United States: Finance and Banking

The Conference of State Bank Supervisors has released a comprehensive AI Supervisory Framework designed to guide state examiners in assessing artificial intelligence use at financial institutions. This framework provides a detailed roadmap covering governance, risk management, and examination procedures, with particular emphasis on generative and agentic AI applications. Financial institutions should consider using this framework proactively to evaluate their AI readiness and prepare for regulatory examinat

When a bank restructures a classified asset, does it automatically lose its low-quality status under Regulation W? This analysis examines the strict requirements for removing low-quality asset designations and the critical role of independent examiner re-classification in determining whether banks can purchase restructured assets from affiliates.

When a bank pledges its own collateral to secure an affiliate's borrowing from a third-party lender, does this arrangement constitute a guarantee under Regulation W? The Federal Reserve's interpretation treats such pledges as covered transactions, with specific measurement rules that reflect the bank's actual exposure. Understanding how to properly classify and measure these arrangements is essential for compliance with quantitative limits.

David L. Zive and Jacob E. Trachtenberg examine the distressed note sale market from both buyer and seller perspectives, analyzing the legal and transactional frameworks that govern these complex transactions. The article provides practical guidance for navigating the current market landscape and understanding the key considerations in distressed debt transactions.

On September 23, the Colorado AG announced a settlement with a Colorado-licensed debt collection company resolving allegations concerning its collection of medical debt from Colorado consumers.

As AI infrastructure spending surges toward $697 billion in 2026, hyperscalers and compute providers are increasingly turning to debt, structured financing, and GPU-backed collateral to fund expansion. While demand projections remain bullish, a critical timing gap is emerging between capital deployment and cash flow generation, creating significant risks for lenders, sponsors, and operators across the ecosystem.

In California, solar operators leasing land for their projects face a critical risk: foreclosure by a junior lienholder could extinguish their lease and force premature project removal, potentially triggering defaults under revenue agreements. A simple yet often overlooked solution—recording a Memorandum of Lease—can protect the project from most foreclosures by establishing the lease's priority in the chain of title.

Establishes a committee of inquiry to investigate allegations that Federal Reserve Governor Lisa D. Cook made false statements in connection with mortgage instruments and to recommend whether...

A New York court examines whether a mortgage foreclosure action dismissed for lack of standing validly accelerated the loan debt, determining the application of statute of limitations rules when the original plaintiff lacked authority to bring suit. The decision addresses competing interpretations of CPLR §213(4)(b) and establishes precedent for when lenders may claim a mortgage was not validly accelerated.

The UK's Financial Conduct Authority has published final guidance on its new cryptoasset regime with a firm implementation timeline, while the US Senate has stalled legislative progress on the CLARITY Act, leaving American regulators to build their framework through existing authority. This divergence creates significant practical implications for financial firms operating across both jurisdictions, particularly regarding authorization pathways, compliance structures, and cross-border coordination.

The consumer reporting system is experiencing significant transformation driven by artificial intelligence, alternative data sources, and consumer-permissioned financial information sharing. This podcast episode explores how these technological and regulatory developments are reshaping credit underwriting, dispute resolution processes, and the broader consumer reporting ecosystem.

The Federal Reserve Board has published a comprehensive proposed rulemaking that would modernize Regulation O, which governs extensions of credit by banks to their insiders—executive officers, directors, and principal shareholders. The Proposal addresses decades of regulatory gaps by updating dollar thresholds for inflation, providing relief for passive fund complexes...