Too Big to Fail & Systemic Risk (Including Systemic Risk)

The Wall Street financial crisis and government intervention of 2008 affirmed that the nation’s largest megabanks are “too big to fail”—so big and interconnected that the government will not allow them to fail.

As ICBA details in its “End Too-Big-To-Fail” study, too-big-to-fail distorts free markets, incentivizes risky behavior, leaves taxpayers on the hook, and creates unfair competitive advantages for the largest banks. Meanwhile, community banks face oppressive regulatory burdens as a direct result of megabank misdeeds.

A less concentrated and more diverse financial system would decrease systemic risk, improve competition and innovation, and increase the availability of consumer credit. ICBA and the nation’s community banks are dedicated to ending too-big-to-fail.

Articles & Press Releases

Title Publication Date
Treasury Recommends Reforming Megabank Liquidation Authority NewsWatch Today Article 02/22/18
ICBA: More, Not Fewer, Community Banks Needed NewsWatch Today Article 02/08/18
ICBA Commends Fed on Wells Fargo Penalty NewsWatch Today Article 02/06/18
Fed Restricts Wells Fargo’s Growth Following Abuses NewsWatch Today Article 02/05/18
“Small Enough to Jail” Documentary Nominated for Oscar NewsWatch Today Article 01/24/18
Minn. Fed Proposes Community Bank Relief in TBTF Report NewsWatch Today Article 01/11/18
ICBA Supports Senate Community Bank Regulatory Relief Agreement Press Release 11/13/17
ICBA: Compliance Costs Exacerbate Industry Consolidation Press Release 10/23/17
ICBA Denounces Megabanker Claim That U.S. Overbanked NewsWatch Today Article 10/23/17
ICBA Denounces Megabanker Claim of Too Many Banks Press Release 10/20/17
Fine: Wells Fargo Is Still Not a Community Bank NewsWatch Today Article 10/06/17
Wells Fargo Hearing Shows Arbitration Fallout NewsWatch Today Article 10/04/17
ICBA Tackles Wells Fargo, Grassroots in New Op-Eds NewsWatch Today Article 10/02/17
SEC Chairman on Hill Following Hack NewsWatch Today Article 09/25/17
Wells Fargo, Equifax Execs Addressing Senate Panel Next Month NewsWatch Today Article 09/22/17
FTC Encourages Credit Freezes Following Equifax Hack NewsWatch Today Article 09/22/17
ICBA Seeks Hearing on Wells Fargo Abuses NewsWatch Today Article 09/12/17
ICBA’s Fine Calls for Removal of Wells Fargo Board NewsWatch Today Article 09/07/17
ICBA’s Cam Fine Reacts to Latest Wells Fargo Scandal News Press Release 09/06/17
ICBA Statement on Minneapolis Fed Plan to End Too-Big-To-Fail Press Release 11/16/16

Letters to Congress

Title Recipient Date
Senators Crapo and Brown
Senator Vitter
Representative Capuano

Letters to Regulators

Title Recipient Date
Federal Reserve Bank of Minneapolis
OCC, Federal Reserve, and FDIC
Secretary of Labor Thomas Perez
CFTC, FDIC, Federal Reserve, OCC and SEC
Federal Reserve
Federal Reserve


Title Committee Presenter Date
Senate Subcommittee On Financial Institutions and Consumer Protection
Written Statement


Title Content Type Date