Averting the Next Financial Crisis

Access to capital and liquidity are the lifelines of any American business—whether it’s an entrepreneur using his personal credit card to fund his startup business, a mid-size company launching an initial public offering, or a large global company drawing on its line of credit from its bank. Financial institutions play an important role in ensuring these businesses have access to funding, acting as lenders and investors, or facilitating transactions between two parties. As the U.S. economy has expanded over the past several decades, the importance and complexity of financial institutions has increased significantly—to the point where the failure of some combination of large, highly leveraged, highly interconnected financial institutions could pose a threat to the financial stability of the United States.

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