Fed says final rule largely mirrors the proposal and aims to make testing more transparent and predictable.

The Bank of England warned in its quarterly Financial Stability Report that AI valuations remain at risk of a sharper correction than in July, and that such a collapse could have broad effects on global growth and sovereign bond yields. Policymakers said interconnected vulnerabilities in the financial system are rising and the likelihood of simultaneous shocks has increased. The Bank flagged the multi-trillion-dollar AI market as a major risk and cited a renewed escalation in the Middle East, which could trigger a longer-lasting negative supply shock and raise sovereign debt risk. The Bank reiterated prior warnings that asset froth may be forming across AI-related equities, credit markets and sovereign debt.

U.S. Securities and Exchange Commission proposes allowing closed-end funds to offer shareholders monthly repurchase opportunities at net asset value (NAV).