WASHINGTON, D.C.— Dennis Kelleher, Co-founder, President and CEO, issued the following statement in connection with the Federal Reserve Board’s (Fed) announcement of the results from its climate scenario analysis exercise.
“The results from the Fed’s pilot climate scenario are appalling and alarming. These results don’t just reveal innocuous sounding ‘data gaps’ and ‘modeling challenges.’ They reveal deep and broad deficiencies in basic risk analysis and management at Wall Street’s six largest too-big-to-fail banks, and grossly deficient regulation, management, and preparation to deal with those risks.
“The Fed’s refusal to require banks to properly address and plan for the many obvious, well-known, and growing risks from climate borders on dereliction of its duty to ensure the safety, soundness, and stability of the banking system. The Fed is supposed to be a risk regulator regardless of the source of the risk, but a fear of being accused of being a climate policymaker or climate regulator has caused it to abdicate its responsibilities. The Fed simply must stop caving to the fossil fuel industry, its allies, and sympathizers and being bullied into…
