Date | Action | Agency | Summary |
---|---|---|---|
2025-05-28 | Federal Reserve Disbands Internal Groups That Assess Climate-Related Financial Risk |
Federal Reserve
|
The American people deserve—and the law requires—regulators to ensure banks identify and address all material risks, regardless of the source. Unfortunately, the Fed is blowing with the political winds and abandoning its responsibility related to climate risks to be an independent supervisor of the banking system that protects the American taxpayer.
Proving that this was a political move based on the last election, the Fed’s action was done after the Fed itself just last year identified deep and broad deficiencies in basic climate risk analysis and management at Wall Street’s six largest too-big-to-fail banks through its narrow, limited pilot climate scenario analysis. It also follows the Wall Street banks themselves warning of catastrophic climate risk.
|
2025-05-27 | CFPB Dismisses Lawsuit Against Snap Finance |
CFPB
|
The CFPB permanently dismissed without explanation its Utah federal lawsuit against lease-to-own finance company Snap Finance for allegedly locking consumers into expensive financing agreements with misleading marketing, abusive contracting, and inadequate cost disclosures. |
2025-05-23 | Federal Reserve Joins Banking Industry in Pausing Stress Test Lawsuit |
Federal Reserve
|
The Federal Reserve joins with the banking industry to pause the ongoing lawsuit regarding the large bank stress tests, agreeing to disclose the stress test models and seek comment on both the scenarios and future model changes. Stress tests are critical to the oversight of the largest, systemically important banks. Although the decision to make stress tests more transparent sounds like a good thing, it is actually making them weaker, less informative, and more susceptible to gaming. When the models and scenarios are published, they become less robust. Consequently, the test results will give a false sense of security and allow for capital ejection to shareholders and bank executives, which leaves less protection to be used in a crisis and more liability for taxpayers. |
2025-05-22 | SEC Dismisses Dealer Cases |
SEC
|
The SEC dismissed three cases alleging that firms who purchase debt from small issuers, convert that debt into stock, and sell the stock on the open market at high volumes and frequencies are securities dealers. Investors are left unprotected if firms that are in the business of buying and selling securities need not register as a securities dealer. |
2025-05-19 | Eliminating FinHub |
SEC
Other
|
Chair Atkins said that the SEC is asking Congress for approval to dismantle the Strategic Hub for Innovation and Financial Technology (or “FinHub”). The elimination of FinHub, which was designed to support the agency’s oversight of not just crypto but also artificial intelligence, quantum computing, and automated investment advice, means investors will be less protected from emerging technologies. |
2025-05-16 | Federal Reserve Plans to Cut 10% of Staff |
Federal Reserve
Other
|
The Federal Reserve will make the banking system and economy less safe and less stable with cuts to staffing. Fewer Federal Reserve staff to supervise banks, conduct monetary policy, and support the safe and smooth functioning of the banking system is a bad decision for all Americans. A shortage of trained and experienced bank supervisors was found to be a key cause of the 2023 bank failures. This decision will hurt the Federal Reserve and our banking system. |