Insights

If the Trump administration is really planning to trim back regulations on banking and financial services firms, the industry needs to get out in front of the process by identifying necessary reforms, writes Gene Ludwig.

If the Trump administration is really planning to trim back regulations on banking and financial services firms, the industry needs to get out in front of the process by identifying necessary reforms, writes Gene Ludwig.

One wonders if the nonbank financial system, with its limited regulation, could be considered a modern-day "wildcat" system ripe for instability, writes former Comptroller of the Currency Eugene Ludwig.

One wonders if the nonbank financial system, with its limited regulation, could be considered a modern-day "wildcat" system ripe for instability, writes former Comptroller of the Currency Eugene Ludwig.

Despite the anticipation of a new era in banking and regulation post-election, the reality is that the existing systems and bureaucratic machinery are likely to remain largely unchanged.

Despite the anticipation of a new era in banking and regulation post-election, the reality is that the existing systems and bureaucratic machinery are likely to remain largely unchanged.

Two former comptrollers of the currency argue that state-level efforts to regulate nationally chartered banks fly in the face of both the law and good sense.

Two former comptrollers of the currency argue that state-level efforts to regulate nationally chartered banks fly in the face of both the law and good sense.

Effective supervision is a “ground game” that necessitates ongoing interactions between supervisors and banks.

Effective supervision is a “ground game” that necessitates ongoing interactions between supervisors and banks.

Artificial intelligence is poised to become an integral part of the financial system. But, banks must remain vigilant in assessing the potential risks, including the growing threat of cyberattacks. By understanding these risks and taking proactive measures, banks can safeguard their operations and protect their customers' sensitive information.

Artificial intelligence is poised to become an integral part of the financial system. But, banks must remain vigilant in assessing the potential risks, including the growing threat of cyberattacks. By understanding these risks and taking proactive measures, banks can safeguard their operations and protect their customers' sensitive information.

The financial services industry is undergoing rapid transformation. Technological advancements, regulatory shifts, and evolving customer expectations are reshaping the competitive landscape. Data is emerging as a critical differentiator.

The financial services industry is undergoing rapid transformation. Technological advancements, regulatory shifts, and evolving customer expectations are reshaping the competitive landscape. Data is emerging as a critical differentiator.

A convergence of factors, including third-party reliance and increasing cloud adoption, has created a complex operational risk landscape. How can banks prioritize third-party management and technology to build a resilient risk management framework that supports long-term success?

It has never been more important for banks, particularly those over $10 billion in assets, to establish ironclad data quality, governance, and control standards. Failure to do so will have cascading negative consequences, writes Eugene Ludwig.

It has never been more important for banks, particularly those over $10 billion in assets, to establish ironclad data quality, governance, and control standards. Failure to do so will have cascading negative consequences, writes Eugene Ludwig.

The Supreme Court's recent decisions in Loper Bright and Jarkesy have ignited a fierce debate about the balance of power between federal agencies, the judiciary, and banks. By curtailing agency discretion and expanding the scope of jury trials, these rulings mark a significant shift in administrative law.

The Supreme Court's recent decisions in Loper Bright and Jarkesy have ignited a fierce debate about the balance of power between federal agencies, the judiciary, and banks. By curtailing agency discretion and expanding the scope of jury trials, these rulings mark a significant shift in administrative law.

The basics of good banking — a strong balance sheet, customer service and solid risk analysis — will always be important. But in the future, technological competence will be the difference between the sector's winners and losers.

The basics of good banking — a strong balance sheet, customer service and solid risk analysis — will always be important. But in the future, technological competence will be the difference between the sector's winners and losers.

With the line between banks and fintechs growing ever blurrier, financial services supervisors ought to consider adjusting regulation to fit the kinds of activity an institution is engaged in.

With the line between banks and fintechs growing ever blurrier, financial services supervisors ought to consider adjusting regulation to fit the kinds of activity an institution is engaged in.

Can banks and regulators collaborate to create a win-win situation? Can simplifying and focusing regulations create a safer, more-flexible banking system that serves American businesses and consumers more effectively?

Can banks and regulators collaborate to create a win-win situation? Can simplifying and focusing regulations create a safer, more-flexible banking system that serves American businesses and consumers more effectively?

Emerging regulatory frameworks, institutional interest, and technological advancements set the stage for a transformative future in the crypto industry

The question is not whether there will be an economic downturn or whether banks will have to manage problem loans and regulatory scrutiny. It's how regulators and banks can do better during the next downturn than they have done in the past.

The question is not whether there will be an economic downturn or whether banks will have to manage problem loans and regulatory scrutiny. It's how regulators and banks can do better during the next downturn than they have done in the past.

Proposed bank regulations are a key topic in Washington, but recent turmoil at the FDIC and strong industry opposition have slowed their progress. The question remains: will the Fed finalize its "Endgame" proposal before the upcoming elections?

Proposed bank regulations are a key topic in Washington, but recent turmoil at the FDIC and strong industry opposition have slowed their progress. The question remains: will the Fed finalize its "Endgame" proposal before the upcoming elections?

