FOR IMMEDIATE RELEASE: Mar. 20, 2026
CONTACT: Jarice Thompson, jarice@ourfinancialsecurity.org
Statement of Oscar Valdés Viera, Senior Policy Analyst of Private Equity & Capital Markets at Americans for Financial Reform on new bank capital proposals:
The new bank capital proposals by the federal bank regulatory agencies is a dangerous step in the wrong direction. Robust capital standards make banks more resilient, reduce the likelihood of bailouts, and limit the kind of fragility that can spiral into a broader financial crisis. The current capital buffers helped banks withstand shocks like the 2020 economic recession and the 2023 series of regional bank failures without setting off a broader meltdown. Weakening them now, amid geopolitical chaos, turbulence in private markets, a potential AI-related bubble inflating, and signs of a slowing economy, is like closing your umbrella in the middle of a downpour because you are not getting wet. When banks are allowed to operate with less capital, the gains flow to executives and wealthy shareholders through higher payouts, stock buybacks, while workers, families, and the broader economy are left to bear the costs when things go wrong.
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