Open Banking Rule, Costs of Deposit Insurance Reform, Great Wealth Transfer: This Week’s Top Stories
“Crypto Crashes CFPB Open Banking Rule”
The Trump administration has changed course on the CFPB’s open banking rule. It now plans to rewrite the rule quickly after receiving intense pushback from fintechs and the crypto industry, including from key players like Tyler Winklevoss and Donald Trump, Jr. The developments highlight the growing influence the crypto industry has over Washington and rising tensions over whether banks can charge fintechs for access to consumers’ data, Politico’s Sam Sutton writes.
“Trump Says JPMorgan, Bank of America Rejected His Deposits”
President Trump accused JPMorgan Chase, Bank of America, and other institutions of refusing to accept over $1 billion of his deposits in recent years for political reasons, a major shift in tone that places the blame for “debanking” on banks rather than regulators. Trump is expected to issue an executive order on the matter soon (and may have done so already by the time you’re reading this).
“Raising Deposit Insurance Limits Would Cost Consumers Over $30 Billion”
Deposit insurance reform may impose significant costs on taxpayers, notably through reduced credit access and higher banking fees, argues Dan Savickas, VP of policy and government affairs at the Taxpayers Protection Alliance.
“The Wealth Transfer Problem No One Talks About, and the Community Banks Solving It”
Some $30 trillion will change hands by 2030, and 70% of heirs are moving assets to other institutions. To counter this threat, some community banks are adopting digital estate planning tools and prioritizing relationships with younger generations.
“How Do Reciprocal Deposit Networks Interact with Deposit Insurance?”
Increasing the FDIC insurance limit would be significantly more expensive than continuing to use reciprocal deposit networks, according to a new report from the Federal Reserve Bank of Dallas, which estimates annual costs of $15 billion for higher coverage versus $500-$600 million for reciprocal services. The report also found that banks that use reciprocal deposit networks are safer than those that don’t.
“The Significance of the General Counsel in Modern Community Banking”
At community banks, the role of general counsel has evolved from peripheral advisor to strategist responsible for compliance, risk management, and governance, one lawyer says. As technology evolves and regulatory complexity increases, community bank GCs must balance legal obligations with a range of business objectives to ensure their institutions stay ahead of the curve in data privacy, cybersecurity, and other areas.
“Trump Just Got a Fresh Shot at Bending the Fed to His Will”
Fed Governor Adriana Kugler announced she will leave the central bank six months before the end of her term, handing President Trump an unexpected opportunity to appoint a new governor and groom his preferred successor to Chair Jerome Powell. It’s unclear who that successor will be, though Trump did say Tuesday that Treasury Secretary Scott Bessent does not want the job.
In Other News
President Trump plans to meet with Vladimir Putin to discuss ending the war in Ukraine, a black bear stunned Colorado residents by crawling out of a manhole, and the WSJ published a bizarre tale about a couple living in an LA mansion with 22 surrogate children.
Thanks for reading.