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The new requirement would bring large regional banks more in line with the largest global banks, which already have their own debt requirement. The proposal follows a tumultuous spring for regional banks, which saw three collapse, forcing regulators to backstop deposits to stave off a broader panic. The proposal would mean banks have to raise their long-term debt issuance by roughly 25%, or $70 billion, according to the FDIC. “These banks will have to go into the market issuing capital to meet the capital proposal and then issuing long-term debt to meet the long-term debt proposal," said Matthew Bisanz, a partner at Mayer Brown. The proposed rules were approved by the FDIC at a meeting Tuesday, giving the industry the opportunity to critique the approach.

Persons: Brian Snyder, Martin Gruenberg, Matthew Bisanz, Mayer Brown, Gruenberg, JPMorgan Chase, Ian Katz, ” Rob Nichols, Pete Schroeder, Megan Davies, Philippa Fletcher, Andrea Ricci Organizations: First Republic Bank, REUTERS, Rights, U.S, Federal Deposit Insurance Corporation, FDIC, Financial Services Group Inc, Fifth Third Bancorp, Citizens Financial, Silicon Valley Bank, JPMorgan, FDIC's, Insurance Fund, Capital Alpha Partners, Federal Reserve, American Bankers Association, Thomson Locations: Boston , Massachusetts, U.S, Silicon

REUTERS/Kevin Lamarque/File Photo Acquire Licensing RightsWASHINGTON, Aug 29 (Reuters) - A top U.S. banking regulator is set on Tuesday to propose heightened rules to ensure regional banks can be safely dissolved in times of stress. Now, regulators are looking to toughen their rules, particularly for regional banks like PNC Financial Services Group Inc and Citizens Financial Group Inc."The failure of three large regional banks this spring...demonstrated clearly the risk to financial stability that large regional banks can pose," said FDIC Chairman Martin Gruenberg in a speech earlier this month previewing the proposals. The regulator is also set to propose an overhaul to "living will" rules for banks, which require firms to detail how they could be safely taken apart after failing. As banks failed last spring, the FDIC was unable to find immediate buyers for some firms, such as Silicon Valley Bank. The banking industry is already pushing back against the upcoming proposal and similar efforts, calling them unjustified and economically harmful.

Persons: Martin Gruenberg, Kevin Lamarque, Gruenberg, JPMorgan Chase, Ian Katz, ”, Rob Nichols, Pete Schroeder, Megan Davies, Andrea Ricci Organizations: Deposit Insurance, Financial, Valley Bank, Signature Bank, Capitol, REUTERS, Rights, Federal Deposit Insurance Corporation, Financial Services Group Inc, Citizens Financial, Inc, FDIC, Silicon Valley Bank, First Republic Bank, JPMorgan, FDIC’s, Insurance Fund, Capital Alpha Partners, American Bankers Association, Thomson Locations: Washington , U.S, Silicon

☆ From School Bells to Wedding Bells
▼ + stars: | 2023-08-24 | by ( Emma Grillo | ) www.nytimes.com time to read: +1 min

Late one night in October 2018, Max Ujdak and Katie Wall — now Katie Ujdak — were sitting in front of a computer, staring at the website for the Basilica of the Sacred Heart, a Catholic church at the University of Notre Dame in Indiana and a popular wedding venue. At midnight, the couple would be able to submit a digital form ranking their wedding date preferences for a ceremony at the Basilica, where reservations open on a two-year rolling calendar. The two were hoping for a 3 p.m. slot on Oct. 24, 2020. They submitted the form when the clock struck midnight, and sometime later, they received a confirmation from the church for their preferred date, with a 1 p.m. slot. “We’re like, OK, now we have a wedding venue, but we’re not engaged,” Ms. Ujdak, 27, said.

Persons: Max Ujdak, Katie Wall —, Katie Ujdak —, we’re, ” Ms, Ujdak, ” Organizations: University of Notre Dame Locations: Indiana

Global shares were stuck around two-month lows and Wall Street indexes closed nearly flat and narrowly mixed. Yields on benchmark 10-year U.S. Treasuries stepped back after flirting with 16-year highs earlier in the week. Investors expected the Fed may hold interest rates higher for longer as the U.S. economy continued to show strength. Attention now turns to the Fed and other top central banks' annual gathering in Jackson Hole, Wyoming. Investors will scrutinise a speech from Fed Chair Jerome Powell next Friday for clues about the interest rate outlook.

