Banking – Week of June 29 in Review

Events over the past week include a Supreme Court decision with long-term (if not permanent) consequences for the banking industry specifically and the economy generally: in Trump v. Cook, the Court held that governors on the Federal Reserve Board may not be fired without cause. Moreover, there is a “substantial threshold” for cause. In the near term, the decision does not necessarily end the efforts to remove Governor Cook, but the decision suggests that such efforts are unlikely to be successful. AI developments also warrant attention as an indicator of how involved the federal government will be in the regulation of large language models. The nature of the government’s role with respect to AI is evolving.

Read the full detailed report in the PDF linked below: