Too Big To Fail

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.

Date Title Publication
10/14/2016 Fine on CNBC: Megabanks Have Branches, Community Banks Have Roots NewsWatch Today
10/06/2016 Fine: Community Banks the Wells Fargo Alternative NewsWatch Today
10/05/2016 Agencies Post Public Sections of Megabank Resolution Plans NewsWatch Today
10/04/2016 Fine: Community Banks Won’t Be Dragged into Wells Fargo Mess NewsWatch Today
10/04/2016 Fine: Don’t Let Wells Fargo Slow Community Bank Relief NewsWatch Today
09/30/2016 Romero Rainey on CNBC: Community Banks Are Not Wells Fargo NewsWatch Today
09/29/2016 Wells Fargo’s Stumpf Returns to Capitol Hill Today NewsWatch Today
09/22/2016 Wells Fargo Testimony Starting Gun for Added Reg Burden NewsWatch Today
09/21/2016 ICBA to Congress: Community Banks Are Not Wells Fargo NewsWatch Today
09/21/2016 Jorde: Community Bankers Stunned by Wells Fargo Scandal NewsWatch Today
09/20/2016 ICBA on Fox Biz: Wells Fargo Shows Lack of Accountability NewsWatch Today
09/16/2016 Brookings Paper: Big Banks No Safer Since Crisis NewsWatch Today
09/15/2016 Fine on CNBC: Wells Fargo Scandal Shows Regulatory Double Standard NewsWatch Today
08/05/2016 ICBA: New Funding Ratio Should Target Largest Banks NewsWatch Today
08/04/2016 St. Louis Fed Chief: Other Countries Less Concerned About TBTF NewsWatch Today
08/03/2016 Comment Letter on Net Stable Funding Ratio Letter to Regulators
05/24/2016 Fine: Freedom to Fail Absent on Wall Street NewsWatch Today
05/24/2016 Hoenig: Risk-Based Capital Complicit in Moral Hazard NewsWatch Today
05/11/2016 ICBA Statement on Remarks from JPMorgan Chase’s Jamie Dimon News Release
03/08/2016 Ending Too-Big-To-Fail Priority Policy Resolution
09/28/2015 ICBA Statement on Global Capital Index News Release
07/20/2015 ICBA Supports Fed Rule Requiring Stronger Capital Levels at Megabanks News Release
06/04/2015 Consistent Enforcement Policy For Community Banks and Large Banks Letter to Regulators
06/01/2015 ICBA Statement to Federal Regulators: “No Bank Should be Too Big to Fail nor Too Big to Jail” News Release
05/29/2015 Consistent Enforcement Policy For Community Banks and Large Banks Letter to Regulators
05/06/2015 ICBA Statement on Bill to Break Up Too-Big-To-Fail Megabanks NewsWatch Today
02/12/2015 Support for the Subsidy Reserve Act (H.R. 888) Letter to Congress
08/06/2014 ICBA Commends FDIC and Federal Reserve for Ensuring Living Wills Are More Than Just a ‘Paper Exercise’ News Release
07/31/2014 Too-Big-To-Fail Subsidies Threaten Economy, Community Banks, and Taxpayers Written Statement
07/31/2014 GAO Report on TBTF Advantage Expected During Senate Banking Hearing NewsWatch Today
07/08/2014 Concentration Limits on Large Financial Companies Letter to Regulators
04/01/2014 ICBA Statement on IMF Study Estimating Too-Big-To-Fail Subsidy at $70 Billion in U.S., $300 Billion in Europe News Release
03/25/2014 New York Fed Research Shows Too-Big-To-Fail Funding Advantage News Release
02/26/2014 Support for Regulation of Systemically Important Financial Institutions Letter to Regulators
01/08/2014 Too-Big-To-Fail Subsidies Exacerbate Regulatory Burden Testimony
01/08/2014 ICBA to Congress: Burgeoning Financial Concentration Dangerous to Nation’s Economy News Release
11/14/2013 ICBA Thanks GAO for Report on Government Assistance for Bank Holding Companies News Release
09/30/2013 ICBA: Hold Wall Street Bad Actors Personally Accountable News Release
06/26/2013 ICBA: Greatest Threat to Financial System is Too-Big-To-Fail News Release
06/26/2013 Examining How the Dodd-Frank Act Written Statement
06/13/2013 Supervision & Regulation Assessments for Bank Holding Co. & Savings & Loan Holding Co. with Total Consolidated Assets of $50B or More & Nonbank Financial Co. Supervised by the Federal Reserve Letter to Regulators
04/24/2013 ICBA Lauds Brown-Vitter Legislation Taking on Too-Big-To-Fail News Release
04/17/2013 Small Banks Will Benefit From Big-Bank Breakup Link
04/09/2013 Wait on TBTF Reform? That's Tempting Fate Op Ed
03/21/2013 ICBA: Survey Shows Americans Want Washington to Address Too-Big-To-Fail Problem News Release
03/18/2013 ICBA: Evidence Mounting against Too-Big-To-Fail News Release
03/15/2013 ICBA: Senate Report Shows Continued Threat of Too-Big-To-Fail News Release
03/14/2013 Ending Too-Big-To Fail Written Statement
03/11/2013 ICBA Stands with Sens. Brown and Vitter Against Wall Street Spin Machine News Release
01/24/2013 Too Big to Jail? News Release
01/17/2013 ICBA Backs Dallas Fed Plan to Restructure Too-Big-To-Fail Firms News Release

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