The failure of Silicon Valley Bank has led to renewed debate over a 2018 bill signed into law by President Trump that rolled back banking regulation. At the time it was passed, some experts predicted the exact scenario that befell SVB over the last week, as an easing of oversight helped lead to the collapse of the nation's 16th largest bank and the biggest bank to go under since the Great Recession of the late 2000s.
from Rep. Kevin McCarthy, R-Calif., then the House Majority Leader and now speaker of the House, in the effort.
In the end, 17 Democratic senators joined Republicans in passing the bill, allowing it to overcome the legislative filibuster and make its way to Trump’s desk in May. Thirty-three Democrats supported it in the House, which was controlled by a Republican majority at the time. “Authors of the bill argue that the regulators could still enforce tighter rules on some of these banks,” Konczal added. “But history tells us they won’t until it is too late.”
"Today we view funding-risk vulnerabilities as low,” Powell said. “Banks hold low levels of liabilities that are able and likely to run, and they hold high levels of liquid assets to fund any outflows that do occur."“Washington is about to make it easier for the banks to run up risk, make it easier to put our constituents at risk, make it easier to put American families in danger, just so the C.E.O.
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