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Financial Regulatory Reform

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New Rules of the Road for the Financial Sector  

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Global Engagement

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America's economic prosperity depends on active engagement with the global economy.

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Competitive Tax Rates

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Competitive tax rates fuel economic growth and job creation.

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Engagement with China

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The U.S.-China economic relationship is the most important bilateral relationship in the world today.  

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Economic Value of Large Financial Institutions

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Large financial institutions provide significant value to the U.S. economy and American investors, business owners, and savers.

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Forum President Rob Nichols responds to Simon Johnson’s New York Times Economix blog post

In Simon Johnson’s Economix blog post today, he insists that “the arguments in favor of keeping the global megabanks…are very weak or nonexistent.”  Perhaps Mr. Johnson hasn’t considered the following points.

Financial institutions of all sizes are critically important to our economy.  Large institutions provide significant and unique value – in the sheer size of credits they can deliver, in the array of products and services they can provide, and their geographic reach – that smaller institutions simply cannot.  Such capabilities are particularly important to large, globally active corporations and contribute directly to economic growth and job creation.  Breaking up even well-managed and well-capitalized large banking companies would merely send the business of globally active corporations to foreign banks – forfeiting our nation’s status as a global financial leader and the jobs that go with them.

Large institutions active in many markets across the globe also help integrate global stock, bond, and foreign exchange markets, making those markets more modern, liquid, and efficient.  And large, globally active institutions help make credit and other financial products and services more available in emerging market economies, expanding trade flows, opening foreign markets to U.S. goods and services, thereby bolstering economic growth and job creation.

An economy of the size and complexity of the U.S. economy needs financial institutions of all sizes, business models, and market strategies – including large, diversified, globally active banks.  And to remain a global economic leader, we must not allow politically convenient rhetoric to bury this truth.

 

Rob Nichols

President and CEO

Financial Services Forum

 

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The Financial Services Forum is a non-partisan financial and economic policy organization comprising the CEOs of 18 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.

Welcome to ForumBlog. This is where our policy team analyzes the latest proposals, ideas, and news surrounding financial sector regulatory reform, trade, and the economy. Our goal is to provide thoughtful insights on the issues impacting the intersection of Wall Street and Washington, as we 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.