Persons: Brendan McDermid, Jackson Hole WASHINGTON, Treasuries, Blake Emerson, Jerome Powell, Powell, Brent, Toby Chopra, Mark Potter, Nick Macfie, Diane Craft, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Jackson, Treasury, Federal Reserve, Global, Dow Jones, Nasdaq, JP Morgan Private Bank, Federal, Securities, U.S, Thomson Locations: New York City, U.S, Jackson Hole, Jackson Hole , Wyoming, Japan

[1/3] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 24, 2023. Benchmark 10-year yields reached 4.312% in trading and tested October's 4.338%, before moving lower to 4.29%. Tighter credit conditions will eventually dampen economic activity and markets are choppy from the uncertainty," said Jeffrey Roach, chief economist for LPL Financial. Wall Street was mixed in the first half of the trading day before accelerating losses as the session ended. Brent crude was up over 1% earlier in the day before settling up 0.35% at $83.74 a barrel.

Persons: Brendan McDermid, Yen, Jeffrey Roach, Bill Adams, Brent, Ankur Banerjee, Alun John, Anisha, Sonali Paul, Angus MacSwan, Chizu Nomiyama, Nick Macfie, Cynthia Osterman Organizations: New York Stock Exchange, REUTERS, Treasury, Federal, LPL Financial, Dow Jones, Nasdaq, U.S . Labor Department, Comerica Bank, Zhongzhi Enterprise Group, Thomson Locations: New York City, U.S, CHINA, China, China's, Singapore, London, Bengaluru

☆ Peter Loftus — Special Writer at The Wall Street Journal
▼ + stars: | 2023-08-17 | by ( Peter Loftus | ) www.wsj.com time to read: +1 min

Peter LoftusPeter Loftus is a reporter for The Wall Street Journal in Philadelphia covering the pharmaceutical and medical-device industries. He has written about Covid-19 vaccines, advances in cancer treatments, drug shortages and the use of mobile devices in healthcare. Peter is the author of "The Messenger: Moderna, the Vaccine, and the Business Gamble That Changed the World," published in 2022 by Harvard Business Review Press. Before joining the Journal in 2013, he was a reporter for Dow Jones Newswires since 1997, covering the pharmaceutical and technology industries. He previously worked as a courthouse reporter at the Reporter newspaper in Lansdale, Pa.

Persons: Peter Loftus Peter Loftus, Peter, Dow Jones Newswires Organizations: Wall Street, Harvard Business Review Press, Reporter, University of Notre Dame Locations: Philadelphia, Lansdale, Pa

☆ What is the LK-99 superconductor? Everyone is talking about how it could change the world, but experts say we're still a long way off
▼ + stars: | 2023-08-04 | by ( Sindhu Sundar | Jenny Mcgrath | ) www.businessinsider.com time to read: +8 min

South Korean scientists claim to have made a superconductor, LK-99, that works at room temperature. But electricity that travels along a superconductor barely loses energy along the way. That's the premise behind LK-99, a possible superconductor material that scientists in South Korea say they have devised, which has been dominating headlines and social media posts in the past week or so. To that end, some experts are trying, but this holy grail has eluded scientists for many years, so the prospects are still a long way off, experts told Insider. "So low power energy chips is one major area in chip design."

Persons: Leonard Kahn, Kahn, Edwin Fohtung, Elif Akçalı, Akçalı, it's, Meissner, we're, Siddharth Joshi, Joshi, Navid Asadi, Asadi, Dale Rogers Organizations: Service, Department of Physics, University of Rhode Island's College, Rensselaer Polytechnic Institute, University of Florida, University of Notre Dame, Arizona State University Locations: Wall, Silicon, South Korea

July 31 (Reuters) - The American Civil Liberties Union (ACLU) filed a lawsuit on Monday on behalf of Oklahoma residents asking a state judge to block the creation of the nation's first religious public charter school. Oklahoma's Statewide Virtual Charter School Board, one of the defendants in the suit, in June approved the Catholic Church's application to create the St. Isidore of Seville Catholic Virtual School, which would use millions of dollars in taxpayer funds to operate. Rebecca Wilkinson, the executive director of the statewide virtual charter school board, said in an email that the agency would not comment on pending litigation. Charter schools are publicly funded and independently run under the terms of a charter with a local or national authority. Listed as plaintiffs in the lawsuit challenging St. Isidore are nine Oklahoma residents and the Oklahoma Parent Legislative Action Committee.

