Major banks including JPMorgan Chase, Bank of America, Wells Fargo and PNC Financial Services have discussed acquiring a Fiserv payment network to circumvent debit card interchange fee caps imposed by the Durbin amendment. The move, inspired by Capital One Financial's acquisition of Discover Financial, could allow banks to directly manage card transactions and increase revenue, but some banks have expressed concern about potential political backlash.

The European Banking Authority is working on methods to quantify extreme heat's financial impact on banks, with heat potentially becoming a separate category in future stress tests, an EBA spokesperson said. The move comes as Europe faces record-high temperatures and increasing climate- and weather-related damage. The EBA is focusing on flood risk in the next stress test, which will run into 2027.

A Delaware court held that JPMorgan Chase must continue to cover Charlie Javice's legal fees, despite her 2025 conviction for defrauding the bank. The court cited a provision in JPMorgan's 2021 acquisition agreement with Javice's startup, Frank, that requires the bank to advance Javice's legal costs in the event of a dispute. JPMorgan is fighting to avoid paying the mounting expenses, which now total $144.2 million, but the court said the contract obligates the bank to pay as Javice pursues her appeal.

The US corporate bond market seems safer as more high-rated tech companies, such as Amazon, Meta, Alphabet and Nvidia, sell debt to fund artificial intelligence projects, raising the average credit rating in Bloomberg's US investment-grade bond index. However, investors worry that the trillions spent on AI might not be as profitable as expected, potentially resulting in wider spreads and losses for bondholders.

The National Financial Regulatory Administration has taken over Z-Bank for a year and approved the bankruptcy of Zhongrong International Trust as part of efforts to mitigate financial risks. The moves mark the first major enforcement actions by NFRA head Ding Xiangqun, who took office in May.

The National Securities Clearing Corporation has shifted to a 24x5 clearing model, supporting overnight trading from Sunday at 8 p.m. Eastern time to Friday at 8 p.m. This move is a critical step toward near-24/7 trading in US equity markets, with exchanges expected to extend trading hours by the end of the year. The Depository Trust & Clearing Corporation has prepared for this change since the transition to T+1 settlement in 2024, and has implemented technical adjustments, such as new tags for trading sessions and business dates, as part of the preparation.

Quantitative hedge funds are experiencing their worst performance since 2023 as a violent rotation in the stock market disrupts momentum strategies. A long-short momentum strategy dropped more than 3% for the second consecutive week, leading to a two-week loss of more than 6%. Systematic long-short managers fell 2.1% last week after a 3.1% decline the previous week.

The China securities units of Goldman Sachs, Morgan Stanley and JPMorgan Chase reported record net profits in 2025, driven largely by trading and brokerage income. The profits come as global investors show renewed interest in China, leading to a surge in cross-border business. The performance of Western banks contrasts with that of their European counterparts, such as HSBC Holdings and Deutsche Bank, whose China securities units have underperformed.

South Korea has launched 24-hour onshore spot dollar-won trading in an effort to enhance currency convertibility and possibly attain developed-market status on the MSCI global index. Finance Minister Koo Yun-cheol has described the move as a "starting point for the won's global leap."