Regulators have made progress on revising stress tests, the Volcker Rule and other post-crisis measures. But some worry examiners still have too much latitude to punish banks for trivial matters.
In his second straight day of congressional testimony, the central bank’s top regulatory official was put on the defensive about a pending proposal to relieve regional banks from the toughest supervisory requirements.
The Federal Reserve is paying close attention to how it might regulate artificial intelligence and machine learning, Fed Gov. Lael Brainard said in a speech Tuesday.
The federal agencies said in a recent statement that “guidance does not have the force and effect of law,” but two trade groups say that standard should be more binding.
The House Financial Services Committee has steadily passed regulatory reform legislation this year. But any measure faces a stiffer challenge in the upper chamber.
Regulators will continue to issue guidance to articulate general views on appropriate practices, but they will not issue enforcement actions based on violations.
The Treasury secretary told lawmakers that the government needs “to strike the right balance” on Bank Secrecy Act requirements while determining the best way to collect details about account holders.
The Consumer Financial Protection Bureau's practice of "regulation by enforcement" and use of nonbinding guidance materials makes its regulatory efforts "unfair and ineffective" to lenders and servicers, the Mortgage Bankers Association said.