March 22, 2023
Media contact: National Consumers League – Katie Brown, firstname.lastname@example.org, 202-823-8442
Washington, D.C. – The National Consumers League is calling on Congress and the Biden Administration to pass long-overdue reforms and roll back the 2018 deregulations that contributed to the collapse of regional banks like Silicon Valley Bank. Absent such action, it is likely that consumers’ faith in the banking system will continue to be put at risk with negative consequences for the entire American economy.
The following statement is attributable to Sally Greenberg, NCL Chief Executive Officer:
“The public should not be on the hook for bankers’ poor risk management. Consumers deserve a full explanation of what went wrong, from improper financial administration to poor governmental oversight. To reduce the risk of such meltdowns happening in the future, those responsible – including executives and regulators – must be held accountable.”
In 2018, the National Consumers League (NCL) joined with dozens of other public interest organizations in opposing the banking deregulation law known as the Economic Growth, Regulatory Relief, and Consumer Protection Act. This month, the collapse of multiple banks highlighted the risk of allowing these institutions to operate without scrutiny. Silicon Valley Bank in particular escaped stress testing and enhanced liquidity requirements as a result of the 2018 deregulation. Last week, NCL endorsed legislation introduced by Senator Elizabeth Warren and Representative Katie Porter that would reverse the 2018 banking deregulation provisions.
About the National Consumers League (NCL)
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit nclnet.org.