March 29, 2023
Washington, D.C.
The conservative movement opposes further bailouts to banks, and any efforts by the Federal Reserve or regulators to federalize the country’s banking system as they are contrary to the free enterprise system. Ongoing instability in the nation’s banks, in large part, has been caused by both federal monetary and fiscal recklessness—including $6 trillion of excessive spending by the Biden administration. It has been exacerbated by banking institutions focusing on non-financial factors such as environmental, social, and governance and diversity, equity, and inclusion initiatives rather than sound financial management practices.
Any future federal actions must avoid perpetuating the moral hazard that has plagued past federal interventions, and only rewards bad and risky business decisions—as was the case with Silicon Valley Bank. We are also concerned that Dodd-Frank and the “too big to fail” doctrine gives the industry giants a safety net and a competitive advantage over smaller banks. This will only lead to further consolidation of the banking industry and put community and state banks in jeopardy.
Deposit insurance remains systemically important to the soundness of the banking system. However, efforts by federal regulators unilaterally and retroactively to lift the threshold above the existing limit of $250,000 should be opposed. In the case of Silicon Valley Bank, roughly 90 percent of deposits were above the insurance cap. Many of these accounts were held by politically-connected investors, and the regulators actions reek of partisanship. Even worse would be to backstop bank investors. Federal law is clear that depositors are protected up to a limit and attempts situationally to adjust or expand that limit will only serve to amplify the risky behaviors which precipitated the recent collapse of Silicon Valley Bank.
Congress must also vigilantly push back on any efforts to circumscribe the independence of community and state banks. Small banks should not be on the hook for the continued bailouts of multi-billion dollar banks, nor should the federal government create incentives for continued consolidation in the banking sector through costly and unnecessary red tape. Our country’s banking system is unique for its robust entrepreneurial energy that spurs the creation of new banks and every federal emergency action should aim to enhance this vibrancy.
The same skepticism should apply to any attempt to push a central bank digital currency as a structural remedy, or to regulate out of existence cryptocurrencies, which are private sector competitors to government monopoly control of money. A central bank digital currency may be used to invade the financial privacy of American citizens and possibly lead to the creation of a national social credit system—as has happened in other nations that fail to protect basic civil liberties.
Ultimately, the U.S. banking system is in a precarious position because of reckless federal policy. Rampant spending has fueled an inflation spiral that the Biden administration and the Federal Reserve have failed to address. Constraining federal spending and paring back burdensome and counterproductive regulation are the single best ways for the president and Congress to protect the solvency of banks, restore the stability and soundness of our currency, and prevent a systemic and painful financial crisis.
| The Honorable Edwin Meese III Attorney General President Ronald Reagan (1985-1988) |
The Honorable J. Kenneth Blackwell Chairman, Conservative Action Project Chairman, CNP Action, Inc. |
| Steve Moore Co-Chair Committee to Unleash Prosperity |
William L. Walton The Bill Walton Show Resolute Protector Foundation |
| Jenny Beth Martin Chairman Tea Party Patriots Citizen Fund |
Kelly J. Shackelford, Esq. President and CEO First Liberty Institute |
| Bob Carlstrom President AMAC Action |
David N. Bossie President Citizens United |
| L. Brent Bozell III Founder and President Media Research Center |
The Honorable Bob McEwen U.S. House of Representatives Former Member, Ohio |
| Lori Roman President ACRU Action Fund |
The Honorable Tony Perkins President Family Research Council |
| Myron Ebell Director, Center for Energy and Environment Competitive Enterprise Institute |
Alfred S. Regnery President Republic Book Publishers |
| The Honorable Becky Norton Dunlop White House Advisor President Ronald Reagan (1981-1985) |
The Honorable Paul S. Teller, Ph.D. Executive Director Advancing American Freedom |
| The Honorable Jim DeMint Chairman, Conservative Partnership Institute Member, US Senate (SC 2005-2013) |
Ed Corrigan Vice Chairman, Conservative Action Project President & CEO, Conservative Partnership Institute |
| Terry Schilling President American Principles Project |
Tom Jones President American Accountability Foundation |
| David Bozell President ForAmerica |
Chad Connelly Founder and President Faith Wins |
| Lt. Gen. William G. Boykin (Ret.) Executive Vice President Family Research Council |
Cleta Mitchell, Esq. Senior Legal Fellow Conservative Partnership Institute |
