The Board of Governors of the Federal Reserve System recently published their annual Supervision and Regulation Report which measures the financial condition of major U.S. banks, including loan growth and liquidity in the banking system. Overall, 45% of U.S. banks with more than $100 billion in assets received a supervisory rating of “less than satisfactory.” That’s not good. As we learned during the 2008 crisis, the stability of these large banks is essential to the health of our banking system.
Furthermore, this rating should not sit well with hardworking Americans who bailed out many banks during that last major crisis. As bank lobbyists continuously push for more deregulation, it's prudent to remember what happened a decade ago with bank bailouts and a market crash. We need more regulation, not less, if banks continue to receive less than a “C” grade on their report cards.
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