ai
Bank of England to ease capital rules for lending and notes AI stock risks
The central bank will loosen post-2008 lending standards to spur growth. It simultaneously flagged heavy exposure to AI equities by hedge funds and other investors.
Jul 14, 9:24 AM·1m read1 source
Audio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
The Bank of England plans to ease capital rules to encourage more lending, The Guardian reported. The central bank simultaneously expressed concerns that too many loans are flowing to investors such as hedge funds buying AI stocks. The rules slated for loosening were implemented after the 2008 financial crisis.
Andrew Bailey, Bank of England governor, said on Tuesday that the risk of a sharp correction in equity markets remains high. He warned of a “triple whammy” of AI risks consisting of oversized investment in AI stocks, slower adoption than predicted, and the rapid pace of development.
Bailey did not recommend any new policies to guard against risks of high valuations to UK financial stability, The Guardian reported.
In a separate development, Apple sued OpenAI on Friday alleging the company mounted a campaign to steal trade secrets to create its own hardware device. The suit follows Apple’s 2024 announcement that its revamped Siri would rely on ChatGPT; the update that launched last month instead used Google’s Gemini.
OpenAI paid $6.4 billion in equity to acquire the product-less startup of former Apple chief design officer Jony Ive in 2025.
Fidji Simo, OpenAI’s second-in-command, stepped down last week. OpenAI said in response to the suit that it has no interest in other companies’ trade secrets.
