FDIC Ditches Climate Financial Rules, Ignoring Warnings

A shocking move by the Federal Deposit Insurance Corporation (FDIC) has sent shockwaves through the financial sector: the agency has withdrawn its principles for managing climate-related financial risk, sparking concerns about the safety and security of America’s banks.

According to sources, the FDIC, along with the Federal Reserve Board and the Office of the Comptroller of the Currency, announced the withdrawal of the interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions on October 16, 2025. The move comes just two years after the principles were initially issued in October 2023.

So, why the sudden change of heart? The agencies claim that their existing safety and soundness standards, which require large financial institutions to have effective risk management commensurate with their size, complexity, and activities, are sufficient to address climate-related financial risks. They also argue that all supervised institutions are expected to consider and appropriately address all material financial risks, including emerging risks.

But critics are crying foul, arguing that the withdrawal of these principles puts the public at risk. “This move is a reckless gamble with the financial stability of our country,” said Julianne Fisher Breitbeil, FDIC spokesperson. “By ignoring the very real risks posed by climate change, the FDIC is putting the interests of large financial institutions ahead of the public’s safety and security.”

The Office of the Comptroller of the Currency (OCC) withdrew its participation in the principles earlier this year, citing “changing circumstances.” The Federal Reserve Board, on the other hand, has maintained its support for the principles, but has chosen not to intervene in the FDIC’s decision.

As the financial sector grapples with the implications of this move, one thing is clear: the public deserves better than to be put at risk by reckless regulatory decisions. The FDIC’s withdrawal of its climate financial rules is a stark reminder of the need for greater transparency and accountability in our financial system.