Dems Play the BLAME GAME – Targeting Trump
(RestoreAmericanGlory.com) – A group of Democrats led by Sen. Elizabeth Warren of Massachusetts and Rep. Katie Porter of California is going to be unveiling legislation on Tuesday that would bring back many of the bank regulations that were removed under then-President Donald Trump in 2018. The new regulations would potentially fix the issues that caused the Silicon Valley Bank’s collapse.
NBC News was the first to report the legislation which would repeal a law that had been passed on a bipartisan basis in 2018 during the Republican-led Congress. The law had eased the regulations set out under Dodd-Frank on midsize banks. Under the changed law, banks that were “too big to fail” were set to have anywhere between $50 billion and $250 billion in assets.
Warren said that in 2018 she had spoken up against the effects of Congress deciding to roll back the Dodd-Frank protections. She added that banks were likely to “load up on risk to boost their profits and collapse, threatening our entire economy.” As she noted, that was exactly what had happened that led to the collapse of the bank. This is why she was proposing legislation that would help repeal “the core of Trump’s bank law.”
The Warren-Porter bill would bring back the thresholds that had been established in 2010, which required banks to meet the greater capital requirement and pass stress tests in order to avoid another bank collapsing in the way that SVB and Signature Bank did last week.
The legislation is set to be introduced with a number of co-signers including Sens. Tammy Baldwin, D-Wis., Bob Casey, D-Pa., Sen. John Fetterman, D-Pa., and Reps. Pramila Jayapal, D-Wash., the chair of the progressive caucus, and Ro Khanna, D-Calif., who represents SVB’s district.
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