A regulator could assert that every data set is flawed in that it reflects events in the past at time when there was racial bias, or that current data is inherently biased.  Further, large AI models are by their very nature not transparent.  So, this CRS report is a warning to lenders that they may be breaking the law just by their use of AI. This demands a response by policymakers, at least to provide guidance to lenders on how they can assure compliance.

When every impacted party - the buy-side, the sell-side, and the custodial side - criticizes a proposed regulation as impractical and expensive, that should strongly suggest to the regulator that the proposal will not work.

New York State has moved fairly quickly from being a leading jurisdiction for digital asset businesses to shutting them down almost entirely. The indeterminacy of the proposed requirements ("high standards of commercial honor," while borrowed from FINRA has no clear meaning), the strictness of the proposed requirements (in the regulated financial industry, many firms serve in dual roles) and the harshness of the penalties are further deterrents to firms signing up to be regulated under New…

Failed banks' executives are not blameless. Obviously, some banks did better than others. But there are a lot of banks that are hurting. And were it not for the understanding that the federal government seems to be effectively ensuring all bank deposits, many more banks would be failing.

There is a pattern here, but it is not limited to defective management. There is still no mention from Senator Warren of the damage to banks' balance sheets from inflation. (See e.g. .)…