The US Federal Reserve has acknowledged the threat of climate change, binging it in line with other central banks and global standard-setting bodies.

The US's recovery from the Covid-19 pandemic depends on banks actively lending while being honest about their losses, the Senate Committee on Banking, Housing and Urban Affairs has heard.

The continued uncertainty around the Covid-19 pandemic has prompted the US Federal Reserve Board to announce another round of bank stress tests to see how large banks stand up against two scenarios featuring severe recessions. 

The government sponsored enterprises (GSE) Fannie Mae and Freddie Mac could threaten financial stability and may need more capital according to the Financial Stability Oversight Council (FSOC). 

Special purpose acquisition companies (SPACS) accompanied by adequate disclosures offer healthy competition to traditional initial public offerings (IPOs), said the chairman of the US Securities and Exchange Commission (SEC), Jay Clayton.

For the fourth quarter of this year, banks with more than $100bn in total assets will be prohibited from making share repurchases, the US Federal Reserve said in a statement.

New rules for money market funds could be in the works following comments from deputy US Treasury Secretary Justin Muzinich that the reforms dating from the 2007-9 global financial crisis may not go far enough. 

Large volumes of deferrals on debt repayments granted by banks to borrowers is masking the true credit quality of these institutions, Moody’s Investors Service said in a report, warning that it expects delinquencies to increase rapidly as these measures and government support schemes wind down. 

The US Securities and Exchange Commission (SEC) has put together a new unit called the Event and Emerging Risks Examination Team (EERT) tasked with detecting emerging threats.