Alex here.

This is Lex Reg Pulse Daily for Saturday, May 2, 2026.

The Federal Reserve's supervisory machinery is being recalibrated — in writing, effective immediately — two weeks before Kevin Warsh takes the chair.

That is the story this week.

Vice Chair for Supervision Michelle Bowman published a revised Statement of Supervisory Operating Principles Friday, rewriting the criteria examiners apply when issuing Material Regulatory Actions, Material Regulatory Improvement Actions, and formal enforcement actions across every Federal Reserve-supervised institution.

The stablecoin legislative window is compressing at the same time, and a community bank failure in Georgia closed out the week.

On the Bowman supervisory principles revision: this is not a policy speech or a set of aspirational priorities.

It is an operational document that changes how examiners identify deficiencies and decide whether to escalate findings.

The revision reflects Bowman's stated emphasis on supervisory proportionality — meaning the threshold and framing for what triggers formal action may have shifted.

Institutions with open Material Regulatory Actions should pull the full revised statement now and map their current examination profile against the new criteria.

The question is whether findings being managed under the prior standards require reframing under the new ones.

Boards should receive a summary at the next risk committee meeting — not after the next examination.

Bowman also spoke Friday at a Financial Stability Oversight Council roundtable on artificial intelligence governance.

The FSOC format matters here — this is a multi-agency venue, not a solo Fed initiative.

Bowman positioned AI deployment as a systemic risk vector requiring enhanced governance and cybersecurity controls.

Coordinated examination focus across the OCC, FDIC, and CFPB on AI governance is a reasonable expectation within the next examination cycle.

Institutions without an enterprise AI inventory and a documented model risk management framework are accumulating examination exposure.

The interagency host state loan-to-deposit ratios updated Friday, effective May 1.

The Fed, FDIC, and OCC jointly issued the 2026 figures.

Banks with interstate branches must recalculate their statewide ratio against the new host state numbers.

Falling below 50 percent of the host state average triggers a secondary community credit needs test, with examination findings and branch expansion restrictions following non-compliance.

Pull the updated ratios and complete the benchmarking exercise before the next examination cycle.

On stablecoins: the CLARITY Act's yield provisions advanced in the Senate this week.

The active compromise distinguishes cashback-style transaction rewards — which are considered permissible — from deposit-interest-linked yield, which remains contested.

That line is the provision that determines whether stablecoins function as a deposit substitute or remain a payment instrument.

The lobbying window is open now, before passage — not after.

Nubank, which holds conditional approval of a US bank charter, appears to be moving toward an interim product through a sponsor bank relationship ahead of full independent operations.

The competitive architecture is being built before the legislative framework is final.

Community Bank and Trust — West Georgia was closed Friday by the Georgia Department of Banking and Finance.

Anchor Bank assumes substantially all insured deposits and three branches reopen Monday.

The institution carried 288 million dollars in assets and 27 million dollars in uninsured deposits.

The estimated cost to the Deposit Insurance Fund is 97 million dollars — the second draw of 2026.

Community banks with elevated uninsured deposit concentrations should review deposit composition as a liquidity risk indicator.

The OFAC Hormuz maritime alert warrants attention from sanctions and anti-money-laundering teams.

OFAC issued a formal alert Friday warning that paying passage tolls to Iran for Strait of Hormuz transit — in fiat or digital assets — creates sanctions exposure.

Friday's action designated three Iranian foreign currency exchange houses and 13 front companies, among a total of 21 designated entities.

Screen those entities and run correspondent banking flows for potential front company exposure.

Two deadlines to track: the OCC interchange preemption and national bank fees rule comment period closes May 29 — four weeks out.

And the CFPB Section 1071 small business lending data collection rule published Friday with a January 1, 2028 compliance date.

Core lending system modifications typically require 24 to 36 months.

Institutions without an active gap analysis underway are behind schedule.

For the full analysis, check your Lex Reg Pulse daily briefing in your inbox, or catch Lex Reg Pulse Weekly every Sunday.

I'm Alex.

This has been Lex Reg Pulse Daily.

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