WASHINGTON, D.C. – The financial crisis of 2008 that cratered the economy, cost millions of jobs and wiped-out trillions in retirement savings was the result of reckless behavior by big banks that treated the subprime housing market like a casino. When the housing bubble burst and the Wall Street casino went bust, the big banks were the first in line for a $700 billion taxpayer bailout. Today, many of the same bailed out banks have launched a 7-figure ad campaign against commonsense proposed federal rules to help prevent another financial crisis. The industry opposes new limits to risky behavior beyond their means by increasing minimum capital requirements for banks with at least $100 billion in assets – reform that follows the collapse this year of three mid-size banks that made risky investments they could not afford to lose under Trump-era deregulation. The industry front group behind the ads, Financial Services Forums, represents “chief executives at eight of the biggest U.S. banks,” including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, Morgan Stanley, BNY Mellon and State Street.
The same big Wall Street banks that brought down the economy in 2008 yet still secured a massive taxpayer funded bailout are now opposing fair safeguards against another financial meltdown. What working families really can’t afford is to risk another near-trillion-dollar bailout just so big banks can enrich their investors with millions more in dividends and share buybacks. If history is any judge, Wall Street banks always choose greed over the stability of the financial system when laxer regulation presents the opportunity – and it’s always everyday families who are stuck with the bill when things go south.”
Accountable.US’ Liz Zelnick.
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