WASHINGTON, D.C.— Phillip Basil, Director of Economic Growth and Financial Stability for Better Markets, issued the following statement in connection with Better Markets’ new Fact Sheet entitled “Financial Stability Oversight Council Policies Will Harm the Economy and Financial System”:

“Treasury Secretary Scott Bessent, the current Chair of the Financial Stability Oversight Council (FSOC), owes the American people a legitimate explanation for pursuing an agenda that harms the real economy and risks financial instability. The FSOC is ignoring its core mission: promoting a stable financial system and economy. Instead, the FSOC has pursued an aggressively pro-Wall Street deregulatory agenda. This will expand already-wide income and wealth gaps and lead to broad-based financial instability.

“Bessent’s pretext for his deregulatory agenda is the claim that financial regulation negatively impacts economic growth. However, in reality, large-scale deregulation results only in narrow, fragile, short term bubble growth. When that bubble bursts, it’s everyday Americans who suffer. Without fail, enabling financial speculation through deregulation sets the economy back years. That’s exactly what happened after the 2008 crash, when 90 percent of Americans were poorer at the end of 2016 than they were in 2007. Meanwhile, risk-taking large banks enjoy taxpayer bailouts, continue pushing for reduced regulation, and start the cycle all over again.

“In alignment with its mandate, the FSOC must get back to basics and support a stable financial system that drives durable, broad-based economic growth.”

The fact sheet is available here.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.