FOR IMMEDIATE RELEASE:
January 17, 2013
Laena Fallon, 202-457-8783
WASHINGTON, D.C. – Rob Nichols, President and CEO of the Financial Services Forum, today released a statement following comments by Dallas Federal Reserve President Richard Fisher – among others – on large financial institutions:
“An economy of the size, diversity, and complexity of the U.S. economy needs financial institutions of all sizes, business models, and market strategies. As Mr. Fisher rightly points out, community banks are an essential aspect of our financial system, but so are mid-sized banks, non-bank financial institutions, and large financial institutions. Each sector of our financial system provides unique and significant value to some aspect of the U.S. economy.
“In keeping with that reality, large diversified banking institutions provide unique value – such as a broad range of products and services, and the availability of large-dollar loans – that smaller institutions simply cannot provide. This capacity is particularly important to globally active U.S. businesses, which increasingly include small- and medium-sized companies, and to the further development of global markets for U.S. goods and services. Both contribute directly and importantly to economic growth and job creation here at home.
“It is also important to note that large financial institutions have made major improvements and are far safer and stronger than they were pre-crisis. The ‘enhanced prudential supervision’ provisions of Dodd-Frank, along with major improvements made by the industry since 2009, have significantly reduced the likelihood of large institution failures. And the orderly liquidation provision included in Dodd-Frank created a credible and workable framework for the controlled wind-down of a major institution, without risk to the taxpayer, in the unlikely event of failure.
“To remain a global economic leader, the United States needs a diverse, efficient and effective financial system to provide the capital, products and services that businesses, small and large, need to grow, create new jobs and boost long-term economic growth.”
The Financial Services Forum is a non-partisan financial and economic policy organization comprising the CEOs of 19 of the largest and most diversified financial services institutions doing business in the United States. The purpose of the Forum is to pursue policies that encourage savings and investment, promote an open and competitive global marketplace, and ensure the opportunity of people everywhere to participate fully and productively in the 21st-century global economy.