{"id":344790,"date":"2025-12-12T17:27:14","date_gmt":"2025-12-12T17:27:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/344790\/"},"modified":"2025-12-12T17:27:14","modified_gmt":"2025-12-12T17:27:14","slug":"farewell-financial-stability-hello-ai-controlling-your-money","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/344790\/","title":{"rendered":"Farewell, financial stability. Hello, AI controlling your money."},"content":{"rendered":"

Scott Bessent, secretary of the U.S. Treasury and pretend soybean farmer<\/a>, is here to shake things up in the financial regulation space, and by \u201cshake things up\u201d I mean \u201cget rid of all the regulations.\u201d<\/p>\n

Bessent\u2019s latest bold proposal is to kneecap<\/a> the Financial Stability Oversight Council. Created after the 2008 financial crisis to help prevent a recurrence, the FSOC is intended to serve as an oversight and regulatory body.\u00a0<\/p>\n

\"Treasury
\nTreasury Secretary Scott Bessent<\/p>\n

But instead of having oversight and regulation, Bessent dares to dream, what if we didn\u2019t?<\/p>\n

Instead of overseeing and regulating, the FSOC will now \u201cwork with and support member agencies in considering whether aspects of the U.S. financial regulatory framework impose undue burdens and negatively impact economic growth, thereby undermining financial stability.\u201d<\/p>\n

This is a bunch of buzzword nonsense, but what comes through loud and clear is that the Trump administration is redefining \u201cfinancial stability\u201d in a way that is not about stability at all.\u00a0<\/p>\n

The only thing that matters is growth, and we can\u2019t have pesky regulations that might hinder that. Sure, that might mean that financial institutions drive us all straight off the cliff as they did in the glorious unfettered years prior to 2008, but you have to break a few economies to line the pockets of your rich pals, right?<\/p>\n

But if FSOC isn\u2019t going to be helping figure out how to keep the financial sector stable, safe, and regulated, what will it be doing?<\/p>\n

Did you guess \u201cartificial intelligence\u201d? You should have guessed that.<\/p>\n

Instead of regulations to help protect you and your money, FSOC will now include<\/a> an AI working group that will \u201cprovide a forum for public-private dialogue to identify regulatory impediments to the responsible adoption of AI technology by entities in the financial services sector.\u201d<\/p>\n

Ah, yes. When it comes to the intersection of financial regulations and AI, things are much better with much more AI and much less regulation.\u00a0<\/p>\n

Bessent is also going to make sure that regulations don\u2019t \u201cimpose undue costs\u201d on credit markets. Regulations are supposed to impose costs and restrictions\u2014that\u2019s the entire point! A friction-free, consequence-free financial market is not a desirable thing!<\/p>\n

\"FILE
\nThe Federal Reserve in Washington, D.C.<\/p>\n

This is all part of the Trump administration\u2019s comprehensive assault<\/a> on financial regulations and the capacity of regulators.\u00a0<\/p>\n

The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have all seen drastic cuts to their regulatory staff, making it far more challenging to investigate or mitigate risk. Of course, for this administration, that\u2019s a feature\u2014not a bug.\u00a0<\/p>\n

The Consumer Financial Protection Bureau has also been gutted<\/a> into near nothingness, so good luck with any regulations or investigations there. In fact, the CFPB seems to have only taken two actions<\/a> this entire year.<\/p>\n

This financial deregulation push dovetails terribly with the administration\u2019s push to ensure that AI is basically unregulated<\/a> altogether. But who doesn\u2019t want a future with no regulations and the hallucination machine running amok through your dwindling bank accounts?<\/p>\n","protected":false},"excerpt":{"rendered":"Scott Bessent, secretary of the U.S. Treasury and pretend soybean farmer, is here to shake things up in…\n","protected":false},"author":2,"featured_media":344791,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,74],"class_list":["post-344790","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/344790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=344790"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/344790\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/344791"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=344790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=344790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=344790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}