during wealth transitions, underscoring the importance of building multigenerational client relationships before assets change hands.
In Other News
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