Prudential frameworks, capital requirements, supervisory architecture, and the political economy of financial rulemaking. From Basel to the EU AI Act, the rules that govern banking and the forces that shape them.
Vice Chair Bowman's March 2026 re-proposal eliminates the nineteen per cent capital hike that defined the Basel III Endgame since 2023. The industry won. The harder question is what the supervisors are conceding.
Read articleEuropean lenders are pushing regulators to recognise machine-learning credit models as grounds for lower capital requirements under CRR3. The argument has merit. The risks of conceding it are larger still.
Read articleJPMorgan, BNY Mellon, and Goldman Sachs have embedded large language models in risk, compliance, and treasury operations at a pace that outstrips the governance frameworks designed to manage them. The FSB has noticed. The frameworks have not yet arrived.
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