Bank Deregulation to Unlock $2.6 Trillion in Wall Street Lending
Bank deregulation is poised to unlock $2.6 trillion of lending capacity on Wall Street, potentially boosting financial activity and market liquidity.
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Bank Deregulation
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GOP Blames Biden for Bank Failures After Deregulating Banks Themselves.
Senate Republicans are blaming regulators for failing to spot problems on balance sheets at Silicon Valley Bank and Signature Bank, while insisting that the bank deregulation bill they voted for in 2018 had nothing to do with the bank failures. The Dodd-Frank Wall Street Reform bill imposed special oversight rules on banks with more than $50 billion in assets, but the bipartisan bank bill raised the threshold for those prudential standards so that they were only mandatory for banks with $250 billion in assets. Critics warned the bill would increase the risk of a financial crisis, and the failure of Silicon Valley Bank has been attributed to the rollback of regulations.
Blame Game: Republicans, Senators, and Biden's SVB Bailout
Senate Republicans are blaming regulators for failing to spot problems on balance sheets at Silicon Valley Bank and Signature Bank, despite having voted to deregulate banks in 2018. The Dodd-Frank Wall Street Reform bill imposed special oversight rules on banks with more than $50 billion in assets, but the bipartisan bank bill raised the threshold for those prudential standards so that they were only mandatory for banks with $250 billion in assets. Critics warned the bill would increase the risk of a financial crisis, and the recent failure of Silicon Valley Bank has been attributed to the rollback of regulations.
"Elizabeth Warren proposes clawing back executive bonuses to prevent bank collapses"
Democratic Senator Elizabeth Warren has introduced a bill to repeal Trump-era bank deregulations that she says led to the collapse of Silicon Valley Bank and the closure of Signature Bank. The bill would lower the asset threshold for enhanced prudential measures back to its original $50 billion level. Warren drew a straight line from the 2018 deregulation effort to the 2023 failure of SVB and Signature. The weakened rules permitted banks to load up on risks, run up their profits, pay their executives giant bonuses, and eventually blow the banks to pieces.