| The Honorable T. Kenneth Cribb, Jr. Chief Domestic Advisor President Ronald Reagan (1987-1988) |
The Honorable David McIntosh President Club for Growth |
| Scott T. Parkinson Vice President for Government Affairs Club for Growth |
The Honorable Gary L. Bauer President American Values |
| Andrew Roth President State Freedom Caucus Network |
The Honorable Donald Devine Director U.S. Office of Personnel Management, Ronald Reagan (1981-1985) |
| The Honorable James C. Miller III Budget Director for President Reagan, 1985-1988 |
The Honorable Ken Cuccinelli II Sr. Fellow Center for Renewing America |
| Kimberly Fletcher Founder & President Moms for America |
Iain Murray Vice President Competitive Enterprise Institute |
| John Berlau Director of Finance Policy Competitive Enterprise Institute |
Craig Shirley Reagan Biographer Presidential Historian |
| Rod D. Martin Founder and CEO Martin Capital, Inc. |
Guillermo J. Aragon Chief Strategy Officer Martin Capital, Inc. |
| Christina Murphy, Esq. President The Martin Foundation |
Lourdes Cosio Campaign for the American Future |
| Jay Mount President MDS Communications Corporation |
Judson Phillips Founder Tea Party Nation |
| Alan Sears Founder Alliance Defending Freedom |
Khadine Ritter Chairman Eagle Forum of Ohio |
| Sean Noble President American Encore |
Trent England Executive Director Save Our States |
| Lee Beaman CEO Beaman Ventures |
Michael Lunsford Executive Director Citizens For A New Louisiana |
| Kristen A. Ullman President Eagle Forum |
Andresen Blom President Hawaiian Values |
| Nick Kerin State Director, Pennsylvania State Freedom Caucus Network |
Michelle Easton President Clare Boothe Luce Center for Conservative Women |
| Darin Gaub Co-founder and National Spokesman Restore Liberty |
Richard Manning President Americans for Limited Government |
| Jenna Ellis Attorney and Radio Host American Family Association |
Kathleen Patten President and CEO American Target Advertising |
| Shannon O. Royce, J.D. President Christian Employers Alliance |
Melvin Adams President Noah Webster Educational Foundation |
| Penna Dexter Co-host Point of View Radio |
Richard Rounsavelle Trustee MRC |
| Collin Moseley Director Illinois, State Freedom Caucus Network |
Seton Motley President Less Government |
| Evan Newman State Director, South Carolina State Freedom Caucus Network |
Tom DeWeese President American Policy Center |
| Connie Hair State Director, Louisiana State Freedom Caucus Network |
Richard A. Viguerie Chairman American Target Advertising |
| The Honorable Richard D. Hayes State Representative State of Texas HD 57 |
Jessie Rubino State Director, Wyoming State Freedom Caucus Network |
| Mallory Staples Director State Freedom Caucus Network |
Elaine Donnelly President Center for Military Readiness |
| The Honorable George K Rasley Jr Managing Editor ConservativeHQ.com |
C. Preston Noell III President Tradition, Family, Property, Inc. |
| Peggy Dau Co-Founder NationsNet.org |
Dr. Jerome R. Corsi, Ph.D. Founder and CEO Corstet LLC and TheTruthCentral.com |
| William Haygood Shaker CEO Washington Marketing Group |
Mario Navarro da Costa Director, Washington Bureau Tradition, Family, Property |
| Dr. Shannon L. McCollough President One Plus One Foundation |
Kevin D. Freeman Founder NSIC Institute |
| Paavo Ensio Chairman Universal Minerals Group |
Nancy Schulze Founder, CEO RCW Speakers |
| Eunie Smith President Emeritus Eagle Forum |
Saulius “Saul” Anuzis President 60 Plus Association |
| James L. Martin Founder/Chairman 60 Plus Association |
Ralph A. Rebandt II President Michigan Lighthouse Ministries |
| Allen Hebert Chairman American-Chinese Fellowship of Houston |
Joan Holt Lindsey President Lindsey Communications |
| Suanne Edmiston State Director in Arizona State Freedom Caucus Network |
The Honorable Peter J. Thomas Chairman The Conservative Caucus |
| Tim Macy Chairman Gun Owners of America |
Steven Utroska Mississippi State Director State Freedom Caucus Network |
| Charles J. Cooper Assistant Attorney General, President Ronald Reagan (1985-1988) Cooper & Kirk PLLC |
Kelly M. Kullberg Senior Fellow American Association of Evangelicals (AAE) |
| David B. Kullberg Executive Director Christians for A Sound Economy (CASE) |
Gary Marx President The Concord Fund |
| Amb. Hank Cooper Reagan’s Chief Defense and Space Negotiator Former SDI Director |
Dr. Allen Unruh Founder National Abstinence Clearinghouse |
| Kay R. Daly President Coalition for a Fair Judiciary |
Ron Armstrong President Stand Up Michigan Inc. |
| Sheryl Kaufman Corporate Chief Economist, Retired Phillips Petroleum Company |
Sandy Rios Director of Governmental Affairs AFA |
| Paul Gessing President Rio Grande Foundation |
The Honorable Mike Hill Former Member Florida State Representative |
| Richard Manning President American for Limited Government |
Maria Nate State Director, Idaho State Freedom Caucus Network |
| Dr. Katarina Lindley Physician GCS |
Jordan Mason South Dakota State Director State Freedom Caucus Network |
| Jack Park Conservative Activist and Donor |
All organizations listed for IDENTIFICATION purposes only.
