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Problem: Wall Street banks are large firms. Accepting deposits and making home mortgages is only a small part of what the biggest banks do to make money and maximize profits for their investors. Their trading arms will also often invest in high-risk ventures that could pay big — or lose big.
There is nothing inherently wrong with banks betting their profits in order to make more money. The main problem is when banks don’t simply use their own money for these high-risk bets, but also use their customers’ money. This created two problems that led to the 2008 financial crisis and taxpayer bailout. First, it put the life savings of ordinary people – who are in no position to gamble with their money — at risk. Second, it put the overall banking system at risk because so much money was being gambled with.
Solution: The new Wall Street reform law will institute what is called the “Volcker Rule”, a reform advocated by former Federal Reserve Board Chairman, Paul Volcker. The Volcker Rule is intended to get banks out of the business of placing high-risk bets with other people's money.
Regulators at the Federal Reserve are in the process of hammering out how exactly the Volcker Rule will be implemented.
Learn more: New York Times, 10/11/11, With Volcker Rule, Wall Street Braces for Change
PORTLAND -- OSPIRG Foundation's Trouble in Toyland report has helped identify dangerous toys for 35 years. But 2020 is unique, and as Americans have worked, learned and played from home to protect themselves from COVID-19, children could be more susceptible to certain toy-related hazards.
Here’s a guide to your rights depending on how you pay
This FTC settlement must be a wake-up call to phone service providers so they do more to protect consumers. If not, the FTC must be vigilant in going after companies that enable the immoral practice of preying on consumers. And the FCC should require providers to block spoofed calls that we all know are scams.
Being proactive and demanding can help keep you and your family safe
The Stop the Debt Trap Alliance, a coalition of organizations representing diverse constituents across Oregon delivered a letter to Gov. Kate Brown and Oregon legislative leadership urging them to take action to protect Oregonians from the economic impacts of COVID-19, especially those who are already economically vulnerable
Ask the Federal Reserve to implement a strong Volcker rule and end Wall Street's risky bets.
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