All posts by team

Fact Sheet: Bank Supervision and Climate Risk

In this document, Americans for Financial Reform Education Fund describes how climate risk should be incorporated into the bank supervision and examination process. Climate-related risks comprise both physical and transition risks that can be mapped onto the traditional categories of financial risk: credit, market, liquidity, operational, reputational, legal, and political risk. Safety and soundness concerns are discussed, including 1) correlated losses that are widely expected due to climate change and the decarbonization transition, 2) the high degrees of leverage in climate vulnerable sectors, 3) asset-liability mismatch, 4) securitization, and 5) the use/misuse of insurance and hedging tools by financial institutions.

News Release: Committee Tax Plan Falls Short of Need to Advance Racial and Economic Justice

Today, the House Ways and Means committee released its draft plan for the Build Back Better economic package. It includes many crucial spending items, and some positive tax provisions. But, overall, it fails to meet the moment. Among other things, the package leaves out revenue-raising proposals from the Biden administration that would advance racial and economic justice. We need more dramatic change to the status quo, which benefits Wall Street and the super-rich and harms the rest of us.