Senate Finance Committee Democrats are seeking evidence and proposals to shape health-care legislation. Their critique of insurers has merit, but reforms confined to insurance risk leaving hospitals, conglomerates, and much of the system’s extraction untouched, sets the stage for further disappointment.

Arian Simone, left, and Ayana Parsons of the foundation The Fearless Fund saw their grant program for Black women entrepreneurs affected after the Supreme Court ruled against affirmative action.

This box examines EU venture capital market developments and the implications for firm financing and growth. Venture capital in the EU remains limited in scale and fragmented across national markets, with gaps particularly evident at later stages of financing where they are partially filled by non-EU investors. Although venture capital from outside the EU can help firms expand, a strong reliance on external investors may reduce Europe’s ability to retain the economic gains generated by its entrepreneurial ecosystem.

Banks use their internal models to estimate capital requirements in a risk-sensitive way, subject to a set of rules laid down in banking regulation. However, these models are not flawless as the usage of models suffers from imperfections, such as oversimplifications or wrong assumptions. As a result, risks may be underestimated. This is particularly troublesome, where models are used to assess risks to banks’ solvency. In this paper we address an important gap in the literature with regard to such model risk.