United States: Finance and Banking

The FDIC and Federal Reserve have issued proposed rules addressing state bank parity, merger procedures, and stablecoin regulation, while the Federal Reserve finalizes stress test changes to enhance transparency and reduce capital volatility. These regulatory developments reshape the landscape for interstate banking operations, merger transactions, and digital asset activities for financial institutions.

Federal banking regulators have proposed significant revisions to third-party risk management guidance, shifting from prescriptive requirements to a flexible, risk-based framework that gives banks greater discretion in managing vendor relationships. The proposal addresses longstanding concerns about the 2023 guidance being too rigid and includes a companion statement on community banks' relationships with core service providers.

Federal banking regulators propose replacing the 2023 Third-Party Risk Management Guidance with a principles-based framework that scales oversight to actual risk magnitude and likelihood rather than prescriptive process requirements. The proposal eliminates mandatory contract terms, reduces inventory requirements for lower-risk relationships, and explicitly permits banks to accept third-party risk within their stated risk appetite without supervisory criticism.

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.

The 2025 restructuring of the Ardagh Group S.A. (Ardagh or the company) capital structure unleashed one of the most controversial—and ultimately consequential—“Restructuring” credit event determination processes...

A circuit split and new OCC regulations have created unprecedented uncertainty over whether federal law preempts state requirements that mortgage lenders pay interest on escrow accounts. With the Second Circuit finding preemption, the First and Ninth Circuits rejecting it, and ten states now challenging the OCC's nationwide preemption determination in court, mortgage lenders face a fragmented compliance landscape that demands jurisdiction-specific strategies and constant monitoring of rapidly evolving

Asset-based lending against in-transit inventory presents unique legal challenges as lenders navigate UCC Article 7 requirements, negotiable documents of title, and the emerging landscape of electronic bills of lading. This analysis examines how ABL lenders can structure security interests to protect their position when goods are moving through the supply chain, from traditional paper documentation to modern electronic platforms.

On August 10, the Washington DFI entered into a consent order with a mortgage services company resolving allegations that the company performed third-party residential mortgage loan processing...

The FDIC and Federal Reserve have issued proposed rules addressing state bank parity, merger procedures, and stablecoin regulation, while the Federal Reserve finalizes stress test changes to enhance transparency and reduce capital volatility. These regulatory developments reshape the landscape for interstate banking operations, merger transactions, and digital asset activities for financial institutions.

The SEC Staff has issued new guidance addressing fair value measurement and disclosure practices for private credit and other illiquid assets held by registered funds and business development companies. As private credit portfolios have grown nearly 60% since 2020, reaching $270 billion, regulators emphasize the critical importance of robust valuation methodologies, transparent disclosure of significant judgments, and careful application of accounting standards when market prices are unavailable.

Federal banking regulators have proposed significant revisions to third-party risk management guidance, shifting from prescriptive requirements to a flexible, risk-based framework that gives banks greater discretion in managing vendor relationships. The proposal addresses longstanding concerns about the 2023 guidance being too rigid and includes a companion statement on community banks' relationships with core service providers.