Frank Keating, the president and CEO of the American Bankers Association, recently expressed support for the controversial Dodd-Frank Act, saying that dismantling America’s largest banks would hurt American businesses and the economy.
Keating has long advocated against the break-up of America’s largest institutions, though he has expressed support for dismantling “too-big-to-fail” institutions.
“Only five of the [world’s] top 50 banks…are located in the U.S.,” Keating said earlier this year. “Reducing their size would severely diminish their capacity to serve America’s largest businesses. European and Asian banks [would] quickly move to meet our corporations’ banking needs.”
Keating also called for increased accountability at the CFPB and urged members of Congress to demonstrate courage by addressing the looming fiscal cliff.
Additionally, Keating said that, despite Congress’ decision on Thursday to vote against a two-year extension of the Transaction Account Guarantee program, financial institutions across the country are well-capitalized.
“We’re disappointed that the Senate failed to vote on a temporary extension of the FDIC’s Transaction Account Guarantee program,” Keating said. “The TAG program has been fully funded by the banking industry at no taxpayer expense and millions of small businesses and municipal depositors would have valued its continuation during this period of economic recovery. Although we’re disappointed with today’s outcome, America’s banks—with $1.6 trillion in capital—are prepared. Banks already have been communicating about the possible expiration of TAG and will work with their business customers to demonstrate the safety of their deposits.”