FOR IMMEDIATE RELEASE
Thursday, December 9, 2021
Contact: Evelyn Swan at 202-618-6433 or eswan@bettermarkets.org

WASHINGTON, D.C.— Today, Dennis Kelleher, Co-founder, President, and Chief Executive Officer of Better Markets, issued the following statement on today’s action by the FDIC to issue a request for information from the public regarding its bank merger policies:

“We applaud the FDIC for issuing a request for information on its bank merger policies, not only to strengthen the standards regarding bank mergers but also to do so with input from the public. It is imperative to ensure that bank mergers receive the scrutiny that is required to protect the public interest and that those policies are informed by the people the banking agencies are supposed to serve.

“There has been a significant consolidation in the banking sector over the last 30 years, most notably in the aftermath of the 2008 financial crash, which resulted in the many systemically significant megabanks we have today. Such consolidation concentrates risks in the banking system and makes the too-big-to-fail, too-big-to-manage, too-big-to-jail, and too often the too-big-to-regulate problems all much worse. Moreover, the creation of larger banks has been shown to harm consumers and small businesses by decreasing the provision of lending and banking services to communities across America.

“The policies at the banking agencies must be strengthened to more appropriately reflect the increase in risks to the system from bank mergers, particularly mergers of large banks, and the potential harm to low-income communities and marginalized communities of color from reduced access to products and services. The FDIC’s request for information from the public will help ensure that the views of all Americans are represented in the process, not just those of Wall Street banks, and will help form policies that promote a safe and sound banking system that serves all Americans.”

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Better Markets is a non-profit, non-partisan, and independent organization founded 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.