58: Institutional Transparency

[Provide for] institutional transparency.

Other Information:

Protecting the Taxpayers: No More “Too Big to Fail” -- For more than a century, the U.S. was the world leader in financial services. The visionary management of capital was the lifeblood of the entire economy. By giving responsible access to credit, it helped small businesses grow, created jobs, and made Americans the best-housed people in history. By funding innovation, financial services underwrote our future. Then came the financial collapse of 2008 and a critical reassessment of the role and condition of financial institutions – most of which, it must be said, were responsible and healthy, especially those closest to their investors and borrowers. In cases of malfeasance or other criminal behavior, the full force of the law should be used. But in all cases, this rule must apply: No financial institution is too big to fail. The taxpayers must never again be on the hook for the losses of Fannie Mae and Freddie Mac. The public must never again be left holding the bag for Wall Street giants, which is why we decry the current Administration’s record of over-regulation and selective intervention, which has already frozen investment and job creation and threatens to make financial institutions the coddled wards of government. A far better approach – protecting consumers and taxpayers alike – is institutional transparency. Banks need to know that they could be at risk, and investors need clear rules that are not subject to political meddling. The same holds true for the equity market regulated by the Securities and Exchange Commission. We propose reasonable federal oversight of financial institutions, practical safeguards for consumers, and – what is crucial for this country’s economic rebound – sound spending, tax, and regulatory policies that will allow those institutions to once again become the builders of the next American century. We strongly support tax reform; in the event we do not achieve this, we must preserve the mortgage interest deduction.

Stakeholder(s):

• Fannie Mae


• Freddie Mac


• Securities and Exchange Commission

Objective(s):

1

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