Congress Divided on Response to Bank Failures

Congress is divided on whether any legislation is needed to prevent future bank failures, with some lawmakers skeptical that a closely divided Congress will act at all. The House Financial Services Committee has announced its first hearing for March 29, featuring at least two witnesses. Democrats in both chambers have rallied around two legislative proposals, while Republicans say the laws already in place were sufficient to prevent the bank failures. The recent bank failures create an opportunity to shape the political narrative for next year’s election.