Banking Crisis Spurs Debate on Regulatory Power and Responsibility

Lawmakers praise the federal takeover of First Republic Bank and the sale of its assets to JP Morgan as a successful public-private collaboration to protect the US financial system. However, efforts to pass new legislation in response to the bank failures are fizzling, with Republicans cautioning against new regulation and Democrats focusing on a 2017 bank deregulation bill. The Federal Deposit Insurance Corporation released a report outlining options for deposit insurance reform, while Democrats called for a more robust congressional response to the bank failures and compensation clawbacks for bank executives. It remains unclear whether the collapse of First Republic will revive interest in banking regulation legislation.