“A New Era for Financial Regulators”
Federal regulators proposed easing the enhanced supplementary leverage ratio for large banks, aiming to boost liquidity in the U.S. Treasury market by making it cheaper to hold low-risk assets. Treasury Secretary Scott Bessent played an active role in shaping the proposal, part of an ongoing shift toward greater executive branch involvement in financial regulation. While the changes won’t drastically alter market behavior, experts say it could help stabilize the Treasury market in times of stress.
Read more about the SLR proposal here, and check out this related piece on the declining independence of banking agencies, a trend that didn’t begin with the Trump administration but has accelerated under it.
“The Key to Attracting and Retaining Core Deposits”
Community banks are shifting from offering competitive rates to building relevance through customer segmentation and tailored services. Review this new report from Q2 Insights to learn how banks can attract and retain core deposits through targeted, full-service solutions.
“Trump’s Lonely Attacks on Powell”
Publicly and behind the scenes, President Trump has been pressing GOP lawmakers to attack Fed Chair Jerome Powell for not lowering interest rates. But while some members appeared frustrated with Powell’s cautious stance at a recent House Financial Services Committee hearing, most of them resisted the president’s demands and refrained from echoing his harsh rhetoric.
In Senate Banking Committee testimony the following day, Republican lawmakers again mostly refrained from attacking Powell directly. However, there were tense moments, including a sharp line of questioning from Sen. Bernie Moreno, R-OH, and criticism from several members, including SBC Chair Tim Scott, R-SC, about renovations to Fed offices.
“Stablecoin World Opens Up to Main Street Banks”
Fiserv plans to launch a stablecoin and digital asset platform with built-in fraud, risk, and settlement controls by end of 2025, which more than 3,000 community and regional banks will be able to access via its payments system.
"Big Banks, Worried About Being Trump’s Next Target, Race to Appease Republicans”
Fearing potential executive action on “debanking,” big banks are distancing themselves from “woke” policies and actively engaging with Republican officials in states like Texas and Oklahoma to counter accusations of politically motivated boycotts.
“The Hard Truth? Banks’ Lousy Data Management Is Enabling Criminals”
Despite heavy investments in anti-money-laundering technology, many banks still struggle with poor-quality transaction data, which is undermining their risk management and compliance efforts.
“Nissan Applies for ILC Charter from FDIC”
The automaker joins Ford, General Motors, and Edward Jones in applying for an industrial loan company charter, hoping to take advantage of the Trump administration’s softer regulatory stance on ILCs. Acting FDIC Chair Travis Hill, for one, has said the charters will help increase the number of banks in the U.S.
In Other News
GOP senators continue to push back on Medicaid cuts, jeopardizing President Trump’s reconciliation bill; Applebee’s and IHOP are rolling out artificial intelligence across their restaurants; and in recent years, a mystery buyer has shelled out $250 million for real estate in Palm Beach—any guesses who?
Thanks for reading.