Persons: Isidore of, Isidore, Brett Farley, Farley, Ryan Walters, Walters, St, Rebecca Wilkinson, Gentner Drummond, Brad Brooks, Donna Bryson, Bill Berkrot, Deepa Babington Organizations: American Civil Liberties Union, ACLU, Charter School Board, Isidore of Seville Catholic Virtual School, Catholic Conference of Oklahoma, U.S, Supreme, Republican, Oklahoma, Catholic, Catholic Archdiocese of, Catholic Archdiocese of Oklahoma City, University of Notre Dame, The ACLU, Americans United, and State, Education Law Center, Religion Foundation, Thomson Locations: Isidore of Seville, Oklahoma, U.S ., Maine and Montana, St, Catholic Archdiocese of Oklahoma, Indiana, Lubbock , Texas

The rule, which would implement a 2017 agreement by global regulators, aims to overhaul how banks gauge their riskiness, and in turn how much money they must keep on hand. Industry opponents have already begun to criticize the plan as banks seek to soften, delay, or otherwise derail the government's long-planned effort. The proposal would see U.S. regulators implement a previous global agreement via the Basel Committee on Banking Supervision. "Bank capital is critical," said Dennis Kelleher, president and CEO of Better Markets, which advocates for tougher financial rules. "However, maximizing Wall Street’s bonuses depends on minimizing capital and that’s why Wall Street fights to prevent regulators from requiring them to have enough capital."

Persons: it’s, Ian Katz, JPMorgan Chase, Morgan Stanley, Michael Barr, Barr, Joe Biden, Dennis Kelleher, Pete Schroeder, Susan Heavey Organizations: Federal Deposit Insurance Corporation, Federal, Industry, Washington, Capital Alpha Partners, JPMorgan, Banking Supervision, Citizens Financial, Bank, Better, Thomson Locations: U.S, Basel, Huntington, that’s

[1/3] FILE PHOTO: A sign is displayed on the Morgan Stanley building in New York U.S., July 16, 2018. REUTERS/Lucas Jackson/File PhotoNEW YORK, July 25 (Reuters) - U.S. banking giants may take up to four years to set aside profits to meet new capital rules, according to a report by Morgan Stanley. U.S. banking regulators will on Thursday unveil a sweeping proposal for stricter bank capital requirements known as the "Basel III endgame" aimed at ensuring the stability of big banks under international rules rolled out after the 2008 financial crisis. Holding more RWA will require banks to set aside more capital under the new standards. Most of the need to raise capital would come from assessments of the bank's operational risks and their trading books.

Persons: Morgan Stanley, Lucas Jackson, Betsy Graseck, Goldman Sachs, JPMorgan Chase, Morgan, Michael Barr, Tatiana Bautzer, Pete Schroeder, Lananh Nguyen, Chris Reese Organizations: New York U.S, REUTERS, Citigroup, JPMorgan, Bank of America, Federal, Federal Reserve, Federal Deposit Insurance Corporation, Thomson Locations: New York, Basel, Washington

That special fee, which the FDIC proposed in May, would be assessed based on their uninsured deposits at the end of 2022. The regulator said some banks were "not reporting estimated uninsured deposits in accordance with the instructions." A July 6 report by S&P Global noted 55 banks restated their fourth-quarter uninsured deposits in FDIC reports, more than twice the norm. Specifically, the FDIC reminded banks they must report uninsured deposits backed by pledged assets as well as uninsured deposits held at their own subsidiaries. “Earlier this year, we identified certain internal or intra-bank accounts that shouldn’t have been reported,” Bank of America spokesman Bill Halldin said.

