New paper alert!
My latest, "Enforcing the Community Reinvestment Act," with Jeff Zhang, is forthcoming in @washulawreview.bsky.social.
TL;DR: Using 20 years of data, we find that CRA enforcement does not incentivize banks to invest in low-income communities.
papers.ssrn.com/sol3/papers....
In Senate testimony last week, Comptroller Jonathan Gould defended his handling of the Trump family's bank charter application by praising his agency's "superb professional" staff.
This week, he busted their union.
Jonathan Gould, getting politics out of bank regulation.
“Former Davis Polk lawyer appoints former Davis Polk later head of Fed supervision”
Jay Powell’s legacy on bank regulation: letting the fox guard the henhouse.
subscriber.politicopro.com/article/2026...
The "stop politicizing banks" administration wants banks to be immigration agents. 🫠
h/t @grahamsteele.bsky.social
www.wsj.com/politics/pol...
The top 0.09% of banks accounted for 40% of banking system profits last year.
This is not what a healthy financial system looks like.
www.ft.com/content/8fc1...
Dude, have you seen the CEA's CFPB "study"?
In the past, Fed Governors could not even bring in advisers from outside the Fed, let alone name Division Directors who were not longtime Fed employees.
But sure, Bowman gets to put the head of Davis Polk’s financial institutions group in charge of supervision. SMDH.
Outrageous.
The Fed is debasing itself by putting Wall Street banks’ favorite lawyer in charge of bank supervision.
Kevin Warsh, a Federal Reserve governor, says in September 2006: "I would say that the capital markets are probably more profitable and more robust at this moment than they have perhaps ever been."
We need more focus on Warsh's deregulatory policies. He wants to gut bank oversight at a dangerous time in the markets, like he pushed for in 2006 before the 2008 crisis. Similar to Trump's pick for SEC Chair Paul Atkins. Arguably more dangerous than bad monetary policy.
www.pbs.org/newshour/sho...
If you think Powell (at times) had a moderating influence on Mnuchin/Quarles' and Bessent/Bowman's worst deregulatory impulses, don't count on the same from Warsh.
Even if he weren't already so inclined, expect Warsh to defer to Bessent/Bowman's aggressive deregulatory agenda.
Now in print at Yale JREG: "Least-Cost" Resolution.
Inspired by my stint advising DOJ Antitrust during the 2023 banking crisis, the article shows how the least-cost resolution requirement for failed banks increases concentration, instability, and inequality.
www.yalejreg.com/print/least-...
I don't agree with *what* Trump's bank regulators are doing, but I am impressed by *how* they're doing it. As I told @politico.com:
"The problem with prior admins is that Treasury took a hands-off approach to regulation... That meant there was nobody in charge."
www.politico.com/news/2026/01...
2026 Roosevelt Institute Fellow, an Associate Professor of Business Law at the University of Michigan's Stephen M. Ross School of Business, previously with the Federal Department of Justice, smiling in a professional portrait against a green background with the Roosevelt Institute logo displayed.
➡️ @jeremykress.bsky.social
👥 As a Roosevelt Institute fellow, Jeremy Kress will work on banking industry policy, banking reform, and financial stability.
Full bio 👉 rooseveltinstitute.org/authors/jere...
I'm thrilled to join @rooseveltinstitute.org as a think tank fellow. Looking forward to developing new ideas for a financial system that delivers productive, sustainable, and broad-based economic growth. Let's get to work!
The show of support would’ve been more compelling had it come before he himself was threatened.
Bribing banks to cap credit card rates by promising even more deregulation? Give me a break!
If the White House wants to make credit cards more affordable, the CFPB has plenty of tools to do that. But that would require a functional CFPB…
Both Fed Vice Chairs gave speeches today.
Not a word about Fed independence in either of their prepared remarks.
Check out the full symposium issue for insightful analyses of comparative approaches to fintech, digital assets and AI, climate disclosure, and administrative law - each written by a team of U.S. and EU scholars.
lcp.law.duke.edu/current-issue/
My latest article, "Systemic Risk and Macroprudential Regulation, co-authored with Seraina Grunewald, is now live as part of the Law & Contemporary Problems symposium on comparative US-EU financial regulation.
lcp.law.duke.edu/article/syst...
When Trump floated a 10% credit card interest rate cap on Friday night, the banking trade groups issued a statement within hours.
The day after Trump threatens the Fed Chair with criminal prosecution … crickets.
He would have a lot more credibility if he had spoken on behalf of his fellow board member when she was similarly attacked.
I'm having trouble seeing anything brave or noble here - he's protecting himself more than the institution.
Early 2025: Trump admin tries to illegally shut down the CFPB, the newest member of the Federal Reserve system. Jay Powell says nothing.
Summer 2025: Trump admin tries to illegally fire Fed Governor Lisa Cook. Powell says nothing.
2026: Trump admin comes for Powell. He finally finds his voice.
Powell could’ve issued this exact statement last August. It’s notable that he didn’t.
bsky.app/profile/colb...
The Fed had ample opportunity to defend its independence when the President tried to fire Gov. Cook last year. It utterly failed to do so.
It shouldn’t be surprising that (1) Trump kept targeting the Fed, and (2) the Fed only circled the wagons when the Chair was threatened.
I was skeptical at first because of his age and our experience the last time we imported an entire coaching staff from another school.
But he’s definitely growing on me as I learn more. These coordinators seem legit. Newsome is the staffer I would’ve liked him to retain.
Good luck with the flight!
We happy with Whittingham?
One last grumpy comment letter before the year ends. This one opposes the FDIC's and OCC's ill-advised definition of "unsafe or unsound" practices.
Here's hoping 2026 brings more sensible bank regulation. 🥂
Last week, Citi's CFO said the firm is "roughly two thirds" finished fixing its risk management and compliance systems.
This week, the OCC terminated a related Citi enforcement action.
I guess this OCC considers two-thirds to be good enough.
www.bloomberg.com/news/article...
