Perry Campaign Press Release - Fact Sheet: On Wall Street And Banking Reform

If elected President, Governor Perry will not bail out a single bank on Wall Street.

The Federal Reserve and Congress should consider strengthening the new rule requiring the Global Systemically Important Banks (G-SIBs) to harbor additional capital requirements to ensure taxpayers are not on the hook for bailouts in the future.

Requiring banks to separate their commercial lending and investment banking practices should be considered. Or, alternately, require these banks to hold a significant additional capital cushion for their trading activities.

Dodd-Frank's "orderly liquidation authority" should be replaced with a true, orderly bankruptcy process so that banks of any size can fail.

The bankruptcy code should be reformed to make bailouts obsolete. One idea that holds merit comes from the Hoover Institute, which proposed adding a new Chapter 14 to the U.S. Bankruptcy Code with this in mind.

There should be regulatory breathing room for banking with digital currencies like Bitcoin.

Community banks, banks run as partnerships and asset management firms should be exempt from Dodd-Frank's regulations.

The Consumer Financial Protection Bureau (CFPB) needs to be reformed so that its leadership and funding are accountable to Congress.

The CFPB needs to be put under a strict regulatory budget.

On Fannie Mae And Freddie Mac:

Congress should wind down Fannie Mae and Freddie Mac.

While Congress is in the process of winding down Fannie and Freddie, the two entities should maintain strict capital cushions like big banks.

Congress should also phase in a requirement that all loans sponsored by Fannie and Freddie are accompanies by higher, more responsible down payments.

The trend of pushing more and more home loans to Fannie and Freddie should be ended in order to start rejuvenating the private insurance market.

Fannie and Freddie should limit the cash-out refinancing of homes to 80 percent of its value.