Is now the time for banks to have lower cushions in case of disaster? I'm David Brancaccio in Los Angeles.

The Federal Reserve is looking at easing rules for banks with the hope that means more mortgage loans.

It also means banks may be more vulnerable to the next financial crisis. Marketplaces Nova Safo is here with details.

This news comes from the Fed's vice chair for supervision, Michelle Booman. She was speaking

yesterday at a conference of the American Bankers Association. And she said regulation with regards to

banks issuing and servicing mortgages became too onerous after the financial crisis, causing

banks to largely cede that business to specialist mortgage lenders and non-bank institutions.

Fewer banks engaged in the mortgage origination and servicing has reduced the consumer choice

and competition that drives down cost. In addition, borrowers that experience

financial distress seem to fare worse in a downturn with a non-bank servicer. So what Bowman is proposing

is easing capital requirements, the mix of cash, stock and other assets that banks have to hold

in case of trouble, as well as changing how risk is calculated with regards to mortgages.

Now, we did live through this. Regulators tightened banking rules after the great financial crisis of 2008 and nine, all the excesses and abuses in the mortgage system.

Did Bowman address why easing the rules might be

okay now? Yes, and what Bowman argues is that a lot has changed since regulations were tightened

in 2013. She says now regulators better understand how banks handle mortgages and they better

understand the risks involved. And that's

why she says some changes can be made while keeping the system stable. All right, Nova, thank you very

much. People who make bets on the future of tech mostly want to hear just two words these days.

Artificial intelligence, according to Pitchbook and the National Venture Capital Association, AI startups got 65% of all U.S. venture capital dollars last year, $222 billion. A lot of that goes toward physical infrastructure, powering the AI boom, especially data centers that do the calculations,

marketplaces Megan McCarty Carrino has this tour.

Sometimes things are not as they appear.

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