NAFCU says banks still 'too big to fail,' calls for modern Glass-Steagall
NAFCU, in a new white paper released Wednesday, is calling for members of Congress to discussin 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.
"American families and small financial institutions are still recovering of the bank-led 2008 financial crisis. With support now on both sides of the political aisle, we believe Congress should seriously consider evaluating a modernized Glass-Steagall Act to reduce the impact of 'too big to fail,'" said NAFCU President and CEO Dan Berger. "As we look to the future and economists hint at another recession on the horizon, we need to make sure history does not repeat itself. Wall Street banks cannot be allowed to bring the financial system – and a nation full of consumers – to ruin again."
In the report, NAFCU highlights that enacting a modern Glass-Steagall Act has bipartisan support – from former Speaker of the House Newt Gingrich to Sen. Elizabeth Warren, D-Mass., and which the administration has said it will consider. It also cites investigations into the cause of the 2008 financial crisis: the repeal of the Glass-Steagall Act in 1999 with the enactment of the Gramm-Leach-Bliley Act led to weakened regulation and supervision of traditional banking and likely set the stage for the crisis.
"Federal deposit insurance should not be used to subsidize big banks’ reckless gambles with their consumers’ deposits," NAFCU states in the report. "Consumers should have confidence in the system and know that their financial institution cares more about maintaining a mutually-beneficial relationship with its consumers than allowing private investors to influence their decisions all in the name of profits."
A 21st century Glass-Steagall would:
- protect consumers against future financial crises and help end the policy of "too big to fail";
- ensure traditional depositories and community-based financial institutions can continue to thrive in a stable financial marketplace;
- reduce the regulatory inequalities and moral hazard that arises when large banks take risks on consumer deposits to generate profits; and
- improve overall financial stability in times of severe stress by separating commercial and investment banking.
The white paper offers NAFCU's vision for the future state of financial services, provides a detailed background on the Glass-Steagall Act and financial crisis, and outlines political and economic considerations for strengthening the financial system.
Download the full report.
Add to Calendar 2020-05-26 14:00:00 2020-05-26 14:00:00 Corporate Social Media Presence: High Risk, High Reward Having a social media presence has become a near-necessity in today’s constantly-connected world. Social media provides a unique avenue to reach customers (and potential customers) in ways that more traditional media has never been able to accomplish. But in addition to these unique benefits, a company’s social media presence also presents unique risks. Jay Williams, an attorney at Buckley LLP, will discuss these risks, as well as the ways companies can effectively mitigate them. This webinar will address recommended practices for a company’s social media presence, including developing a social media policy, understanding enforcement implications and regulatory guidance. PROGRAM UNDERWRITTEN BY Key Takeaways Review the risks associated with using social media and how to put effective controls in place to manage those risks Discuss the importance of a social media policy and best practices for developing it Identify the unique electronic discovery challenges that social media presents Understand the social media guidelines that financial regulators have developed Register Now For On-Demand Access$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until May 26, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) C-suite executives Marketing staff Communication staff Social media staff Compliance staff Risk staff Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Review the risks associated with using social media and how to put effective controls in place to manage those risks. Discuss the importance of a social media policy and best practices for developing it. Identify the unique electronic discovery challenges that social media presents. Understand the social media guidelines that financial regulators have developed. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Communications and Marketing – Non-Technical & Regulatory Ethics - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
Credits: NCCO, NCRM, CPE
Program underwritten by Mastercard
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