The SEC asked the Eighth Circuit to rule on the challenge to the climate risk disclosure rule. The SEC is seeking to have the court overturn the rule so that it does not have to solicit public input in order to withdraw the rule.

Following Executive Order 14179, “Removing Barriers to American Leadership in Artificial Intelligence,” the Trump Administration calls for the removal of red tape and onerous regulation related to AI.

While it is true that innovative AI can improve and strengthen the banking industry and benefit consumers, AI also brings an array of threats. For example, Sam Altman recently warned that AI may bring a “significant impending fraud crisis” to the banking sector because of its ability to evade current fraud detection systems.

The Trump Administration is ignoring such warnings with its rollout of a comprehensive AI plan centered on deregulation. This action directly contradicts the U.S. Treasury report, which Better Markets supported, that presented a balanced view of AI’s uses, opportunities, and risks throughout the financial services industry.

This proposal could address existing weaknesses with the Supervision Appeals Review Committee, including the fact that current members (FDIC Board members and their deputies) may not have direct supervisory experience or adequate time to devote to considering bank appeals. However, giving former bankers with no direct supervisory experience the authority to decide supervisory appeals presents a potentially serious conflict of interest.

FDIC rescinded its proposed rule that would have closed dangerous loopholes related to industrial loan companies. Industrial loan companies (banks that are owned by large corporations and do not have a holding company supervised by the Federal Reserve) foster unfair competition, threaten Main Street Americans, and endanger financial stability.

The 2024 proposed rule that is being rescinded would have strengthened the regulatory oversight of these banks.

FDIC, Fed, and OCC jointly issue a notice of proposed rulemaking to rescind the 2023 Community Reinvestment Act Rule. While the 2023 CRA rule wasn’t perfect, it still resulted in critical investments in many communities and provided some protection for low- and moderate-income families against discrimination by banks.