Fed flags overheated markets as top stability risk

Friday, May 8, 2026

The Federal Reserve's April financial stability report found that asset valuations remain elevated, even as investors are beginning to demand more compensation for risk amid rising uncertainty around monetary policy.

Appeals judge sends Illinois interchange case back to district court

Friday, May 8, 2026

Banking groups that sued the state of Illinois over its law barring banks from charging interchange fees on taxes and tips cheered an appeals court ruling remanding the law to a lower court and vowed to keep the law going into effect, which is slated for July 1.

Goldman taps Feldgoise, Schiffrin; Fidelity to cut 800 staffers

Friday, May 8, 2026

Stephan Feldgoise and Joshua Schiffrin will join Goldman Sachs' management committee; Fidelity Investments is dismissing about 800 personnel as it restructures its technology and product-delivery teams; Citi has hired JPMorgan's André Ross as its country officer and banking head for South Africa; and more in this week's banking news roundup.

Affirm's Levchin rejects AI layoffs

Friday, May 8, 2026

Affirm CEO Max Levchin said that the company did not have any plans for AI-spurred layoffs despite the fact that it was using the technology more for software engineering.

What payment leaders had to say at American Banker's Payments Forum

Friday, May 8, 2026

Leaders from Wells Fargo, JPMorganChase and more talked about how banks can respond to the fast-moving changes in money movement, new forms of artificial intelligence, fraud, digital assets and more.

Jack Dorsey touts Block's AI-driven restructuring

Friday, May 8, 2026

The payments company posted strong adjusted earnings following a dramatic downsizing, which management attributed to the influence of artificial intelligence.

SEC slashed offer to Wells Fargo whistleblower by $125M

Friday, May 8, 2026

The Securities and Exchange Commission initially offered $179.5 million to Michael Bacon, who provided key information to the government about Wells Fargo's fake-accounts scandal. But shortly after SEC Commissioner Paul Atkins took office, the amount was sharply reduced.

Automating grunt work is still agentic AI's sweet spot

Friday, May 8, 2026

Bankers and tech executives at SAS' annual conference said agentic AI is still in the "terrible twos" stage and requires human supervision.

Bitcoin's Overton window of opportunity is closing

Friday, May 8, 2026

The 21st century financial system that digital currency promised is being built, but by banks, not by the bitcoin crowd.

Economy added 115,000 jobs in April despite mixed signals

Friday, May 8, 2026

Employers hired an additional 115,000 workers in April, while unemployment remained unchanged at 4.3%. Despite the positive headline figure, a spike in newly unemployed workers and a rising number of underemployed workers suggests instability under the surface.