The Controversial Connection Between Democrats and Banking Deregulation
Democrats are defending their vote for a 2018 banking deregulation bill that President Biden and other members of the party are blaming for last week’s stunning collapse of Silicon Valley Bank and Signature Bank. Proponents of the legislation saw it as a way to provide relief to small and midsize banks that were struggling with rigorous regulations put in place under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted after the 2008 financial crisis. However, a number of Democrats are now blaming that rollback for the failure of Silicon Valley Bank and Signature Bank, putting the measure’s Democratic supporters on the defensive as the banking blame game heats up on Capitol Hill.