Regulation

Researchers wonder if similar regulatory attention could eventually hit the bottom lines of independent broker-dealers and RIAs.

The guidance largely matches last summer's proposal, with clarifications around least-cost determinations, foreign bank resolutions and resolution strategies. Regulators also gave banks more time to file their living wills under the new framework.

The Biden Administration firmly rejects proposed cuts to key financial oversight and consumer protection agencies in the Republican-backed financial services appropriations bill for fiscal year 2025.

The court didn't rule on the merits of any regulation, but made it much easier to challenge rules governing banking.

The trade groups said Friday that a proposed rule from CISA would burden firms with overly broad reporting requirements as they scramble to respond to incidents.

The Treasury Department's Financial Crimes Enforcement Network issued a proposal mandating banks enhance their anti-money-laundering and counterterrorism financing programs, including measures to address fentanyl trafficking and Russian money laundering.

Large and regional banks again proved their resiliency in the Fed's annual exams. But analysts noted that a few lenders faced some negative surprises — a development that may scuttle investor hopes for share buybacks by those banks.

The Federal Reserve attributes the uptick in simulated losses in this year's stress test examination to heightened risks on bank balance sheets and higher expense levels. Credit cards and corporate lending were top areas of concern for the central bank.

Four large banks were dinged in their resolution plan reviews for shortcomings in their plans to unwind their derivatives positions in times of stress. But whether the problem is with the banks' plans or the regulators' expectations for a legally ambiguous product is a matter of debate.

A plan reportedly being floated by the Federal Reserve would reduce the top-line capital raise for the biggest banks by as little as 5% — down from 16% in the original proposal from last July.