1. United States
2. Calif.
3. Letter

Today I take pen in hand to write and express my grave concern about reports that the Federal Reserve is planning to cut approximately 30 percent of staff in its Division of Supervision and Regulation. Did we learn nothing the last time we did this? The near collapse of large portions of our economy was a direct result of under-capitalized banks and a laissez faire attitude of neglect during the Bush Administration. Fast forward to today: This decision could severely undermine our financial system's stability and safety, potentially leading to another devastating financial crisis, on the Republican’s watch. The importance of robust supervision and regulation in our banking system cannot be overstated. The staff in the Fed's Division of Supervision and Regulation play a crucial role in overseeing financial institutions, ensuring compliance with rules, and maintaining the overall health of our financial system. Reducing this workforce by nearly a third would significantly impair the Fed's ability to carry out these critical functions effectively. This proposed staff reduction appears to be part of a broader and deeply troubling trend of deregulation that favors Wall Street interests over those of hardworking Americans. Such actions increase the risk of big bank failures, taxpayer-funded bailouts, executive misconduct, and widespread economic devastation for ordinary citizens. As your constituent, I urge you to take immediate action to prevent these dangerous cuts. Please press Federal Reserve Board Chair Jerome Powell for detailed answers regarding the current size of the Fed's workforce, any planned reductions, and how the Fed intends to maintain adequate supervision of large financial institutions with limited staff. Strong regulation and supervision are our best defenses against financial instability and economic hardship. I implore you to stand firm against any attempts to weaken these vital protections for the American people. Thank you.