Systemic Risk Designation Improvement Act of 2016

Floor Speech

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Ms. GABBARD. Mr. Speaker, I am rising today in strong opposition to H.R. 6392. It is a dangerous bill that puts the economic security of millions of Americans at risk.

Let's not forget that just 8 short years ago, the lives of Americans all across the country were shaken and devastated by the worst economic crisis since the Great Depression. The livelihoods of hardworking families were put at risk and millions of Americans lost their homes and saw their lifesavings wiped out all because of risky banking practices and the overgrown ``too big to fail'' banks. At that time, Republicans and Democrats railed against the travesty that these banks exacted on the American people.

This bill threatens to unravel the very protections that were put in place to prevent a repeat of this economic crisis. It would gut the higher capital requirements on 27 banks that together hold over $4 trillion in assets--nearly one-quarter of all banking system assets in the United States--and water down the independent authority of the Federal Reserve to regulate large bank risk.

Eight years ago, the failure of large regional banks like Countrywide, Washington Mutual, and Wachovia--major subprime mortgage lenders leading up to the crisis--created shock waves throughout our financial system and hurt the American people. This bill would scale back the Federal Reserve's ability to regulate these banks, placing greater risk and burden on the backs of the American people.

I urge my colleagues to stand with the people and vote against this dangerous legislation.

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