AdvertisementBut lawmakers had been explicitly told that the bill increased the risk of a financial crisis because it relaxed rules designed to strengthen banks in case of an unexpected shock — like the run on deposits last week that resulted in Silicon Valley Bank’s failure. The 2018 legislation rolled back parts of the Dodd-Frank Act, which Congress passed in the wake of the 2008 financial crisis, imposing stiffer regulations on banks with more than $50 billion in assets. Sen. Mark Warner (D-Va.), who helped author the 2018 bank deregulation legislation, defended his work during an interview over the weekend. Warren, however, argued in her op-ed that the kind of mismanagement that took down Silicon Valley Bank wouldn’t have been possible with tougher federal supervision. The vast majority of Silicon Valley Bank’s deposits were over the threshold, meaning they were uninsured and are now getting bailed out.

Source: Huffington Post March 13, 2023 20:30 UTC