News

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.

The banking industry is expected to win big as former President Donald Trump returns to the White House, ushering in Republican regulators who are expected to ease capital rules and merger approvals, industry experts and analysts said.

The banking industry is expected to win big as former President Donald Trump returns to the White House, ushering in Republican regulators who are expected to ease capital rules and merger approvals, industry experts and analysts said.

Wall Street executives by and large are looking forward to business-friendly regulations as they analyze the implications of a second Donald Trump presidency, while some bankers were immediately tasked with discussing potential deals.

Wall Street executives by and large are looking forward to business-friendly regulations as they analyze the implications of a second Donald Trump presidency, while some bankers were immediately tasked with discussing potential deals.

Finance industry steps up effort to further undermine Basel III endgame after winning major concessions on terms.

Finance industry steps up effort to further undermine Basel III endgame after winning major concessions on terms.

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.

"Attempts by states to deprive national banks, consumers, and businesses of a uniform set of standards and practices is anti-free market, anti-consumer, and contrary to the safe and sound operation of national banks,” said Ludwig and Dugan.

"Attempts by states to deprive national banks, consumers, and businesses of a uniform set of standards and practices is anti-free market, anti-consumer, and contrary to the safe and sound operation of national banks,” said Ludwig and Dugan.

Two landmark decisions by the U.S. Supreme Court have handed the banking industry a potent judicial weapon against regulatory overreach. Is that a good thing?

Two landmark decisions by the U.S. Supreme Court have handed the banking industry a potent judicial weapon against regulatory overreach. Is that a good thing?

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.

Cash flow underwriting has long been a hit with fintechs. Understanding how money flows in and out of a consumer's bank account or brokerage account, many feel, gives a clearer perspective on a potential borrower's financial picture and ability to repay a loan than does the traditional bank loan decision system, which relies heavily on a person's FICO score and select pieces of credit bureau data that are often a few months old.

Cash flow underwriting has long been a hit with fintechs. Understanding how money flows in and out of a consumer's bank account or brokerage account, many feel, gives a clearer perspective on a potential borrower's financial picture and ability to repay a loan than does the traditional bank loan decision system, which relies heavily on a person's FICO score and select pieces of credit bureau data that are often a few months old.

Just months after the shocking unraveling of Silicon Valley Bank and First Republic Bank last year, Michael Barr unveiled a new set of guardrails for the US’s biggest lenders and an uncompromising defense of why they were needed.

Just months after the shocking unraveling of Silicon Valley Bank and First Republic Bank last year, Michael Barr unveiled a new set of guardrails for the US’s biggest lenders and an uncompromising defense of why they were needed.

Federal preemption, long a flash point in financial services, has been a pretty staid policy area in recent years. That’s now changing in a big way — creating headaches for financial firms – as both red and blue state politicians target the industry with a series of new legal requirements, often tied up in the culture wars.

Federal preemption, long a flash point in financial services, has been a pretty staid policy area in recent years. That’s now changing in a big way — creating headaches for financial firms – as both red and blue state politicians target the industry with a series of new legal requirements, often tied up in the culture wars.

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.

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?

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?

RegFi co-hosts Jerry Buckley and Caroline Stapleton welcome Eugene Ludwig to discuss the decline in economic opportunities for middle- and low-income Americans.

RegFi co-hosts Jerry Buckley and Caroline Stapleton welcome Eugene Ludwig to discuss the decline in economic opportunities for middle- and low-income Americans.

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?

After the economic carnage of the global financial crisis in 2008, a new US government agency was formed to centralize consumer protection and guard against corporate wrongdoing that affects individuals. As part of its series on economic populism and banks, American Banker explores how the CFPB interacts with this idea of government protecting people from business.

After the economic carnage of the global financial crisis in 2008, a new US government agency was formed to centralize consumer protection and guard against corporate wrongdoing that affects individuals. As part of its series on economic populism and banks, American Banker explores how the CFPB interacts with this idea of government protecting people from business.

After nearly three decades of intense consolidation, is it time to reassess the benefits of mergers and acquisitions?

After nearly three decades of intense consolidation, is it time to reassess the benefits of mergers and acquisitions?

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.

America’s regulators are proposing a regime that is stricter than the globally agreed standard, provoking a backlash from its banks.

America’s regulators are proposing a regime that is stricter than the globally agreed standard, provoking a backlash from its banks.

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 regulatory environment has changed since the 2023 bank failures. Supervision has become more intrusive and banks need to place more emphasis on communication and responsiveness.

The regulatory environment has changed since the 2023 bank failures. Supervision has become more intrusive and banks need to place more emphasis on communication and responsiveness.

The fintech revolution has been more successful at working with banks than at trying to replace them, points out Gene Ludwig. Those with "must have" products will fare far better in 2024 than those with "nice to have" tools, he says.

The fintech revolution has been more successful at working with banks than at trying to replace them, points out Gene Ludwig. Those with "must have" products will fare far better in 2024 than those with "nice to have" tools, he says.

