"We urge policymakers to reject this tax targeting a small group of companies and instead focus on achieving broad-based, pro-growth tax reform that ensures our economic recovery continues. As the largest financial institutions continue to simplify, reduce risk and leverage, build capital, provide the credit to keep the economy growing, and make the necessary investments to protect customers from cyber threats, it would be counterproductive to layer on one more way to make it more difficult to achieve those public goals.”
The Merchant Financial Cyber Partnership announced the next steps for the two industries to continue working together to strengthen the security of the payments system. Launched in February, the Partnership has succeeded in its goal to work collaboratively across the payments system to enhance security in order to protect customers and their data from cyber threats.
"The financial services industry is strongly committed to working with the Federal Reserve and the FDIC to ensure effective resolution and recovery planning. The industry not only welcomes, but also needs comprehensive and substantive feedback from the regulators on the living will process. Since 2009, substantial changes have made the financial system stronger, including banks' doubling of capital and liquidity, changing compensation structures, and the divestiture of many business lines to simplify the largest institutions.
The GAO report confirms what we have seen in many recent studies: any cost of funding differential large banks once had has been dramatically reduced if not eliminated. Any very small difference remaining is consistent with cost of funding differentials seen in larger businesses across all sectors of the economy. These differences have nothing to do with the expectation of a bailout, but are due to the fact that investors place great value in stability, diversification and liquidity. It is also critical to consider this issue in the context of the many new regulatory costs borne by the largest banks, including much higher capital and liquidity requirements.
“In the years since the financial crisis the industry, Congress, and regulators have implemented a wide range of significant improvements to ensure the strength and resilience of the financial system. Regulators have a host of new tools available, bank capital and liquidity levels have doubled, leverage has been substantially reduced, compensation practices have been aligned with long-term performance, and consumers have strong new protections. Today’s financial system is safer, less complex and more transparent to consumers and investors – and America is setting the global standard for financial system safety and soundness. The financial services industry remains committed to continuing to work to ensure the sector is strong, transparent, and able to provide necessary capital for working Americans without taxpayer dollars ever being put on the hook again.
“We commend Secretary Lew’s leadership on cybersecurity and his call to improve information sharing between the government and private sector. The financial industry is leading the way in combating cyberattacks and has been working diligently in this area for more than 15 years. Our industry’s number one priority is to protect our customers and the economy and we reinforce these efforts every day with financial, CEO and senior leadership support. With extensive collaboration within the industry and the federal government, the financial industry closely monitors the changing threats and adapts to stay ahead. We also urge Congress to quickly pass cyber threat information sharing legislation to further enable us to expand our abilities to fight future attacks.”