Reforming Wall Street
The financial crisis of 2008 destroyed millions of jobs and crushed the retirement savings of American families. There is no higher priority than making sure that we never face such a crisis again. As a businessman with a background in manufacturing and the real economy, Bill Foster recognizes that an efficient and well-regulated financial services sector is essential to our economic growth. As a member of the Financial Services Committee, Bill played a strong role in crafting legislation that will prevent the irresponsible practices that led to this crisis.
The Wall Street Reform legislation:
The Benefits of Well-Regulated Financial Markets
As a businessman, Bill Foster recognizes the importance of a stable and well-regulated Banking and Financial Services industry. Stable banking relationships and reliable access to credit were the key to the growth of Bill’s business, and he is heartbroken when he sees the damage done to businesses in the real economy from the chaos in our financial markets.
It is important to realize that this financial crisis was not inevitable and was not the result of a normal business cycle. Many countries avoided this calamity. This crisis was the result of a thoughtless deregulation of our financial markets driven by special interests and lobbyists, and it will happen again if we do not understand what happened and take appropriate action to restore stability and accountability to Wall Street.
The chart above shows the history of bank failures in the United States from 1864 to 2009. Prior to 1933, the banking system was essentially unregulated and hundreds of banks failed every year – banks were simply not safe places to deposit money.
The key lesson here is that financial regulation is not the enemy of economic progress – in fact, thoughtful and competent regulation is essential to the stability needed for growth of the real economy.
NEXT: Fiscal Responsibility