"FDIC Proposes Tying Agency Regulatory Thresholds to Inflation"
The FDIC proposed tying certain asset thresholds to inflation. “These thresholds have not been raised in decades and present meaningful challenges for small institutions that have been scoped into the rule,” Acting Chair Travis Hill said.
The FDIC also voted to end a Biden-era proposed rule requiring ILC applicants to prove independence from their parent companies.
"AI Search is Scoring Bank Reputation. If You’re Under 4.2 Stars, Trouble is Brewing"
The launch of Google’s AI Overviews, which automatically include summaries of consumer sentiment about businesses, creates new reputational hazards for banks of all sizes. “This means your reputation—good or bad—is being algorithmically summarized and shown to people before they even reach your website,” The Financial Brand reports.
"How Stablecoins Could Affect Borrowing Costs for the Government, Businesses and Households"
“Crypto Week” hit a brief snag as intra-party Republican opposition held up the GENIUS and STABLE acts. If passed (which now appears likely after a late-night Wednesday deal), the laws will set the stage for a dramatic uptick in stablecoin usage. The ABA explores how a stablecoin-fueled reduction in borrowing costs for the federal government might result in lower credit availability for community banks.
"Community Banks Lead Fundraising for Texas Flood Recovery Efforts"
As Texas continues to reel from devastating flooding, community banks in the state have stepped up donation efforts to help victims. Multiple Texas banks including Security State Bank & Trust, Texas First Bank, First Community Bank, the Texas Regional Bank have announced donation matching efforts totaling more than $350,000.
Wednesday saw President Trump deny reports that an attempt to fire the Fed Chair was imminent. Markets dipped when news of Powell’s alleged ouster originally broke earlier in the week, leading many (such as JPMorgan CEO Jamie Dimon) to voice their support for the continued independence of the Fed.
"Want to Know Where the Economy Is Headed? Look at These Banks"
Smaller lenders, not financial markets, tell the real story about where the economy is headed, argues the WSJ’s Telis Demos. Savvy investors should look past the coverage of large banks, and pay attention to reports from regional institutions, which more closely track real economic activity.
"Employees at the Nation’s Consumer Financial Watchdog Say it’s Become Toothless Under Trump"
The Associated Press took a close look at what’s going on—or more precisely, what’s not going on—at the CFPB. “CFPB employees say they essentially spend the workday sitting on their hands, forbidden from doing any work by directive from the White House,” AP reports, Meanwhile, a federal judge reversed a CFPB rule that would remove medical debt from credit reports.
In Other News
The Trump administration reversed course and will allow the sale of NVIDIA AI chips to China, a declining dollar creates unwelcome surprises for American travelers, and can you imagine paying $4 million for a rock? That’s how much Sotheby’s estimates the largest piece of Mars ever found on Earth will fetch at auction.
Thanks for reading.