Persons: Zions, Paul Burdiss, Bill Halldin, Bank spokespeople, Niket, Pete Schroeder, Tatiana Bauzer, Shweta Agarwal, Megan Davies Organizations: U.S, Federal Deposit Insurance Corporation, Valley Bank, FDIC, P Global, Bank of America, ” Bank of America, P, Huntington National Bank, Bank, Bank Policy Institute, Thomson Locations: Bengaluru, Washington

☆ '4chan for economists' is melting down as racist, sexist anonymous posts are linked to Harvard, Yale, and other top institutions
▼ + stars: | 2023-07-21 | by ( Kate Taylor | ) www.businessinsider.com time to read: +12 min

A new study links anonymous posts on "4chan for economists" to IP addresses at Harvard, Yale, and other top schools. Other snippets of posts with IP addresses at Harvard, Stanford, Yale, University of Chicago, and the National Bureau of Economic Research headquarters include: "Rapefugees Welcome!!!!! Other snippets of posts with IP addresses at Harvard, Stanford, Yale, University of Chicago, and the National Bureau of Economic Research headquarters include: "Rapefugees Welcome!!!!! Notre Dame IP addresses made up 3.4% of posts from a research-institution IP address. According to Ederer, it took just 15 minutes to figure out how to connect usernames with IP addresses.

Persons: Anya Samek, Samek, EJMR, Boston University's Florian Ederer, Yale's Paul Goldsmith, Pinkham, Kyle Jensen, Ederer, Christina Romer, Scott Cunningham, Rob Seamans, Merkel, bubba, Trevon Logan, that's, She's Organizations: Harvard, Yale, North American Economic Science Association Conference, University of Chicago, undergrad, National Bureau of Economic Research, American Economics Association, Baylor, Marvel, Stanford, University of Notre Dame, Columbia, Notre Dame, Ohio State University, UMass Amherst, University of California Locations: Tucson , Arizona, Cambridge , Massachusetts, Ederer, Erdogan's Turkey, troon, Samek, San Diego

The proposal, which will kick off an ambitious agenda for Barr, plans to fully implement the globally agreed Basel bank capital agreement. BANKING OPPOSITIONThe banking industry is not waiting for details before trying to disrupt the effort, arguing it could hinder economic activity, curb lending, and kill lines of business. The criticism is also emerging among some Republican bank regulators, who appear likely to oppose the plans. Regulators will have to digest numerous and voluminous comments from the banking industry dissecting their plans. And in the meantime, banks are expected to continue hammering that higher capital requirements means a smaller economic role for banks and are not needed.

Persons: Michael Barr, Barr, Michael Barr's, Isaac Boltansky, Spokespeople, Kevin Fromer, Jerome Powell, Powell, Republican Andy Barr, Bill Foster, Tim Scott, Michelle Bowman, Barr's, Morgan Stanley, James Gorman, Pete Schroeder, Megan Davies, Andrea Ricci Organizations: Banking, Fed, Federal Deposit Insurance Corporation, Office, FDIC, Financial Services, Financial Services Committee, Republican, Senate, Committee, Regulators, White, Thomson Locations: Basel

WASHINGTON, July 19 (Reuters) - The Federal Reserve said on Wednesday it fined Deutsche Bank and its U.S. affiliates $186 million for failing to sufficiently address money laundering and other shortcomings flagged by the U.S. central bank. The Fed identified the previous issues in 2015 and 2017 consent orders, which stemmed from deficient controls in Deutsche's relationship with the Estonian branch of Danske Bank which ended in 2015. In December, Danske Bank pleaded guilty to a bank fraud conspiracy and agreed to forfeit $2 billion to settle a long-running Department of Justice probe into billions of dollars of illicit payments. In its latest order, the Fed said it found a "significant portion" of the $276 billion in transactions Deutsche cleared for Danske involved "high-risk non-resident customers." Shortcomings in Deutsche's policies on money laundering persisted after its relationship with Danske ended in 2015, the Fed said.

