Forum Institutions “Play an Important and Central Part in the Economy”
Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer joined the hosts of CNBC’s “Squawk Box” and Bloomberg TV’s “Balance of Power” recently to discuss the health of large, U.S. financial institutions. Fromer said the nation’s large, diversified financial institutions are “significantly stronger” and play “an important and central part in the economy.”
In the past decade, significant progress has been made to make the financial system safer and stronger and regulators have new tools to address any instability that may arise. America’s largest financial institutions are equipped to support consumers, businesses, investors, and communities across the country, even during times of financial or economic distress.
On Strength & Safety of Large Financial Institutions:
“We are significantly stronger, and the reason for that is that these institutions hold very significant amounts of capital and liquidity since the crisis. We have stronger supervision, that I don’t think we had before the crisis. We have a process of stress testing to demonstrate that these institutions are strong and can serve the economy at all times. We also have new tools that the government has, that institutions have worked together on, to ensure that a severely distressed institution has a process in place to safely unwind and manage that situation as well.” (Source: Bloomberg’s Balance of Power, 9/17/18)
On Large Financial Institutions’ Role in the Economy:
“I think if you look at the reforms that have been made and you look at the leadership of these institutions and you look at the risk-management processes that they’ve put in place, which are quite significant. And then you look at the contributions of these largest institutions to the economy, which are extremely significant—the $4 trillion in lending to consumers and businesses. They play an important and central part in the economy.” (Source: CNBC’s Squawk Box, 9/13/18)
On Preparing for the Next Risk:
“The largest institutions that I have represented have never been stronger. I think they will continue to be a source of strength during any future period of any potential economic distress, and I think we should make sure that we’re looking at all other corners of the financial services industry to be aware of whatever connections are existing, that we’re protected against those.” (Source: Bloomberg’s Balance of Power, 9/17/18)
“The process that these institutions have gone through, these detailed road maps of their institutions…the largest institutions that are part of the Forum membership have reduced the subsidiaries of those institutions by about 50 percent. Just going through the process of preparing for this has led to the simplification of the organizations.” (Source: CNBC’s Squawk Box, 9/13/18)
To watch Fromer’s interview on CNBC click here or view it below.
Fromer’s interview with Bloomberg can be found here and below.