We believe the Obama Administration should create a more secure and stable banking system.

European banks are in the process of being required to take on more capital reserves dependent upon the level of risk inherent in their investment portfolios. The US government should model regulatory reform after the recent developments in Europe. By forcing banks to take on significantly more capital relative to risk, riskier investments will become less attractive and banks will get back to lending to main street. This will help to create jobs and eventually assist in boosting the real economy. We should also require that moving forward any losses absorbed by the US government and taxpayers be limited to no more than 50% of the loss anticipated at the time of the bailout (to be adjusted as actual losses occur). This too mirrors what is happening in Europe.