WASHINGTON, D.C.— Shayna Olesiuk, Director of Banking Policy, issued the following statement about a comment letter urging the FDIC to strengthen the rules to protect against unfair competition and the known risks of corporate banks.  

“The FDIC has already conducted years of research and analysis about the risks of corporate banks. By the FDIC’s own conclusions, the Agency must prioritize the protection of the financial system and Main Street Americans from the risks, instability, and cost of corporate banks. Repeated warnings from public interest and community organizations, as well as the banking industry, also back this up. The Agency has supervised, studied, and even resolved failing corporate banks for years, but that experience is being cast aside to reconsider basic questions about corporate banks. Simply put, corporate banks need robust oversight from the FDIC; abandoning decades of evidence appears as no more than a delay tactic that once again favors corporations and puts Main Street at risk. 

“The FDIC should instead focus its limited time and resources on nurturing community banks and protecting consumers. This includes strengthening the regulations that apply to corporate banks, rather than abandoning pending rules, as the FDIC did earlier this year.”   

The comment letter is available here.  

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