WASHINGTON, D.C.— Shayna Olesiuk, Director of Banking Policy, issued the following statement in connection with the release of Better Markets’ new Fact Sheet, “Bank Directors Must Be Held Accountable.”
“Banks—including the biggest banks in the country headquartered on Wall Street—have repeated failures of the most basic risk controls, routinely break the law, and too often collapse into bankruptcy, resulting in massive losses and taxpayer bailouts. Yet, the executives and members of the Board of Directors who are responsible for hiring and overseeing the management of those banks virtually never face any accountability. Not only is that wrong, but it almost certainly results in more and greater failures because of the moral hazard it creates.
“In 2023, the Federal Deposit Insurance Corporation (“FDIC”) proposed enforceable corporate governance standards. These would rightly hold the largest banks in our country accountable for meeting basic, minimum standards for operating safely and fairly. Better Markets strongly supported these standards because they will directly support and protect consumers and small businesses as well as banks, the economy, and the entire financial system.
“Unfortunately, an entire year has now passed since the public comment deadline and the proposed standards remain in limbo. To make matters worse, the FDIC’s Acting Chairman Travis Hill opposed and voted against the standards when they were originally proposed and, more recently, said that a withdrawal of the proposal is among his first priorities as Acting FDIC Chairman.
“Continuing to delay, or worse impede, the finalization and implementation of strong corporate governance standards is a dangerous and irresponsible action. The FDIC must take action to implement enforceable corporate governance standards to protect Main Street Americans and the financial system by promoting accountability among those who are responsible for the operations at the banks, which includes senior management and boards of directors.”
You can find the fact sheet here.
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