"The financial services industry is committed to effective resolution and recovery planning through the living wills process. The firms have taken meaningful, concrete steps to ensure their plans are credible and that no firm is too big to fail. The living wills process builds on the many improvements that have made the U.S. financial system stronger, safer and more simple, including the doubling of capital and liquidity, and structural changes to reduce risk and streamline business models."
Brian Moynihan, Chairman of the Financial Services Forum, today issued the following statement regarding the news that Rob Nichols will be leaving his position as President and CEO of the Forum for the American Bankers Association: "Rob has been a skillful Forum leader during a consequential decade for the financial system. On behalf of the members, I thank Rob for his service and wish him continued success as an effective voice in Washington helping policymakers better understand the important role that banks of all sizes play in driving the U.S. and global economy."
"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.