“Banks like SVB-which had become the 16th largest bank in the country before regulators shut it down on Friday-got relief from stringent requirements, basing their claim on the laughable assertion that banks like them weren’t actually ‘big’ and therefore didn’t need strong oversight.” “Regulators, including the Federal Reserve chair Jerome Powell, then made a bad situation worse, letting financial institutions load up on risk,” wrote Warren, recalling what happened after President Donald Trump signed the act into law. Fifty Republicans and 17 Democrats in the Senate, and 225 Republicans and 33 Democrats in the House, voted for the deregulation legislation. Wall Street chief executives and their lawyers and lobbyists spent millions to pass the “ economic growth” act, and they scored their biggest triumph with support from both political parties. banking system: These recent bank failures are the direct result of leaders in Washington weakening the financial rules,” argued Warren. “No one should be mistaken about what unfolded over the past few days in the U.S. “Silicon Valley Bank’s implosion is the largest failure of a US bank since 2008-and it was totally avoidable,” Porter explained, as federal officials moved to protect uninsured depositors amid bankers begging for bailouts and regional bank stocks tanking. In 2018, Republicans and some Democrats caved to Wall Street and passed a law that lets certain banks take more risk.” Porter, who literally wrote the textbook on banking regulation when she was a law professor, was referring to the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act, which SVB President Greg Becker and other major bankers lobbied for in what turned out to be a successful effort to ease regulations that President Barack Obama had signed into law following the 2008 financial meltdown. Amid the chaos associated with the collapse of California’s Silicon Valley Bank, and anxiety over the instability of other major banks, Representative Katie Porter (D-Calif.) reminded Americans that “Congress played a real role in Silicon Valley Bank’s collapse.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |