WASHINGTON, D.C.— Shayna Olesiuk, Director of Banking Policy, issued the following statement in connection with Better Markets’ new Report, “California’s Homeowners, Business Owners, Banks, and Financial Safety Net Burned by Fires.”

“The fires in California have sadly destroyed entire communities and put immense pressure on homeowners, businesses, and financial institutions. The Palisades and Eaton fires alone have destroyed 12,000 homes and structures, causing an estimated $250 billion to $275 billion in damages. This devastation is a stark reminder of the growing financial risks associated with climate change and the increasing frequency of natural disasters.

“California’s fires have also exposed a critical vulnerability in our financial system. As homeowners face the daunting task of rebuilding with insufficient insurance, banks are left holding the financial losses, with many smaller community banks in California at particular risk. Without adequate regulatory measures to address climate-related financial risks, this crisis could spiral into a national economic disaster.

“The current situation is not just about homes and insurance—it’s about the financial security of the entire country. As wildfires continue to devastate communities, systemic risks that can affect all sectors of the economy are becoming even more obvious. The Federal Reserve and other regulatory bodies must act urgently to require banks to disclose their exposure to climate-related risks and take meaningful steps to safeguard the financial system from these inevitable dangers and shocks.”

You can find the report here.

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