Rep. Tulsi Gabbard Votes Against Increasing Big Bank Risk
Washington, DC—Today, Congresswoman Tulsi Gabbard (HI-02) voted against H.R.6392, legislation that puts the economic security of millions of Americans at risk. The bill would undermine capital requirements put in place on large banks after the 2008 financial crisis, and water down the independent authority of the Federal Reserve to regulate large bank risk. The bill passed the House today by a vote of 254-161.
“I rise today in strong opposition to H.R. 6392, a dangerous bill that puts the economic security of millions of Americans at risk.
“Let’s not forget that just 8 short years ago, the lives of Americans all across the country were shaken and devastated by the worst economic crisis since the Great Depression.
“The livelihoods of hard-working families were put at risk, millions of Americans lost their homes and saw their life savings wiped out—all because of risky banking practices and the overgrown ‘too big to fail’ banks.
“At that time Republicans and Democrats railed against the travesty that these banks exacted on the American people
“This bill threatens to unravel the very protections we put in place to prevent a repeat of this economic crisis. It would gut higher capital requirements on 27 banks that together hold over $4 trillion in assets—nearly a quarter of all banking system assets in the United States—and water down the independent authority of the Federal Reserve to regulate large bank risk.
“8 years ago, the failure of large regional banks like Countrywide, Washington Mutual, and Wachovia—major subprime mortgage lenders leading up the crisis—created shockwaves throughout our financial system and hurt the American people. This bill would scale back the Federal Reserve’s ability to regulate these banks, placing greater risk and burden on the backs of the American people.
“I urge my colleagues to stand with the people and vote against this dangerous legislation.”
Background: Rep. Tulsi Gabbard has long-supported true financial reform, including a restoration of the Glass-Steagall Act, breaking up the big banks, and increased capital requirements for the nation’s largest banks. She has supported legislation like the Return to Prudent Banking Act, which would reinstate provisions of the Glass-Steagall Act to keep investment banking separate from commercial banking, as well as prevent the largest banks from engaging in speculative trading.