Persons: Biden, Danske, Pete Schroeder, Richard Chang Organizations: Federal, Deutsche Bank, U.S, Fed, Danske Bank, of Justice, Danske, Thomson Locations: Estonian, Estonia, Russia

☆ ‘Forever chemicals’ in water: Nearly half of the tap water in the US is contaminated with PFAS, government study finds
▼ + stars: | 2023-07-05 | by ( Jen Christensen | ) edition.cnn.com time to read: +8 min

CNN —Almost half of the tap water in the United States is contaminated with chemicals known as “forever chemicals,” according to a study from the US Geological Survey. Experts say it’s important for people to understand their risk of exposure through tap water. Water filters may help somewhat if tap water is contaminated, and there are moves to regulate some PFAS chemicals in US drinking water. This US Geological Survey map shows the number of PFAS detected in tap water samples from select sites across the nation. In August 2023, the EPA said it is conducting the “most comprehensive monitoring effort for PFAS ever” at large and midsize public water systems and hundreds of small water systems.

Persons: Jamie DeWitt, There’s, ”, DeWitt, They’re, Graham Peaslee, Dr, Sanjay Gupta, “, Peaslee, ” Peaslee Organizations: CNN, Geological Survey, National Institutes of Health, US Environmental Protection Agency, Survey, Eastern Seaboard, Environmental Health Sciences, Oregon State University’s College of Agricultural Sciences, Utilities, EPA, of Physics, University of Notre Dame, CNN Health Locations: United States, Great, Central, Southern California

Banks' commercial real estate portfolios performed better than expected, showing $65 billion in losses or 8.8% of average loan losses, slightly down on last year's 9.8%, the Fed said. "Some may ask how all the banks can get a regulatory thumbs-up when the industry just went through a period of turmoil. The test assesses whether banks would stay above the required minimum 4.5% capital ratio. The average capital ratio for the 23 banks was 10.1%, the Fed said. That compares with 9.7% last year, when the central bank tested 34 lenders against a slightly easier scenario.

Persons: Morgan Stanley, Goldman Sachs, Charles Schwab, Michael Barr, ” Barr, Banks, Barr, Lindsey Johnson, Dennis Kelleher, Ian Katz, Pete Schroeder, Caroline Valetkevich, Deepa Babington, Stephen Coates Organizations: Federal, JPMorgan Chase, Bank of America, Citigroup, Charles Schwab Corp, Deutsche Bank's, Financial Corp, U.S . Bancorp, Valley Bank, Wells, JPMorgan, Industry, Consumer Bankers Association, U.S, Treasury, T Bank, PNC Financial, Citizens Financial, Better, Fed, Capital Alpha Partners, Thomson Locations: Big U.S, Wells Fargo, U.S

Under the "stress test" exercise, the Fed tests big banks' balance sheets against a hypothetical severe economic downturn, the elements of which change annually. WHY DOES THE FED 'STRESS TEST' BANKS? It announces the size of each bank's stress capital buffer in the subsequent months. For example, the 2022 stress test envisioned a 5.8 percentage point jump in unemployment under a "severely adverse" scenario. This extra test will not count towards banks' capital requirements but will allow the Fed to explore applying multiple adverse scenarios in future.

Persons: Banks, Wells, Goldman Sachs, Morgan Stanley, Michael Barr, Pete Schroeder, Michelle Price, Andrea Ricci Organizations: U.S . Federal, Big, Fed, Citigroup, Bank of America, JPMorgan Chase &, Goldman Sachs, Deutsche Bank's U.S, JPMorgan Citigroup, Wells Fargo & Co, Bank, U.S, Treasury, Thomson Locations: Big U.S, Silicon

Under the "stress test" exercise, the Fed tests banks' balance sheets against a hypothetical severe economic downturn, the elements of which change annually. WHY DOES THE FED "STRESS TEST" BANKS? It typically publishes aggregate industry losses, and individual bank losses including details on how specific portfolios - like credit cards or mortgages - fared. It announces the size of each bank's stress capital buffer in the subsequent months. For example, the 2022 stress test envisioned a 5.8 percentage point jump in unemployment under a "severely adverse" scenario.

