A final rule issued by the Federal Deposit Insurance Corp. updates the supervisory appeals process within the FDIC, mandating that its three-member supervisory appeals board have at least one member with banking-sector experience and at least one with examination or supervisory experience. The rule also broadens banks' appellate rights in cases involving proposed or pending enforcement actions. Comptroller of the Currency Jonathan Gould said his office expects to produce a similar rulemaking soon.

UK-based fintech Revolut has abandoned its effort to acquire a US bank and will instead pursue a US banking license. The shift comes as the Trump administration has eased the regulatory approval process for license applications. The fintech has not yet obtained a full banking license in the UK, and its previous plan for US expansion faced challenges such as a potential commitment to maintaining physical branches.

Capital One Financial agreed to a $5.15 billion cash-and-stock deal to purchase fintech company Brex, a move designed to enhance Capital One's services for corporate clients. Brex, which provides technology for the administration of corporate credit cards, manages about $13 billion of deposits held at partner banks and money market funds. Intel, Robinhood and TikTok are among its clients.

The Federal Deposit Insurance Corp. has given approval for Ford and General Motors to establish banks chartered in Utah. Ford Credit Bank and GM Financial Bank would offer automotive financing products and accept FDIC-insured deposits.

Bank of America executives said 42 million consumers, 40,000 business customers and 95% of BofA employees use the lender's virtual assistant, Erica, which handles 2 million interactions daily. Erica harnesses natural language understanding and predictive analytics instead of relying on generative AI models. The bank is working to create greater personalization and offer just-in-time advice through the virtual assistant.

The US economy has become increasingly "K-shaped," with "roughly 60% of Americans on the downward side of the divide" as the cost of essential goods outpaces wage growth, writes Gene Ludwig of Canapi Ventures and Ludwig Advisors. "This economic bifurcation presents both opportunity and risk for banks," which need to innovate and support policy changes that will put the economy on a more balanced path, Ludwig writes.

Wyoming's Frontier stablecoin had $1.5 million in sales during its first week, with the goals of funding public schools and reducing businesses' credit card interchange fees. The token, operating across seven blockchains, is backed 102% by US dollars and short-term Treasurys.

The House has passed its final set of funding bills for fiscal 2026, including a contentious Department of Homeland Security bill, marking a significant milestone for Speaker Mike Johnson, R-La. Johnson praised the achievement as a return to a committee-led appropriations process. The bills now head to the Senate, which is expected to consider them before a Jan. 30 deadline.