Quarles Quandary Not Key to Fed Reg, M&A Action
Late yesterday, the Federal Reserve Board announced that Randy Quarles will cease his duties as supervision vice chair starting today. Mr. Quarles’ term as a governor continues until 2032 but the vice chairmanship is a position appointed by the President and confirmed by the Senate.

FSB Sets Ambitious Course for Cross-Border Payment Redesign
The FSB today published both a progress report on its cross-border payment roadmap (see FSM Report PAYMENT21) and a final set of forward-looking plans. Work on the roadmap has advanced well, with the FSB now expressly incorporating CBDC into its forward-looking work.

Senate GOP Heightens Pressure on Reserve-Bank Appointments
Countering an array of Democratic demands for diversity, Senate Banking Republicans today urged the boards of the Boston and Dallas Reserve Banks to ensure an apolitical appointment process.

AI Task Force Considers Algo Privacy, Transparency, Bias
As anticipated, today’s HFSC AI Task Force hearing on ethical AI kicked off Congressional work on this hot topic, making it clear that Democrats may advance consumer-data privacy, algorithm transparency, and anti-bias standards.

Brown Fires Fusillade at Fed Regulatory Policy
Making it more than clear that he takes at best a guarded approach to Jay Powell’s renomination, Senate Banking Chairman Brown (D-OH) today sent Mr. Powell a letter demanding a “new direction” in bank regulation regardless of who succeeds Vice Chairman Quarles and chairs the Fed.