Banks Won't Get Serious About Climate Risk Until GSEs Make Them
Former FHFA chief economist Alexei Alexandrov argues that climate risk in U.S. mortgages will only be addressed when the government‑sponsored enterprises (GSEs) embed forward‑looking insurance costs into underwriting. Escalating flood and wildfire exposure is already driving higher premiums and pressuring home values, creating a gap between one‑year insurance contracts and 30‑year mortgage guarantees. By aligning mortgage qualification with longer‑term or renewable insurance products, the FHFA can signal true affordability and shield taxpayers from hidden losses. Individual lenders lack the data and fair‑lending flexibility to price this risk on their own.
The Local Bank Branch Is Not Quite Dead
Bank branches are not dead; major lenders like JPMorgan Chase and Bank of America continue to open new locations despite a wave of closures in smaller towns. The physical lobby is evolving into a lounge‑style space, emphasizing relationship‑building over traditional...
Better Credit Quality Lets M&T Lean Into Buybacks
M&T Bank reported a stronger first‑quarter, with net income up 14% to $664 million and earnings per share of $4.13, beating expectations. Credit quality improved markedly, as charge‑offs fell to $105 million, the lowest level since early 2024, allowing the bank to...
Fed's Barr Says Tariffs, Geopolitics Weigh on Rural Areas
Federal Reserve Governor Michael Barr warned that recent tariff shifts and the Iran‑related conflict are creating short‑term cost pressures for rural America, especially in agriculture. He highlighted a 38% drop in U.S. soybean shipments to China, a 55% surge in...
Cornerstone Capital Bank Adds Employee Stock Ownership Plan
Cornerstone Capital Bank announced a qualified employee stock ownership plan (ESOP) that gives staff a direct stake in its privately held parent company. The plan, limited to internal employees and affiliates, follows years of preparation and is positioned as a...
Exclusive: HSBC Extends Tokenized Deposit Service to US
HSBC is extending its tokenized deposit service to the United States, adding the market to the four regions where the product already operates—Hong Kong, Singapore, Luxembourg and the U.K. The on‑chain offering lets corporate clients move money instantly across domestic and...
ICBA Outlines Wins, Concerns in Housing Policy Push
The Independent Community Bankers of America (ICBA) welcomed parts of the House’s Housing for the 21st Century Act that promote tiered examinations for smaller lenders, while flagging gaps in the Senate’s small‑loan incentive proposal, which lacks clear funding and sets...
Former Fed Official Argues Against Fed Independence
Former Fed Vice Chair for Supervision Randal Quarles told a Shadow Open Market Committee audience that the legal shield preventing presidential removal of Board members should be scrapped, but argued the Fed’s decentralized structure would still keep monetary policy insulated from...
Securitize Appoints Former SEC Official as President
Securitize has appointed former SEC Markets and Trading Director Brett Redfearn as its president and board member, bolstering the firm’s regulatory credentials ahead of a planned public listing. The tokenization fintech is pursuing a SPAC merger that values the company...
FBI: Real Estate Cyberfraud Rises with More AI, Crypto Scams
The FBI’s Internet Crime Complaint Center reported that real‑estate cybercrime losses surged to $275 million in 2025, a 59 percent rise from the previous year. AI‑enabled scams and cryptocurrency fraud accounted for a growing share of the losses, with 115 AI‑related incidents...
BayCom in California Replaces Its Senior Leadership Team
BayCom Corp., a $2.6 billion‑asset bank based in Walnut Creek, announced an abrupt overhaul of its senior leadership, replacing its long‑time CEO, COO and CFO with three former PacWest Bancorp executives. The new team—William Black as executive vice‑chairman, Christopher Baron as...
Why Banks Like Tokenized Deposits
American Banker’s analysis shows tokenized deposits are gaining traction faster than stablecoins among U.S. banks. Nineteen of the 50 largest banks are developing tokenized‑deposit strategies, compared with 15 pursuing stablecoins, and four banks already offer deposit tokens versus one stablecoin...
FDIC Rescinds 2023 Guidance on Nonsufficient-Fund Fees
The FDIC announced it is rescinding guidance FIL‑32‑2023, which warned banks that charging multiple nonsufficient‑funds (NSF) fees for a single transaction could be deemed unfair or deceptive under the Federal Trade Act. The agency said the guidance was overly broad...
Debt Collectors Sue California Regulator over Licensing Fees
ACA International, the trade group for debt collectors, has filed a proposed class action against California's Department of Financial Protection and Innovation (DFPI) challenging the agency's licensing fees. The suit seeks to halt enforcement of the fees and obtain refunds,...
Reputational Risk Rule Shows Why Subjectivity Is so Hard to Ban
The FDIC and OCC finalized a rule that bars bank examiners from issuing complaints based solely on reputational risk, except when the issue directly threatens a bank's financial or operational condition. The exception expands supervisory discretion beyond the original proposal,...
