Limit the size and power of banks
Banks must be mandated to adhere to equitable banking standards and provide responsible, fair, and transparent financial products to all customers.
Beneficial State Foundation; Source: beneficialstate.org
Break up the biggest banks so they are smaller, simpler, and safer; and strengthen regulations including the Dodd-Frank Act to clarify and enforce rules that will better protect the public and keep Wall Street in check.
Reinstate Glass-Steagall or policy to prohibit proprietary trading and to separate the commercial and investment banking arms of banks, so that banks cannot engage in risky activity that is detrimental to communities.
For Example:
- Several U.S. senators in support of breaking up the big banks introduced a “21st Century Glass-Steagall Act” bill. That bill would separate traditional banks with savings and checking accounts from riskier financial institutions offering investment banking, insurance, and hedge fund and private equity activities. (source: Fundera)
Reform the Community Reinvestment Act by enforcing real penalties for illegal activity and by explicitly including race-based and environmental criteria for bank community development lending.
For example:
- Local organizing efforts in New Orleans led to the community-creation of Housing NOLA’s “Community Development Finance Plan”, a guide for banks and investors to understand the actual needs of affordable housing and business investment in the area. The report has been an important step in helping to ensure banks understand community needs, and receive CRA credit for investments that actually work, and not for efforts that do not serve the community. (source: https://nextcity.org/daily/entry/new-orleans-needs-a-stronger-not-a-weaker-community-reinvestment-act)
