Conservative Action Project

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
Committee to Unleash Prosperity
William L. Walton
The Bill Walton Show
Resolute Protector Foundation
Jenny Beth Martin
Tea Party Patriots Citizen Fund
Kelly J. Shackelford, Esq.
President and CEO
First Liberty Institute
Bob Carlstrom
AMAC Action
David N. Bossie
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
ACRU Action Fund
The Honorable Tony Perkins
Family Research Council
Myron Ebell
Director, Center for Energy and Environment
Competitive Enterprise Institute
Alfred S. Regnery
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
American Principles Project
Tom Jones
American Accountability Foundation
David Bozell
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
Club for Growth
Scott T. Parkinson
Vice President for Government Affairs
Club for Growth
The Honorable Gary L. Bauer
American Values
Andrew Roth
State Freedom Caucus Network
The Honorable Donald Devine
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.
The Martin Foundation
Lourdes Cosio
Campaign for the American Future
Jay Mount
MDS Communications Corporation
Judson Phillips
Tea Party Nation
Alan Sears
Alliance Defending Freedom
Khadine Ritter
Eagle Forum of Ohio
Sean Noble
American Encore
Trent England
Executive Director
Save Our States
Lee Beaman
Beaman Ventures
Michael Lunsford
Executive Director
Citizens For A New Louisiana
Kristen A. Ullman
Eagle Forum
Andresen Blom
Hawaiian Values
Nick Kerin
State Director, Pennsylvania
State Freedom Caucus Network
Michelle Easton
Clare Boothe Luce Center for Conservative Women
Darin Gaub
Co-founder and National Spokesman
Restore Liberty
Richard Manning
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.
Christian Employers Alliance
Melvin Adams
Noah Webster Educational Foundation
Penna Dexter
Point of View Radio
Richard Rounsavelle
Collin Moseley
Illinois, State Freedom Caucus Network
Seton Motley
Less Government
Evan Newman
State Director, South Carolina
State Freedom Caucus Network
Tom DeWeese
American Policy Center
Connie Hair
State Director, Louisiana
State Freedom Caucus Network
Richard A. Viguerie
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
State Freedom Caucus Network
Elaine Donnelly
Center for Military Readiness
The Honorable George K Rasley Jr
Managing Editor
C. Preston Noell III
Tradition, Family, Property, Inc.
Peggy Dau
Dr. Jerome R. Corsi, Ph.D.
Founder and CEO
Corstet LLC and
William Haygood Shaker
Washington Marketing Group
Mario Navarro da Costa
Director, Washington Bureau
Tradition, Family, Property
Dr. Shannon L. McCollough
One Plus One Foundation
Kevin D. Freeman
NSIC Institute
Paavo Ensio
Universal Minerals Group
Nancy Schulze
Founder, CEO
RCW Speakers
Eunie Smith
President Emeritus
Eagle Forum
Saulius “Saul” Anuzis
60 Plus Association
James L. Martin
60 Plus Association
Ralph A. Rebandt II
Michigan Lighthouse Ministries
Allen Hebert
American-Chinese Fellowship of Houston
Joan Holt Lindsey
Lindsey Communications
Suanne Edmiston
State Director in Arizona
State Freedom Caucus Network
The Honorable Peter J. Thomas
The Conservative Caucus
Tim Macy
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
The Concord Fund
Amb. Hank Cooper
Reagan’s Chief Defense and Space Negotiator
Former SDI Director
Dr. Allen Unruh
National Abstinence Clearinghouse
Kay R. Daly
Coalition for a Fair Judiciary
Ron Armstrong
Stand Up Michigan Inc.
Sheryl Kaufman
Corporate Chief Economist, Retired
Phillips Petroleum Company
Sandy Rios
Director of Governmental Affairs
Paul Gessing
Rio Grande Foundation
The Honorable Mike Hill
Former Member
Florida State Representative
Richard Manning
American for Limited Government
Maria Nate
State Director, Idaho
State Freedom Caucus Network
Dr. Katarina Lindley
Jordan Mason
South Dakota State Director
State Freedom Caucus Network
Jack Park
Conservative Activist and Donor

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