Let’s Not Put Foxes in Charge of Hen Houses

Daily Action
Written By Peter Cantone

Toxic Management And Weak Supervision Puts All of Us at Risk

QUICK READ:  In response to last weekend's banking crisis, a group of Democratic senators have proposed a reversal of Trump era banking deregulation. In addition, they have asked for higher oversight standards and an expanded capacity to punish executives at failed banks.

CONTENTS:

BACKGROUND

“It’s been quite a weekend,” wrote Heather Cox Richardson in her March 12th Letters from An American about tumultuous goings-on in U.S. banking. Just two days earlier, federal regulators closed Silicon Valley Bank (SVB) as depositors began pulling out large sums of money, requiring SVB to sell investments which had lost significant value due to rising interest rates, and leading to dramatic losses. Days later, Signature Bank too was shuttered thereby generating a broader fear of another financial crisis like that of 2008.

Although bank failures are not uncommon—a few fail every year—what made the SVB failure send out shock waves was its heavy concentration in one industry and the fact that most of its technology start-up accounts fell outside of FDIC protection range.

A group of Democratic senators have proposed legislation to reverse deregulations passed under Trump, which weakened the 2010 Dodd Frank Act. In addition, President Biden has asked for higher oversight standards and an expanded capacity to punish executives at failed banks.

According to Senator Elizabeth Warren (D-MA), deregulation in 2018 “permitted banks like SVB and Signature to load up on risks, run up their profits, pay their executives giant bonuses, and eventually blow the banks to pieces.” All this, she argued, put American families in danger so that a few C.E.O.’s could “get a new corporate jet and add another floor to their new corporate headquarters.”

Join us in person for a meeting with staff from the office of Senator Merkley’s office this Tuesday, March 21 from 11:30-12:30 at 121 SW Salmon St, Portland, OR 97205.

ACTION One: Call the Senate.

Script for Oregon Senators

SEN. MERKLEY: Portland office: 503-326-3386 | D.C. office: 202-224-3753

My name is [--] and I'm a constituent from [city], Oregon [zip code]. We need to reverse Trump-era banking deregulation and hold banks to higher standards of oversight. Moreover, we need to expand our capacity to punish executives at failing banks with stricter penalties for negligence.

SEN. WYDEN: Portland office: 503-326-7525 | D.C. office: 202-224-5244

My name is [–] and I’m a constituent from [city], Oregon [zip code]. We need to reverse Trump-era banking deregulation and hold banks to higher standards of oversight. Moreover, we need to expand our capacity to punish executives at failing banks with stricter penalties for negligence.

ACTION TWO: Call the House.

Script for Suzanne Bonamici (OR-01)

Oregon office: 503-469-6010 | DC office: 202-225-0855

My name is [–] and I’m a constituent from [city], Oregon [zip code]. We need to reverse Trump-era banking deregulation and hold banks to higher standards of oversight. Moreover, we need to expand our capacity to punish executives at failing banks with stricter penalties for negligence.

Script for Cliff Bentz (OR-02)

Medford office: 541-776-4646 | DC office: 202-225-6730

My name is [–] and I’m a constituent from [city], Oregon [zip code]. We need to reverse Trump-era banking deregulation and hold banks to higher standards of oversight. Moreover, we need to expand our capacity to punish executives at failing banks with stricter penalties for negligence.

Script for Earl Blumenauer (OR-03)

Oregon office: 503-231-2300 | DC office: 202-225-4811

My name is [–] and I’m a constituent from [city], Oregon [zip code]. We need to reverse Trump-era banking deregulation and hold banks to higher standards of oversight. Moreover, we need to expand our capacity to punish executives at failing banks with stricter penalties for negligence.

Script for Val Hoyle (OR-04)

Eugene office: 541-465-6732 | DC office: 202-225-6416

My name is [–] and I’m a constituent from [city], Oregon [zip code]. We need to reverse Trump-era banking deregulation and hold banks to higher standards of oversight. Moreover, we need to expand our capacity to punish executives at failing banks with stricter penalties for negligence.

Script for Lori Chavez-DeRemer (OR-05)

Salem office: 503-588-9100 | DC office: 202-225-5711

My name is [–] and I’m a constituent from [city], Oregon [zip code]. We need to reverse Trump-era banking deregulation and hold banks to higher standards of oversight. Moreover, we need to expand our capacity to punish executives at failing banks with stricter penalties for negligence.

Script for Andrea Salinas (OR-06)

Salem office: 503-385-0906 | DC office: 202-225-5643

My name is [–] and I’m a constituent from [city], Oregon [zip code]. We need to reverse Trump-era banking deregulation and hold banks to higher standards of oversight. Moreover, we need to expand our capacity to punish executives at failing banks with stricter penalties for negligence.

FURTHER READING

Peter Cantone
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