JPMorgan Chase CEO Jamie Dimon is strongly opposing the CLARITY Act, warning that stablecoins offering yield could lead to a 'shadow banking' crisis similar to 2008. Banks argue they lack regulatory safeguards, while crypto firms see them as consumer choice.
JPMorgan CEO Jamie Dimon strongly opposes the CLARITY Act, warning that yield-paying stablecoins could create a 'shadow banking' crisis similar to 2008. He vows to fight the bill, which aims to regulate digital assets but faces debate over interest payments on stablecoins.
BIS warns shadow banking's lack of oversight may lead to rapid financial downturn due to interconnected vulnerabilities, citing potential for faster correction than previous banking crises.
The US and UK have imposed separate sanctions targeting individuals, companies, and networks involved in Iran's oil sales, financial transactions, and alleged hostile activities. These measures aim to disrupt Iran's oil exports to China and cut off funding for the IRGC, while the UK focuses on shadow banking and destabilizing operations linked to criminal networks.
The bank shouldn’t sound the all-clear, but two screw-ups doesn’t mean the current credit cycle will end in tearsBarclays cuts back risky lending after £228m hit from UK mortgage firm MFSBarclays boss CS Venkatakrishnan, having seen the bank hit in the space of six months by two high-profile blow-ups in the world of shadow banking, is pledging to take more care. “We are constraining lending to certain structured finance counterparties who operate more vulnerable business models and cannot convince us of the quality and independence of their financial controls,” he said.There’s an obvious response to that vow of greater vigilance: what were you doing previously? Wouldn’t it have been a good idea in the first place not to lend to high-risk outfits with unconvincing financial controls – for example those with large mortgage exposures but small audit firms? There was, in other words, a sense in the chief executive’s comments of stable doors being shut rather too late. Continue reading...
