Just because our financial system is becoming more complex and interconnected does not necessarily mean the institutions within it must follow suit by becoming larger. Complexity, interconnectedness, and size became core issues as the financial crisis unfolded and continue to plague our financial system. Despite assurances from federal regulators and lawmakers large financial institutions with concentrated positions in risky assets continue to pose a significant threat to our still fragile financial markets.
As a former Georgia State Senator along with having served several roles in the community banking arena, I understand the concerns of the small investor, the retiree, and even the student in need of a loan. And as these constituents continue to play a vital role in the framework of society, I find it critical that their desire for financial safety become a priority as our nation develops financial reform measures. I am inspired to lead the organization, 'Stop Too Big to Fail' for this reason; the root of reform must begin by breaking up too-big-to-fail banks, thereby ending the notion that a single institution can pose a systemic and catastrophic risk.
The House of Representatives recently passed legislation to tax all financial institutions whose assets meet a $10 billion threshold in order to earmark the funds for the next bailout. Many of the institutions that would be taxed under these provisions will never receive a bailout in the event of failure, and instead will simply pass fees along to unwitting investors and retirees in order to cover the cost of this bailout tax. Stop Too Big to Fail urges lawmakers to refrain from exploiting everyday investors by dismantling the leveraged and interconnected institutions.
I strongly encourage those who have not been to the website stoptoobigtofail.com to visit and learn more about why the break-up of too-big-to-fail institutions is vital to a healthy economy. Also, when you visit please watch my Fox News interview so that you may gain some insight into the components of real financial reform.
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