WASHINGTON, D.C.— Dennis M. Kelleher, Co-Founder, President, and CEO, issued the following statement on the filing of Better Markets’ Comment Letter to the Federal Deposit Insurance Corporation (FDIC), urging them to adopt improved and enforceable guidelines for corporate governance and risk management structures for the largest banks.
“Unlike most other corporations, the consequences of large banks being poorly run can be catastrophic to innocent hardworking Americans. To avoid that, bank boards of directors are charged with ensuring that banks have robust risk management and internal control frameworks, and effectively overseeing senior management. Unfortunately, those bank boards all failed miserably in 2008, as did the bank boards involved in the 2023 banking crisis, and that contributed significantly to the banking crises, which both times lead to contagion and bailouts. These crises once again demonstrated how inadequate corporate governance is and how much it needs to be strengthened.
“The FDIC’s proposal represents a crucial step towards better protecting the financial system from banking collapses and their fallout by raising the standards and expectations…
