United States: Could AI Trigger A Financial Crisis? - Cooley LLP

Biden Convenes Panel , to Eliminate Threat of , Debt Default. On July 20, President Joe Biden directed aides to convene experts to work toward making the possibility of debt default "a thing of the past.". NBC reports that the Debt Ceiling Working Group will "analyze the economic and financial harms associated with debt ceiling brinkmanship.". As the president has said, now that the latest debt ceiling crisis is behind us, it is necessary to explore all legal and policy options to prevent Congress from ever again holding hostage the full faith and credit of the United States, White House statement, via NBC. According to the White House, the panel of experts will draw lessons from the experiences of other nations and offer recommendations to the administration. Earlier in 2023, Republican House Speaker Kevin McCarthy and the Biden administration agreed to raise the U.S. debt ceiling. The deal narrowly avoided a debt default that had the potential to upend the global economy. NBC reports that the panel will be co-chaired by White House Counsel Stuart Delery and Director of the National Economic Council Lael Brainard. NBC reports that the panel will be co-chaired by White House Counsel Stuart Delery and Director of the National Economic Council Lael Brainard. Treasury Secretary Janey Yellen, Attorney General Merrick Garland and Council of Economic Advisers Chair Jared Bernstein will also participate in the Working Group. Treasury Secretary Janey Yellen, Attorney General Merrick Garland and Council of Economic Advisers Chair Jared Bernstein will also participate in the Working Group. Treasury Secretary Janey Yellen, Attorney General Merrick Garland and Council of Economic Advisers Chair Jared Bernstein will also participate in the Working Group. According to the White House, the panel will , "consult with experts outside the government in a range of fields, including law, economics and history.". NBC reports that other debt ceiling standoffs have taken place in the past, leading some Democrats to call for eliminating the budgetary restraint.

In remarks to the audience at a Financial Times summit earlier this month, Gurbir Grewal, SEC Director of Enforcement, citing a recent poll from Deloitte...