In Aftermath of Silicon Valley Bank Collapse, Duckworth, Durbin Join Warren, Porter, Dozens of Democratic Lawmakers in Introducing Bill to Repeal 2018 Roll Back of Critical Dodd-Frank Protections
The Trump Banking Law Rolled Back “Too Big to Fail” Rules; Created Conditions for Collapse of Silicon Valley Bank
[WASHINGTON, D.C.] – U.S. Senators Tammy Duckworth (D-IL) and Dick Durbin (D-IL) this week joined U.S. Senator Elizabeth Warren (D-MA), U.S. Representative Katie Porter (D-CA-47) and dozens of Democrats in Congress to introduce the Secure Viable Banking Act, legislation that would repeal Title IV of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 following the collapse of Silicon Valley Bank (SVB) and Signature Bank.
“In 2018, I knew that decreasing oversight would increase the risk of a financial crisis, which is why I voted against the bill that rolled back the very guardrails that could have ensured that risky behavior at SVB and other banks could be caught early,” said Duckworth. “I’m proud to join my colleagues to introduce the Secure Viable Banking Act so we can reinstitute the guardrails that were rolled back and help ensure Americans can rely on and be confident in their banking system—and their individual banks as well.”
“In 2010, we instituted new, critical regulations for banks under the Dodd-Frank Act to prevent another financial crisis. Now, we are facing the consequences of the Trump Administration’s dangerous decision to roll back those regulations against the better advice of financial experts,” said Durbin. “We do not want the collapse of Silicon Valley Bank to become a trend. I’m joining my colleagues to introduce the Secure Viable Banking Act to reinstate the critical oversight needed to keep banks in check and return peace of mind to American families.”
“In 2018, I rang the alarm bell about what would happen if Congress rolled back critical Dodd-Frank protections: banks would load up on risk to boost their profits and collapse, threatening our entire economy – and that is precisely what happened,” said Warren. “President Biden called on Congress to strengthen the rules for banks, and I'm proposing legislation to do just that by repealing the core of Trump’s bank law.”
“Americans deserve to know their money is safe when they deposit it in the bank,” said Porter. “In 2018, politicians rolled back critical regulations protecting Americans’ deposits—ignoring warnings from financial experts in favor of Wall Street special interests. I’m calling on Congress to restore common-sense guardrails that keep corporate greed in check and restore confidence in our financial system.”
Title IV of the Economic Growth, Regulatory Relief, and Consumer Protection Act raised the asset threshold at which a bank is considered and regulated as a “systemically important financial institution” to $250 billion, exempting SVB and other mid-sized banks from regular stress testing and enhanced liquidity, risk management and resolution plan, or “living will,” requirements. The lawmakers' new bill would repeal these dangerous regulatory roll backs, which invited banks to load up on risk and increase profits, restoring critical Dodd-Frank protections.
Duckworth, Durbin, Warren and Porter were joined by U.S. Senators Tammy Baldwin (D-WI), Cory Booker (D-NJ), Richard Blumenthal (D-CT), Ed Markey (D-MA), Bernie Sanders (I-VT), Mazie Hirono (D-HI), Martin Heinrich (D-NM), Bob Menendez (D-NJ), Bob Casey (D-PA), John Fetterman (D-PA), Sheldon Whitehouse (D-RI), Peter Welch (D-VT), Brian Schatz (D-HI), Ben Ray Luján (D-NM) and Chris Murphy (D-CT), as well as U.S. Representatives Pramila Jayapal (D-WA), Jim McGovern (D-MA), Hank Johnson (D-GA), Jerrold Nadler (D-NY), Dwight Evans (D-PA), Bonnie Watson Coleman (D-NJ), Betty McCollum (D-MN), Jan Schakowsky (D-IL), Marcy Kaptur (D-OH), Jesús “Chuy” García (D-IL), Barbara Lee (D-CA), Stephen Lynch (D-MA), Suzanne Bonamici (D-OR), Ro Khanna (D-CA), John Larson (D-CT), Mark Takano (D-CA), Jimmy Gomez (D-CA), Jamaal Bowman (D-NY), Eric Swalwell (D-CA), Mark Pocan (D-WI), Jamie Raskin (D-MD), Alexandria Ocasio-Cortez (D-NY), Earl Blumenauer (D-OR), Jake Auchincloss (D-MA), Rosa DeLauro (D-CT), Nanette Barragan (D-CA), John Garamendi (D-CA), Ayanna Pressley (D-MA), Ruben Gallego (D-AZ), Cori Bush (D-MO) and Robert Garcia (D-CA).
Full text of the Secure Viable Banking Act can be found here.
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