The National Association of Federally-Insured Credit Unions (NAFCU) President and CEO Dan Berger issued the following statement ahead of today’s Senate Judiciary Committee hearing discussing big bank bankruptcy and the 2008 financial crisis:
“The ‘800-pound gorilla’ in the room today is that many American families and Main Street financial intuitions are still recovering from the bank-led 2008 financial crisis,” said NAFCU President and CEO Dan Berger. “Today’s hearing is a reminder that in the event of an economic downturn, the problems posed by ‘too big to fail’ financial institutions have sizeable, real-life implications across the entire U.S. economy. That is why we believe Congress should consider a modernized Glass-Steagall Act to reduce the impact of 'too big to fail.”
NAFCU, in a recently released White paper, has called for members of Congress to discuss creating a modernized Glass-Steagall Act in order to protect consumers from banks that are “too big to fail”. The association is supportive of reform efforts that allow credit unions and other financial institutions to compete without putting consumers at risk.