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2 01, 2024

AI4

2024-01-02T10:14:03-05:00January 2nd, 2024|1- Financial Services Management|

AI Financial Risk, Rules

Bipartisan Senate legislation has been introduced to press FSOC to do more than highlight artificial intelligence (AI) as a potential threat to financial stability.  The measure instead requires the Council to undertake a rapid study of AI’s financial stability risk and report to Congress on conclusions that must then be advanced through FSOC designation and federal-agency action.  The bill also gives the SEC more authority to address at least some of the risks its chairman has identified that may be posed by predictive analytics, including AI.  New AI-related stress testing would also be likely.

AI4.pdf

1 07, 2022

DAILY070122

2023-01-24T15:47:40-05:00July 1st, 2022|2- Daily Briefing|

Federal Stablecoin Construct Takes Shape

Treasury late yesterday released a statement from Secretary Yellen following a meeting of the President’s Working Group on Financial Markets on the status of work on its stablecoin report (see Client Report CRYPTO21).  Treasury emphasized the importance of “serious” legislative engagement in a “prompt” fashion, but the statement is unlikely to be an indirect endorsement of the Lummis-Gillibrand bill (see FSM Report CRYPTO28) given the priorities the Secretary also said require attention (e.g., runs, consumer protection, concentrated market power).

FDIC DIF-Premium Plans Posted

The Federal Register today includes the final versions of the FDIC’s revised DIF restoration plan and proposed premium increase (see FSM Report DEPOSITINSURANCE114).  As noted, DIF premiums would almost double on average, with the largest banks paying as much as five percent of income. Comments are due by August 20.

Daily070122.pdf

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