Earlier today, we sent you our analysis of a consequential Fed study showing how well U.S. banks weathered the pandemic and how post-2008 rules made this possible.  In short, one more notch in the Fed’s own belt signifying its banking-system success under not just a severely-acute stress scenario, but also the near-miss of the real thing.  However, as the Fed readily acknowledges and this study convincingly demonstrates, the rules governing [...]

Earlier this week, I told the American Banker that the political battle over social-welfare finance is a fundamental question about the purpose of private capital.  We each confront a similar dilemma as we try to do well to ensure our own and our family’s financial security while seeking also to do good for those outside our immediate circle.  We usually meet the “be good” obligation associated with doing well through [...]

Advancing their efforts to ensure “responsible innovation,” federal agencies have taken an initial, cautious step into assessing the prudential, compliance, risk-management, and fairness implications of artificial intelligence (AI) and machine learning (ML).  Posing only very general questions on matters most clearly within their purview, the agencies appear open and perhaps in some ways even eager to govern AI/ML use, but most uncertain about how to do so. The full report [...]