Persons: Banks, Wells, Goldman Sachs, Morgan Stanley, Michael Barr, Pete Schroeder, Michelle Price, Andrea Ricci Organizations: U.S . Federal, Fed, Citigroup, Bank of America, JPMorgan Chase &, Goldman Sachs, Deutsche Bank's U.S, JPMorgan Citigroup, Wells Fargo & Co, Bank, U.S, Treasury, Thomson Locations: Silicon

The central bank on Wednesday will release the results of its bank "stress tests" which assess how much capital banks would need to withstand a severe economic downturn. The annual exercise, introduced following the 2007-2009 financial crisis, is integral to banks' capital planning, dictating how much cash they can return to shareholders via dividends and share buybacks. Despite the turmoil, and the exam being the hardest in years, bank analysts and executives expect the 23 lenders being tested will show capital in excess of regulatory minimums. While that will not affect capital, it will be used to assess potentially employing multiple scenarios in future stress test exercises. "In an environment of ever-changing risks, stress tests can quickly lose their relevance if their assumptions and scenarios remain static," said Barr in December.

Persons: Nick Zieminski WASHINGTON, JPMorgan Chase, Goldman, Morgan Stanley, jitters, Wells, Jefferies, Randal Quarles, Michael Barr, Barr, Pete Schroeder, Michelle Price, Deepa Babington Organizations: Citibank, REUTERS, Big U.S, Bank, U.S, Treasury, Citigroup Inc, Bank of America, JPMorgan, Goldman Sachs, Capital, U.S . Bancorp, Citizens, Fed, Bank Policy Institute, RBC, Thomson Locations: Jackson, Queens, New York City, U.S, Big, Silicon, Wells Fargo, Washington

WASHINGTON, June 22 (Reuters) - The head of the Federal Deposit Insurance Corporation said Thursday that bank regulators are considering applying an upcoming set of stricter capital rules to banks with over $100 billion in assets. "If we had any doubt that the failure of banks in this size category can have financial stability consequences, that has been answered by recent experience," he said in prepared remarks. "The lesson to take away is that banks in this size category can pose genuine financial stability risks." He added agencies will propose new capital rules to implement an international bank rule agreement in the near future, but will likely not complete the rules before the middle of 2024. But Gruenberg argued it was critical, particularly in the wake of the spring bank failures, for regulators to get tougher rules in place.

Persons: Martin Gruenberg, Gruenberg, Pete Schroeder, Nick Zieminski Organizations: Federal Deposit Insurance Corporation, Thomson Locations: Basel, U.S

Bank regulators led by the U.S. Federal Reserve are finalizing the proposal which would implement international capital standards agreed by the Basel Committee on Banking Supervision in the aftermath of the 2007-2009 financial crisis. On Wednesday, Fed Chair Jerome Powell told Congress it was critical banks have strong capital, but regulators must be mindful of the tradeoffs. Republican officials at the agencies have flagged similar concerns, two people said, while Republican lawmakers on Wednesday also raised worries over capital rules with Powell. The Fed is drafting the Basel rules with the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corp. (FDIC). Speaking to reporters last week, acting Comptroller Michael Hsu said banks had "not been shy about sharing their concerns" which regulators were taking into account.

Persons: Morgan Stanley, Andrew Kelly, Jerome Powell, Michael Barr, Isaac Boltansky, jitters, Powell, “, Kevin Fromer, It's, Michael Hsu, Pete Schroeder, Niket Nishant, Lananh Nguyen, Tatiana Bautzer, Michelle Price, David Gregorio Organizations: New York Stock Exchange, REUTERS, WASHINGTON, Bank, U.S . Federal, Banking, Bankers, Committee, American Express, U.S, UBS, Deutsche Bank, Barclays, Washington, Bank Policy Institute, WALL, Fed, Industry, Republican, Financial Services, Currency, Federal Deposit Insurance Corp, Regulators, FDIC, OCC, Thomson Locations: Manhattan , New York City, U.S, Basel, Silicon

WASHINGTON, June 21 (Reuters) - U.S. Federal Reserve Chair Jerome Powell on Wednesday said it is critical that banks have high levels of capital, but regulators must be mindful of the tradeoffs in ordering large reserves. Powell told the House Financial Services Committee that the Fed is considering multiple proposals on bank oversight, and struck a balanced tone on new capital requirements, saying healthy cushions are of "central importance," particularly for the largest global banks. We want banks to be able to lend in good and bad times," he said. Powell said the Fed has a "significant number of proposals in the works" on bank oversight, but none have been finalized or brought to the board for a vote yet. He also noted that higher capital requirements do come with tradeoffs, and the Fed will have to strike a balance between higher capital and how it could hinder bank lending.

