US financial regulators

US Supreme Court Justice Samuel Alito has recused himself from a major climate case amid scrutiny over his holdings in oil stocks. The decision removes him from proceedings with potentially far-reaching consequences for climate regulation, and it has renewed debate over the ethical standards and financial disclosure rules governing Supreme Court justices.

UBS has been fined $125 million by US regulators, a penalty being read as a sign of a broader shift in how American authorities are supervising major financial institutions. The fine, reported by Global Finance Magazine, comes amid heightened scrutiny of banks' compliance and risk practices. Analysts are watching whether this marks the start of more aggressive enforcement against large international banks operating in the US market.

The Conference of State Bank Supervisors has announced a supervisory framework covering the use of artificial intelligence by state-chartered banks and nonbank financial institutions. The framework sets out how state regulators intend to oversee AI adoption in the financial sector, adding to ongoing regulatory attention on AI risk management across the US financial system.

The Federal Reserve has finalized changes to its bank stress-testing framework, the annual exercise that measures whether large lenders can withstand severe economic shocks. The move follows earlier proposals to reduce volatility in test results and give banks more time to adjust to capital requirements. Banking industry groups have welcomed efforts to smooth requirements, while some critics caution that softer tests could leave the financial system less prepared for a downturn.

US midterm elections are in focus for financial markets, with investors weighing how the vote could affect policy, regulation and spending. Commentators are discussing which congressional outcomes might move stocks, bonds and the dollar, and how historical midterm patterns have shaped market performance.

A financial regulator has opened an investigation into former US congressman Adam Kinzinger over his trading activity on Kalshi, the prediction-markets platform. Details of the probe, including which agency is leading it and what potential rules may have been breached, have not yet been made public. The news, first reported by Politico, is drawing attention because of Kinzinger's high political profile and Kalshi's growing regulatory scrutiny in the US.