John,

The key to a bank’s resiliency is its buffer of capital. If a bank is under-capitalized, it can lack the cash on hand to absorb losses and meet its obligations, resulting in bank failure.

But the big banks like to flirt with disaster, because gambling with investors’ money is where their biggest payoffs can be found. If it all melts down like it did in 2008, they can assume, the taxpayers will step in with bailouts.

After the 2008 crisis, banks’ capital requirements were beefed up to help stabilize the industry and prevent further collapse. But under the Trump administration, capital requirements were loosened back to dangerous levels.  

This resulted in several big bank failures in 2023, touching off fears of a bigger meltdown: Silicon Valley Bank, Signature Bank, and First Republic Bank.

Now, Biden appointee Michael Barr on the Federal Reserve Board is working to prevent future bank collapses by proposing a crucial strengthening of capital requirements.

Sign the petition today to tell the Federal Reserve Board of Directors they must increase the capital requirements for large banks now.

Of course, the big banks are opposing the proposed capital requirements, as these would curtail their investments in risky speculative endeavors that could result in big wins for a few top executives.

They prefer not to have to build in these protections, as limiting their play money means they would have to invest more time and energy in more constructive activities such as making loans to small businesses.

But it’s the right thing for the economy, to prevent further bank failures, and to increase banks’ investments in building communities. The banks will only take on higher capital requirements when required by the Fed.

Tell the Federal Reserve Board: stand firm against the banking industry’s lobbying! Establish increased capital requirements for the big banks.

Thank you for helping to prevent the devastating effects of future bank failures.

- Amanda

Advocacy Fund
Democracy for America
Advocacy Fund