FOR IMMEDIATE RELEASE
Thursday, October 4, 2018
Contact: Nick Jacobs, 202-618-6430 or njacobs@bettermarkets.com
Statement on Sen. Sanders’ Bill to Break Up Too-big-to-fail Banks
Washington, D.C. – Following the introduction of a bill by Senator Bernie Sanders to break up the biggest too-big-to-fail banks, Dennis Kelleher, president and CEO of Better Markets, issued the following statement:
“Whether people agree or disagree with the details, we hope that Sen. Sanders’ bill to break up the biggest too-big-to-fail banks will reignite an important discussion about how to remove that threat to the country and about how to get banks back into actual banking again.
“The problem isn’t just that these gigantic banks are too-big-to-fail. It’s that they also remain too-big-to-manage and too-big-to-jail, as the weekly headlines of their latest wrongdoing and criminality remind everyone. On top of their systemic threat, their size, complexity, interconnectedness, leverage and global activities make them prone to predatory, reckless and illegal conduct as they seek to maximize profits and bonuses. It also makes them too-big-to-regulate as they use their economic power to buy political power and corrupt democracy.
“As if that wasn’t enough, the majority of activities at the biggest banks are unrelated to supporting the real economy, which is why they are backed by taxpayers in the first place and why they were bailed out in 2008. Too many of those bonus-boosting activities are socially useless in addition to being dangerous. These financial conglomerates are really designed and run to generate massive cash to enrich a few thousand financiers and to fund their massive lobbying machines in Washington. They are underserving of the lifesaving taxpayer support they receive.
“As the country continues to suffer grievously from the economic, social and political aftershocks of the 2008 financial crisis, this is the perfect time to revisit the best way to end too-big-to-fail and too-big-to-jail. Banks need to get back into the business of banking and supporting the real economy, jobs and growth. Our financial system, economy and America’s hardworking families deserve no less.”
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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.com.
