Federal Reserve

President Donald Trump signed an executive order Tuesday directing federal financial regulators to treat undocumented immigrants as potential credit and compliance risks.

U.S. Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell summoned Wall Street executives this week to warn that a new artificial intelligence model from Anthropic could mark the start of a more dangerous phase in cybersecurity.

Trump’s crackdown on “debanking” is colliding with a core compliance problem for U.S. banks: the very policies his administration wants to curb have long given lenders a way to cut off customers they suspect of wrongdoing without violating federal secrecy rules.

Federal Reserve Governor Michael Barr warned on Tuesday that stablecoins pose risks related to money laundering, financial stability, and reserve quality, as U.S. banking agencies work on regulations to implement new federal rules for the sector.

U.S. Treasury Secretary Scott Bessent has discussed ways to tighten the Treasury’s oversight of the Federal Reserve by borrowing elements from the Bank of England model, in a move that could significantly reshape the central bank’s relationship with the government.

U.S. regulators on Thursday proposed easing bank capital rules, a move that would allow the country’s largest lenders to hold billions of dollars less in capital and mark a major win for the sector.

The Federal Reserve on Monday proposed a new rule that would prohibit its examiners penalizing institutions over the “reputation risk” they face from customers—a policy shift that aligns with ongoing litigation brought by President Donald Trump against JPMorgan Chase. 

A group of six Senate Democrats is demanding that the Federal Reserve turn over information about the ongoing overhaul of its bank supervision division following reports of internal tension linked to staff cuts and the alleged sidelining of examiners.

The Federal Reserve has told banks it plans to review and potentially drop some outstanding confidential supervisory warnings, as Vice Chair Michelle Bowman pushes to refocus oversight on near-term threats to lenders’ financial condition.

Citigroup executives are increasingly optimistic they can complete the compliance work tied to the bank’s major regulatory consent orders later this year, according to Reuters.