WASHINGTON – A report released on Monday by the Office of the Comptroller of the Currency shows that the top nine money center banks together hold 98.9% of all U.S. derivative contracts, with four large banks alone representing 91.3% of the total market. In contrast, regional banks held miniscule amounts of the total derivatives market – less than one percent collectively.
In response, William Moore, the executive director of the Regional Bank Coalition, issued the following statement:
“The OCC’s report is just the latest evidence for what is by now well-established fact: regional banks engage in none of the risky behavior exhibited by the big money center banks. Regional banks don’t pose a systemic risk to the economy, and regulating them as if they do only diverts regulators’ attention from actual threats.
“Members of Congress from both parties have expressed support for legislation that will improve the economy by reforming the arbitrary rules that treat Main Street like Wall Street. We hope they will act.”
About the Regional Bank Coalition: The Regional Bank Coalition is a group of regional banks that support regulation based on risk and business model to ensure safety and soundness. For more information, visit www.regionalbanks.org or follow on Twitter @rgnlbanks.