Climate Change Shock

Climate Change Shock

The Financial Stability Board has just published a report that concludes that climate change could lead to a broader panic in the financial system. The report concludes that banks could withdraw from lending and investor confidence could be damaged. Insurers pulling away from markets is also a key factor. What amazes me is that there are readers of this newsletter who argue that climate change is a scam made up to generate money!

PRA Delays Basel Implementation

The Prudential Regulation Authority has announced that it will delaying the implementation of the Basel 3.1 capital rules to at least January 2027. It notes that uncertainty concerning the US’s approach to these rules is the key reason. The PRA is also under pressure from the UK government to reduce the regulatory burden to promote growth. Bank shares rose on the news.

Amex Fined $230 Million

Amex has agreed a settlement of $230 million with the US Department of Justice. The bank admitted to deceptive marketing practices that claimed tax benefits from the use of its cards. It also agreed that it misrepresented the fee and rewards structures on products marketed to small businesses.