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Recent Editions
Risk Channel
North America
The Trump administration has scaled back its efforts to dismantle the Consumer Financial Protection Bureau, instead seeking court approval to cut more than half of its remaining workforce while keeping the agency operational. A new restructuring plan would reduce staff to 556 from around 1,200 earlier this year, following prior attempts to eliminate up to 90% of employees that were blocked by courts. The proposal includes deep cuts to key divisions such as supervision and enforcement, significantly limiting oversight of financial institutions and consumer protection activities. While the administration continues to push for a smaller agency, it has acknowledged that fully closing the bureau would require congressional approval, with the revised approach reflecting ongoing legal challenges and judicial intervention.
Full Issue
Risk Channel
UK/Europe
Some of the UK's leading lenders have expressed their frustrations with UK banking regulation in a new report from the Association for Financial Markets in Europe (AFME). The report criticises current capital requirements, saying that they misalign with actual risk and hinder economic growth. The AFME, which represents over 150 global banks, said the UK's leverage ratio is a "clear instance of gold-plating" that "penalises good risk management and creates incentives to invest in higher risk assets." The association has urged the Bank of England to reconsider the leverage ratio, saying a review by the Bank's Financial Policy Committee is "an important opportunity to improve the capital framework and enable the banking sector to further support the UK economy by removing excessive conservatism, while maintaining resilience."
Full Issue