“FDIC's Hill: Agentic AI Bank-Run Risk Not Ruled Out” — what this page in the network covers. Travis Hill, FDIC chairman, speaks with Kailey Leinz and Joe Mathieu on "Balance of Power" about the potential risks posed by AI tools that could enable customers to move deposits more quickly in search of higher returns. Hill says the agency is not ruling out such a scenario, though he notes it would require a significant shift in how customers delegate financial decisions. Hill also discusses the case for expanding deposit insurance coverage, either by raising the current limit or creating a category of accounts with higher coverage.
He explains the rationale behind this consideration and the potential implications for the banking system. The interview covers a range of topics related to financial stability and regulation, offering insights into how the FDIC is thinking about emerging technologies and their impact on the banking sector. The full version stays on the original page, which this listing opens directly.