To donate by check, phone, or other method, see our More Ways to Give page.

×
      LATEST NEWSOPINIONCLIMATEECONOMY POLITICS RIGHTS & JUSTICEWAR & PEACE
      LATEST NEWS
      OPINION

      deregulation

      A man wheels boxes outside a First Republic Bank office.

      Rewarding Risk Drove First Republic to Failure

      Risk was at the center of every financial upheaval since the 1980s. What can be done to keep history from repeating itself and threatening the banking system, economy, and jobs of everyday people?

      Alexandra Digby
      Dollie Davis
      Robson Hiroshi Hatsukami Morgan
      May 02, 2023

      First Republic Bank became the second-biggest bank failure in U.S. history after the lender was seized by the Federal Deposit Insurance Corp. and sold to JPMorgan Chase on May 1, 2023. First Republic is the latest victim of the panic that has roiled small and midsize banks since the failure of Silicon Valley Bank in March 2023.

      The collapse of SVB and now First Republic underscores how the impact of risky decisions at one bank can quickly spread into the broader financial system. It should also provide the impetus for policymakers and regulators to address a systemic problem that has plagued the banking industry from the savings and loan crisis of the 1980s to the financial crisis of 2008 to the recent turmoil following SVB’s demise: incentive structures that encourage excessive risk-taking.

      Keep ReadingShow Less
      Opinion
      Wall Street
      A worker cleans the exterior of a First Republic bank

      Warren Says First Republic Collapse Shows Deregulation Boosted 'Too Big to Fail' Banks

      "Ultimately taxpayers will be on the hook," said the Democratic senator from Massachusetts.

      Jon Queally
      May 01, 2023

      Sen. Elizabeth Warren said Monday that the latest government bailout of a failing Wall Street institution shows how much the financial system remains rigged in favor of powerful banks and that it is beyond time for Congress to step up with increased oversight and reforms.

      Federal regulators Monday announced they had seized the entirety of First Republic Bank and sold it to JPMorgan Chase for an undisclosed price—the latest fallout from a deregulated banking system in which the U.S. government has stepped in to backstop Wall Street.

      Keep ReadingShow Less
      News
      Wall Street
      U.S. Federal Reserve Chair Jerome Powell testifies

      As Fed Probe Shows Deregulation Fueled SVB Crisis, Warren Says Powell 'Must Be Held Accountable'

      Sen. Elizabeth Warren said the Federal Reserve chair "failed in his responsibility to supervise and regulate banks that posed a systemic risk to our economy."

      Jake Johnson
      Apr 28, 2023

      Sen. Elizabeth Warren said Friday that Federal Reserve Chair Jerome Powell and other officials "must be held accountable" after an internal Fed investigation found that deregulation and major supervisory lapses were partly to blame for the market-rattling failure of Silicon Valley Bank last month.

      The findings of the investigation led by Fed Vice Chair for Supervision Michael Barr were detailed in a 118-page report that Warren (D-Mass.) applauded as "an unflinching assessment of SVB's implosion."

      Keep ReadingShow Less
      News
      fed deregulation
      SIGN UP FOR OUR NEWSLETTER
      Quality journalism. Progressive values. Direct to your inbox.
      Follow Us
      Most Popular

      250,000 Floridians Get Kicked Off Medicaid as DeSantis Rakes in Big Donor Cash

      When 3 Men Richer Than 165 Million People, Sanders Says Working Class Must 'Come Together'

      Of Course It's Greedflation—and Here's How We Stop It

      To Save US Democracy, Tax the Rich at 90%

      'Web of Deception': Syngenta Docs Show Company Tried to Hide Pesticide's Link to Parkinson's

      The War in Ukraine Was Provoked—and Why That Matters to Achieve Peace

      Here's What It Means to Be Anti-Woke: You're Pro-Bigot

      House GOP Plan to Create 'Fake Hysteria' Over Gas Stoves Backfires

      Clarence "Private Jet" Thomas Is Getting People Killed

      Trump Made Over $82 Million From His Businesses in Scotland, Ireland While President

      SUPPORT COMMON DREAMS TODAY
      SUPPORT INDEPENDENT
      JOURNALISM TODAY
      We Can't Do It
      Without You!