Thread by @RealBankReform

“If the U.S. government ... is now standing foursquare behind all bank deposits in the country, we, the people, should get something in return.”

See @monthly @CarterD about what we need for a stable, fair and equitable financial system. 🧵1/14 washingtonmonthly.com/2023/05/22/a-n…

“[T]he explicit guarantee extended to the globally systemic banks is now extended to everyone,” said Renita Marcellin (@aphisha28)of @realBankRefrom. “We have this implicit guarantee for everyone, but not the rules and regulations that should be paired with [them].” 2/14

What do we need? How about a stable banking system, “essential services—such as deposits, money transfers, and credit—on a universal basis,” and “a strong role for regulatory agencies that protect consumers from abusive practices.” 3/14

When @TheStalwart says that the #BankCrisis of ‘23 means this notion “feels more mainstream because of this tension between private profit in banking and the utility function that everyone expects.” Yes. 4/14

@POTUS Biden should “lean harder into the politics of cracking down on finance.” It’s popular. Witness the public approval of the administration’s fight against junk fees. 5/14

navigatorresearch.org/majorities-sup…

Biden should also advocate for breaking up the biggest banks. “Even if good legislation is doomed, a sustained fight will put critics of #WallStreet on the right side of the issue in advance of 2024, and on the right side of American history.” 6/14

Congress rejected a new Glass-Steagall or capping bank size when it passed Dodd-Frank in 2010. If we’d done it then, we could have avoided the purchase of First Republic by @jpmorgan, which made the biggest bank even bigger. 7/14

Minneapolis Fed prez @neelkashkari is an advocate for breaking up big banks AND raising capital levels to make banks more stable: “Having significantly higher levels of capital is our only chance to build real resilience in our financial system.” 8/14 minneapolisfed.org/article/2023/d…

@BMillRep, a former House member, once called the 2008 financial crisis “an extinction-level event” for Black wealth. “A more stable system is a sine qua non for starting to close the racial wealth gap.” 9/14

Biden should also champion public banking – the idea that the government should provide basic financial services through the post office or another public entity. Here’s a brand-new report on that: 10/14
ourfinancialsecurity.org/2023/05/news-r…

Tougher supervision of banks is not sufficient, but urgently needed. @federalreserve Vice Chair Michael Barr has promised to crack down. “A bolder step would involve stripping supervision and regulatory authority from the Fed.” cc:@Aarondklein 11/14

washingtonpost.com/opinions/2023/…

#DefendCFPB.

#WallStreet and predatory lenders have had @CFPB in their sights for over a decade, and the right-wing Supreme Court might give it to them. An agency that delivered $16 billion in relief to real people is worth fighting for. 12/14

ourfinancialsecurity.org/2023/02/news-r…

When the gov intervened with #SVB, it saved the deposits of very wealthy people and companies. Outrageous. But: “Blaming deposit insurance itself, however much the rescue of SVB depositors sticks in the craw, would be precisely the wrong reaction to this year’s crisis.” 13/14

Deposit insurance has a great, progressive history. Read that and more in the full article 14/end

washingtonmonthly.com/2023/05/22/a-n…

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