Globalization has made the world smaller. At the same time, it has made consumer lending bigger and far more complex. Gaps in traditional credit reports and increased unpredictability from the diversification of borrowers have complicated many credit decisions and changed the way we think about underwriting models.

Globalization has made the world smaller. At the same time, it has made consumer lending bigger and far more complex. Gaps in traditional credit reports and increased unpredictability from the diversification of borrowers have complicated many credit decisions and changed the way we think about underwriting models.

Many banking organizations need to merge to meet the new tougher regulatory expectations and compete with non-banks. But mergers are now becoming tougher, not easier. Are regulators tilting the playing field so much that healthy market forces will be frustrated to the detriment of sound bank operation?

Many banking organizations need to merge to meet the new tougher regulatory expectations and compete with non-banks. But mergers are now becoming tougher, not easier. Are regulators tilting the playing field so much that healthy market forces will be frustrated to the detriment of sound bank operation?

The removal of preemption would lead to regulatory uncertainty, stifle innovation, and ultimately harm the competitiveness of the U.S. financial system.

The removal of preemption would lead to regulatory uncertainty, stifle innovation, and ultimately harm the competitiveness of the U.S. financial system.

Restrictive regulations may be stifling US FinTech companies, hindering economic growth, and putting American consumers and businesses at a disadvantage. Is it time to rethink the approach?

The ability of the Office of the Comptroller of the Currency to preempt state banking laws on behalf of nationally chartered banks must be preserved, writes former U.S. Comptroller of the Currency Eugene Ludwig.

The ability of the Office of the Comptroller of the Currency to preempt state banking laws on behalf of nationally chartered banks must be preserved, writes former U.S. Comptroller of the Currency Eugene Ludwig.

As January fades and the one-year anniversary of the most-recent banking crisis casts a long shadow, American financial institutions find themselves staring down a turbulent 2024.

As January fades and the one-year anniversary of the most-recent banking crisis casts a long shadow, American financial institutions find themselves staring down a turbulent 2024.

In Part 1, Gene Ludwig unravels the intricate web of factors behind last spring's disastrous bank failures — technological manipulation exploited regulatory gaps, sparking panic and triggering collapse. In Part 2, Gene moves beyond the post-mortem and into proactive defense, taking up the tools to build a financial future more resilient against tomorrow's tremors.

In Part 1, Gene Ludwig unravels the intricate web of factors behind last spring's disastrous bank failures — technological manipulation exploited regulatory gaps, sparking panic and triggering collapse. In Part 2, Gene moves beyond the post-mortem and into proactive defense, taking up the tools to build a financial future more resilient against tomorrow's tremors.

The Spring 2023 bank runs sent shockwaves through the financial system and gave us a terrifying glimpse into a new era of systemic risk. In a new two-part op-ed, Gene Ludwig dissects these novel vulnerabilities, suggesting limitations in our current regulatory framework and outlining steps for a more dynamic and adaptable system.

The Spring 2023 bank runs sent shockwaves through the financial system and gave us a terrifying glimpse into a new era of systemic risk. In a new two-part op-ed, Gene Ludwig dissects these novel vulnerabilities, suggesting limitations in our current regulatory framework and outlining steps for a more dynamic and adaptable system.

The drift from fundamental safety-and-soundness analysis to rigid views of how a bank must be managed, if left unchecked, will contribute to a diminution in the importance of the banking industry in the American financial landscape and a failure to appreciate the vital role banks of different types play in meeting the economic needs of consumers and businesses alike.

The drift from fundamental safety-and-soundness analysis to rigid views of how a bank must be managed, if left unchecked, will contribute to a diminution in the importance of the banking industry in the American financial landscape and a failure to appreciate the vital role banks of different types play in meeting the economic needs of consumers and businesses alike.

We need nuanced regulation and supervisory practices that recognize the distinct qualities of each enterprise being supervised. By doing so, we can preserve one of the special strengths of the U.S. economy.

We need nuanced regulation and supervisory practices that recognize the distinct qualities of each enterprise being supervised. By doing so, we can preserve one of the special strengths of the U.S. economy.

The United States is blessed with banks of all sizes, each tailored to fit the needs of our diverse economy. However, policymakers have come to underappreciate the importance of mid-sized banks to the economy — banks with asset sizes ranging from $10 billion to $700 billion.

The United States is blessed with banks of all sizes, each tailored to fit the needs of our diverse economy. However, policymakers have come to underappreciate the importance of mid-sized banks to the economy — banks with asset sizes ranging from $10 billion to $700 billion.

One of America’s great economic strengths is allowing, if not encouraging, the diversity of American banking. The spring's banking crisis and how it ultimately is dealt with by Congress and regulators could well undermine this structure and with it, large parts of the American economy.

One of America’s great economic strengths is allowing, if not encouraging, the diversity of American banking. The spring's banking crisis and how it ultimately is dealt with by Congress and regulators could well undermine this structure and with it, large parts of the American economy.