rich 1.0 Action Network https://actionnetwork.org <link href='https://actionnetwork.org/css/style-embed-v3.css' rel='stylesheet' type='text/css' /><script src='https://actionnetwork.org/widgets/v6/letter/section-956?format=js&source=widget'></script><div id='can-letter-area-section-956' style='width: 100%'><!-- this div is the target for our HTML insertion --></div> Americans for Financial Reform https://actionnetwork.org/groups/afr-advocacy-fund-c4 https://can2-prod.s3.amazonaws.com/groups/default_facebook_images/000/014/858/original/AFR_Action_Network_Default_(1).png?1738796429 Section 956 is a key part of the Dodd-Frank legislation that was passed after the financial crisis of 2008; it directed federal regulators to develop rules to prohibit the use of incentive-based compensation that encourages overly risk bets in the banking industry and other financial institutions. These compensation schemes, of course, were one of the primary causes of the crash in 2008 -- after all, if bank executives are incentivized to place risky bets to increase short-term profits without significant consequences, it’s only natural that they would do so. Unfortunately, -- fourteen years later -- Section 956 has yet to be implemented. Among the six agencies tasked with implementing the legislation, the Federal Reserve is one of the most important – and Fed Chair Jerome Powell has yet to issue a regulation, saying earlier this year, “I would like to understand the problem we’re solving and then I would like to see a proposal that addresses that problem” despite the Federal Reserve itself issuing a report after the 2023 regional bank failures that cited compensation more than 60 times in 90 pages. The multi-agency process to enact Section 956 regulations is, of course, complicated -- but each of the agencies involved, including the Federal Reserve, needs to hear from Congress that further delays are unacceptable. These reforms are necessary not just to safeguard the financial system, but also to safeguard the workers and the public who are most affected by these crises -- particularly Black and Brown working families who were hit the hardest. Your Representative or Senator sits on one of the committees that will hear testimony from Fed Chair Jerome Powell next week -- so click “start writing” to send them a message urging them to ask hard-hitting questions about why Section 956 has yet to be implemented now. https://actionnetwork.org/letters/section-956