If you were looking for someone to weigh in on bank regulators' ability to keep up with advances in technology, you'd have trouble finding anyone better informed, and holding clearer opinions, than Eugene Ludwig. In an interview just before the new year started, Ludwig reflected on the struggles fintechs have had in the past year and what lies ahead for banks and fintechs in 2024.

If you were looking for someone to weigh in on bank regulators' ability to keep up with advances in technology, you'd have trouble finding anyone better informed, and holding clearer opinions, than Eugene Ludwig. In an interview just before the new year started, Ludwig reflected on the struggles fintechs have had in the past year and what lies ahead for banks and fintechs in 2024.

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.

Banking supervisors need to focus on the “big issues” of safety and soundness and get away from trying to manage banks, former Comptroller of the Currency Eugene Ludwig said. Ludwig, who led the OCC from 1993 to 1998, was one of four panelists who took part in a discussion on the market outlook for the banking sector during The Clearing House’s annual conference in New York City.

Banking supervisors need to focus on the “big issues” of safety and soundness and get away from trying to manage banks, former Comptroller of the Currency Eugene Ludwig said. Ludwig, who led the OCC from 1993 to 1998, was one of four panelists who took part in a discussion on the market outlook for the banking sector during The Clearing House’s annual conference in New York City.

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.

Ludwig Advisors Founder and CEO Gene Ludwig sat down with Directors Briefing to talk about the events that shook the industry in the spring of 2023. He urged directors to keep asking management the hard questions.

Ludwig Advisors Founder and CEO Gene Ludwig sat down with Directors Briefing to talk about the events that shook the industry in the spring of 2023. He urged directors to keep asking management the hard questions.

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.

Ludwig Advisors, a Washington, D.C.-based advisory firm specializing in strategic regulatory and risk management consulting for the financial services industry, announced they’ve welcomed banking-industry veteran James J. Hilton as partner.

Having spent more than four decades in the banking and financial regulatory arena, Gene Ludwig knows a bit about crises, panics, and runs. Perhaps more importantly, he thinks a lot about how to fix them. So we dialed up the former comptroller of the currency to get his thoughts on the turmoil sparked by the failures of Silicon Valley and Signature banks.

Having spent more than four decades in the banking and financial regulatory arena, Gene Ludwig knows a bit about crises, panics, and runs. Perhaps more importantly, he thinks a lot about how to fix them. So we dialed up the former comptroller of the currency to get his thoughts on the turmoil sparked by the failures of Silicon Valley and Signature banks.

Extending the timeframe further for potential buyers to bid on Silicon Valley Bridge Bank’s assets would help the FDIC secure a larger return on the sale process, sources close to the auction process say.

Extending the timeframe further for potential buyers to bid on Silicon Valley Bridge Bank’s assets would help the FDIC secure a larger return on the sale process, sources close to the auction process say.

Former Comptroller of the Currency Gene Ludwig tells Alix Steel and Guy Johnson that U.S. financial regulation needs to be upgraded and updated.

Former Comptroller of the Currency Gene Ludwig tells Alix Steel and Guy Johnson that U.S. financial regulation needs to be upgraded and updated.

In the previous financial crisis, the nation’s biggest banks were the villains. This time, they may be the heroes. Wall Street titans whose actions once angered voters on the right and left have become safe havens for anxious Americans and a source of financial backing for wounded institutions.

In the previous financial crisis, the nation’s biggest banks were the villains. This time, they may be the heroes. Wall Street titans whose actions once angered voters on the right and left have become safe havens for anxious Americans and a source of financial backing for wounded institutions.

Romaine Bostick & Katie Greifeld bring you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street and tackles the bank turmoil, private markets and March Madness.

Romaine Bostick & Katie Greifeld bring you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street and tackles the bank turmoil, private markets and March Madness.

If regulators have their way, the bridge banks formed after the failures of Silicon Valley Bank and Signature Bank will be sold sooner rather than later.

If regulators have their way, the bridge banks formed after the failures of Silicon Valley Bank and Signature Bank will be sold sooner rather than later.

Bank regulators rolled out several tools from their tool kit to try to stem a financial crisis this week, but problems remain. The joint announcements followed the Friday closure of Silicon Valley Bank and the surprise Sunday evening closure of Signature Bank.

Bank regulators rolled out several tools from their tool kit to try to stem a financial crisis this week, but problems remain. The joint announcements followed the Friday closure of Silicon Valley Bank and the surprise Sunday evening closure of Signature Bank.

When prominent businesses and investors started pulling their money out of Silicon Valley Bank over concerns about the bank's solvency, word spread fast on Twitter. “Run on the bank!” entrepreneur Kim Dotcom posted in a March 12 tweet that was viewed by 2.4 million people and retweeted nearly 3,500 times.

When prominent businesses and investors started pulling their money out of Silicon Valley Bank over concerns about the bank's solvency, word spread fast on Twitter. “Run on the bank!” entrepreneur Kim Dotcom posted in a March 12 tweet that was viewed by 2.4 million people and retweeted nearly 3,500 times.