Financial Regulatory Agencies Rescind Climate Risk Guidance For Banks

Three major financial regulatory agencies are rescinding a Biden-era joint guidance for how large banks and other financial institutions should assess climate-related financial risks, arguing that the principles are confusing and unnecessary. “The agencies do not believe principles for the management of climate-related financial risk are necessary and are concerned that such principles could distract from the management of other potential risks identified and addressed by financial institutions’ existing risk management processes and the agencies’ other risk management rules and...