Persons: Jerome Powell, Powell, Pete Schroeder, Mark Porter, Andrea Ricci Organizations: . Federal, Financial Services Committee, Fed, Thomson

[1/2] A U.S. flag flies outside a branch of the Silicon Valley Bank in Wellesley, Massachusetts, U.S., March 13, 2023. REUTERS/Brian SnyderWASHINGTON, June 20 (Reuters) - The U.S. Justice Department antitrust division plans to expand the scope of its bank merger review process, the department's chief said on Tuesday, in a sign the agency may get tougher when scrutinizing such deals. The comments are likely to disappoint the industry, which had been hoping Democratic President Joe Biden's administration would be more open to allowing deals after a spate of bank failures since March. Specifically, Kanter said any merger review for antitrust purposes must go beyond traditional factors like the impact on local depositors and branches, and consider a broader set of issues. "We believe this policy change will not be as negative for bank mergers as it may first appear," he added.

Persons: Brian Snyder WASHINGTON, Jonathan Kanter, Joe Biden's, Kanter, Biden, Isaac Boltansky, Cowen, Jaret Seiberg, Pete Schroeder, Deepa Babington, Michelle Price Organizations: Bank, REUTERS, U.S . Justice Department, Brookings Institution, Democratic, Justice Department, Silicon Valley Bank, DOJ, Thomson Locations: U.S, Wellesley , Massachusetts, Silicon

REUTERS/Brian SnyderWASHINGTON, June 20 (Reuters) - The head of the U.S. Justice Department's antitrust division on Tuesday urged the government to update bank merger guidelines to reflect "current market realities," in a sign authorities are likely to cast a wider net in scrutinizing deals in the sector. “There are good reasons ... to question whether the 1995 guidance sufficiently reflects current market realities," he said in a speech at the Brookings Institution, a think tank. "What we're saying is market realities have shifted, and when we apply the law, we have an obligation to ensure we are addressing the world as it exists today." President Joe Biden signed an executive order in 2021 directing the Justice Department to work with bank regulators to update merger guidelines and heighten scrutiny of deals. In his remarks, Kanter said he was focused on the antitrust implications of any bank mergers, and that broader factors were best left to the primary bank regulators to consider.

Persons: Brian Snyder WASHINGTON, Jonathan Kanter, Biden, Kanter's, Kanter, hasn't, Joe Biden, Pete Schroeder, Deepa Babington Organizations: Bank, REUTERS, U.S . Justice, Brookings Institution, Department, Justice Department, Silicon Valley Bank, Thomson Locations: U.S, Wellesley , Massachusetts, Silicon

☆ AI drive-thrus may be good for business. But not for the rest of us
▼ + stars: | 2023-06-17 | by ( Danielle Wiener-Bronner | ) edition.cnn.com time to read: +7 min

New AI technology at the drive-thru at a Carl's Jr. location. In real-world situations, reactions to AI drive-thrus are still mixed. “We expect AI to augment the competitive advantages of restaurants with digital culture.”Short-staffed restaurants may see AI as a way to fill in the gaps. “There aren’t enough at-scale examples of voice AI in action, especially in this use case,” to say that people would prefer AI to an employee, said McAllister. By the time those examples exist, AI in drive-thrus may already be the norm.

Persons: CKE, Carl’s Jr, Wendy’s, Joel Angel Juarez, it’s, ” Thomas Kurian, ”, Christina McAllister, Forrester, upsells, Krishna Gupta, Presto, “, Todd Penegor, Penegor, Yong Suk Lee, “ it’s, Brandon Bell, McAllister Organizations: New, New York CNN, Google, USA, Wall Street, Indiana White, Wall Street Journal, Presto Automation, CKE, Presto, Presto Voice, University of Notre Dame, Intouch Locations: New York, White, Wendy’s, Columbus , Ohio, The Republic

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