INSUBCONTINENT EXCLUSIVE:
American financial regulators are blocking international efforts to impose climate-risk mandates on banks, framing the rules as
ideologically driven policies that threaten U.S
proposed binding standards for banks to disclose climate exposures, assess transition risks, and hold additional capital against
carbon-intensive assets.The Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency
officials downgraded the TFCR to a technical working group and stripped key provisions from draft rules, including mandatory financed
emissions reporting.Federal Reserve Chair Jerome Powell emphasized the U.S
Banks Resist Global Climate Rules, Citing Economic Risks and Regulatory Overreach
(Photo Internet reproduction)Wall Street banks fiercely opposed the original Basel III Endgame reforms, which would have forced large U.S
Banks Push Back on Climate RulesJPMorgan Chase, Bank of America, and Citigroup warned compliance costs could reduce lending to industries
like energy and agriculture, disproportionately impacting lower-income communities
Their lobbying campaign included threats to sue the Fed if stricter rules advanced.European regulators counter that climate risks are
The European Central Bank now mandates climate stress tests for EU banks, while the Bank of England requires transition plans for
high-emission sectors.U.S
Domestically, the clash reflects a deepening ideological divide.Republicans and industry groups argue global climate rules prioritize
progressive agendas over economic stability, pointing to the $673 billion in U.S
oil and gas financing since 2021.Democrats, meanwhile, accuse regulators of ignoring clear threats-20 lawmakers recently criticized the Fed
for lagging on climate preparedness
The Biden administration faces pressure on multiple fronts.While Fed Vice Chair Michael Barr initially supported tougher capital rules,
backlash from banks and GOP leaders forced a retreat
decisions requiring unanimous approval, U.S
opposition ensures global deadlock
This stalemate grants American banks a competitive edge in fossil fuel financing but raises long-term stability concerns.As EU institutions
adopt stricter standards, analysts warn fragmented rules could distort markets and leave the financial system unprepared for climate shocks
The outcome hinges on whether economic pragmatism trumps global risk mitigation-a debate reshaping finance in an era of escalating climate
