Democratic lawmakers, including Sen. Elizabeth Warren (Mass.) and Rep. Katie Porter (Calif.), unveiled legislation Tuesday to repeal a set of Trump-era policies that loosened regulations on small and medium-sized banks, NBC News reported, following the collapse of three regional banks in less than a week—though the push for stricter rules faces long odds in a GOP-controlled House.
The legislation, which was obtained by NBC, would repeal a 2018 policy signed by former President Donald Trump that loosened some financial regulations that had been imposed under the 2010 Dodd-Frank Act—which itself was passed after the Great Recession.
The bill focuses on a provision in the 2018 law that said only banks with over $250 billion in assets are subject to enhanced requirements including stress tests and risk management practices, up from the Dodd-Frank Act’s $50 billion threshold.
Warren had blasted the 2018 bill—which was led by Republicans but backed by dozens of House and Senate Democrats—in a New York Times op-ed published Monday morning, calling on Congress to restore the provisions in the act.
It follows the failure of California-based Silicon Valley Bank, which was closed by state regulators Friday, as well as the closure of New York-based Signature Bank, which was shuttered on Sunday, both of which had assets above $50 billion but below $250 billion.
This is a developing story and will be updated.
Democrats Blame SVB Collapse On Trump-Era Regulatory Rollbacks—But GOP Opposes Stricter Rules (Forbes)
What To Know About Silicon Valley Bank’s Collapse—The Biggest Bank Failure Since 2008 (Forbes)
What Happened To Signature Bank? The Latest Bank Failure Marks Third Largest In History (Forbes)