Issue Position: Reforming the Banks

Issue Position

The true cost of the financial meltdown caused by our banking system is in the trillions of dollars. TARP, a government fiasco, bailed out banks that the government deemed too big to fail, which rewarded them for wrecking our economy. Unemployment remains high, businesses cannot get loans and consumers cannot finance their homes or cars, yet our largest banks hoard their cash and are more profitable than ever. This must end.

We must have a diverse banking industry that competes for loans and deposits to form the backbone of our innovative economy. So that the taxpayers are never again called upon to bail them out, we must require banks to recapitalize without taxpayer subsidies so that they become willing to expand credit. We will apply antitrust rules to limit bank size. Restoring competition in the banking industry will reduce costs to borrowers and increase loans to entrepreneurs, which will fuel growth. Finally, we must implement a credible plan to end taxpayer support of Freddie Mac and Fannie Mae.

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