WASHINGTON, D.C.—Stephen Hall, Legal Director and Securities Specialist, issued the following statement on the release of a special report detailing the banks’ pattern of illegal conduct, which promises to get worse under the Administration’s de-regulatory policies:

“The largest banks in the U.S. have a shocking but largely overlooked track record of violating the law. It spans decades and includes virtually every type of financial crime. This report shows that the pattern is continuing, with violations ranging from facilitating sex trafficking to market manipulation, fraud, and discrimination. Consumer complaints and violations under the consumer protections laws have risen substantially in recent years, providing further evidence of the banks’ misconduct.

“This pattern continues to cause widespread and sometimes devastating financial harm to millions of everyday Americans who have been gouged by illegal fees, had their cars towed away in unlawful repossessions, or suffered other abuses.  Illegal conduct by banks and their executives also inflicts broader harm. Market manipulation hurts countless investors; the failure to comply with anti-money laundering rules facilitates a host of sordid crimes; and when smaller banks fail due to illegal or risky behavior, bank shareholders and depositors can suffer huge losses.

“The Trump Administration’s policies are likely to make the problem worse by weakening the rules that help curb illegal behavior and by limiting the tools supervisors use to detect bank misconduct. The Administration is also downsizing the agencies charged with enforcing the law, walking away from pending and even settled enforcement actions, and handing out pardons for those who have committed egregious financial crimes. The Administration’s retreat from strong banking oversight and enforcement threatens a new surge in illegal conduct as banks are emboldened to violate the law. That means more harm to American consumers, more bank failures, and more systemic instability that threatens the entire economy. Reversing the trend will require halting the Administration’s relentless effort to weaken the bank regulation framework; re-establishing strong banking supervision rules and practices; and above all, making aggressive enforcement of those standards a top priority.”

The report is available online 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.