FSB Revisits Cross-Border GSIB Resolution Quandary
Continuing its work to end TBTF banks, the FSB today issued good practices for the crisis management groups that would take on a troubled GSIB. It is striking that this statement does not use the more conventional “best practices” designation; one can only speculate that this is due to limited English proficiency by the final drafts people or the document fell short of what some FSB participants believed behooved best practice.
Waters, Foster Urge Rules to Combat Algo Bias
Continuing a recent hearing theme, HFSC Chairwoman Waters (D-CA) and AI Task Force Chair Foster (D-IL) late yesterday urged federal financial regulators to ensure that AI/ML is algorithmic-bias free. Responding to the regulators’ request for information on AI use (see FSM Report AI), they argue that historical data may perpetuate longstanding bias and create models that discriminate against protected classes.
Clarida Stands By Fed Emergency Market Interventions
Outgoing FRB Vice Chairman Clarida today argued that the Fed has carefully deployed its 13(3) emergency powers and thus preserved its independence.