{"id":566438,"date":"2023-03-19T00:00:00","date_gmt":"2023-03-18T21:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/democrats-defend-deregulation-vote-amid-banking-blame-game\/"},"modified":"2023-03-19T00:00:00","modified_gmt":"2023-03-18T21:00:00","slug":"democrats-defend-deregulation-vote-amid-banking-blame-game","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/democrats-defend-deregulation-vote-amid-banking-blame-game\/","title":{"rendered":"#Democrats defend deregulation vote amid banking blame game"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27b8bbf011e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27b8bbf011e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/democrats-defend-deregulation-vote-amid-banking-blame-game\/#Democrats_defend_deregulation_vote_amid_banking_blame_game\" >Democrats defend deregulation vote amid banking blame game<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Democrats_defend_deregulation_vote_amid_banking_blame_game\"><\/span>Democrats defend deregulation vote amid banking blame game<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/stabenowdebbie_030123gn01_W.jpg?w=900\" \/><\/p>\n<div>\n<p>Democrats on Capitol Hill are defending their vote for a 2018 banking deregulation bill that President Biden and other members of the party are blaming for last week\u2019s stunning collapse of Silicon Valley Bank and Signature Bank.<\/p>\n<p>Forty-nine Democrats \u2014 33 in the House and 16 in the Senate \u2014 plus Sen. Angus King (I-Maine), who caucuses with Democrats, joined Republicans in 2018 to pass the deregulation bill.<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>Nineteen\u00a0of them are still in the House, all of whom will have to\u00a0face\u00a0voters next year, and\u00a012\u00a0are in the Senate,\u00a0five\u00a0of whom are up for reelection in 2024.\u00a0Sen. Kyrsten Sinema (I-Ariz.), who was in the House as a Democrat in 2018 and voted for the deregulation bill, is also up for reelection next year.<\/p>\n<p>Proponents of the legislation, which former President Trump signed into law, saw it as a way to provide relief to small and midsize banks that were struggling with rigorous regulations put in place under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted after the 2008 financial crisis.<\/p>\n<p>But a number of Democrats are now blaming that rollback for the failure of Silicon Valley Bank and Signature Bank \u2014 which were exempted from the regulations in 2018 \u2014\u00a0putting the measure\u2019s Democratic supporters on the defensive as the banking blame <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> heats up on Capitol Hill.<\/p>\n<p>Asked if she regretted her vote for the bill, Sen. Debbie Stabenow (Mich.), a member of Democratic leadership who is retiring next year, told The Hill, \u201cNot at all.\u201d<\/p>\n<p>\u201cIt was very important to me to make sure that our small banks, community banks and credit unions, who did not cause the financial crisis in 2008, were given some flexibility,\u201d she said.<\/p>\n<p>Rep. Josh Gottheimer (D-N.J.) \u00a0also said he does not regret his vote for the rollback, calling the Dodd-Frank regulations \u201cimpossible\u201d for small, medium-sized and regional banks.<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>\u201cYou had a set of rules that literally <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lied to the largest few institutions in the country and also to our small and medium-size and regional banks. It was impossible, and they were all actually merging and selling to the larger banks and you had no community banks left in this country,\u201d he said during an interview with CNN on Tuesday.<\/p>\n<p>The 2018 bill \u2014 formally known as the Economic Growth, Regulatory Relief and Consumer Protection Act \u2014\u00a0exempted some banks from stricter Federal Reserve oversight and stress tests mandated under the Dodd-Frank Act by raising the asset threshold for those regulations from $50 billion to $250 billion.<\/p>\n<p>Silicon Valley Bank and Signature Bank both fell within that range.<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>\u201cLet\u2019s be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed,\u201d Sen. Bernie Sanders (I-Vt.) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sanders.senate.gov\/press-releases\/news-sanders-statement-on-silicon-valley-bank\/\">wrote in a\u00a0statement<\/a>.<\/p>\n<p>Sen. Elizabeth Warren (D-Mass.), who voted against the 2018 bill and is now leading an effort to undo the legislation, said Silicon Valley Bank (SVB) and Signature Bank \u201cwould have been subject to stronger liquidity and capital requirements to withstand financial shocks\u201d if Congress and the Federal Reserve had not rolled back stricter oversight.<\/p>\n<p>\u201cThey would have been required to conduct regular stress tests to expose their vulnerabilities and shore up their businesses,\u201d she <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2023\/03\/13\/opinion\/elizabeth-warren-silicon-valley-bank.html\">wrote in a\u00a0New York Times op-ed<\/a>. \u201cBut because those requirements were repealed, when an old-fashioned bank run hit S.V.B\u200c., the\u200c bank couldn\u2019t withstand the pressure \u2014 and Signature\u2019s collapse was close behind.<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>Silicon Valley Bank, a California-based institution that mainly catered to startups, was taken over by federal regulators last Friday after a massive run on the bank amid liquidity issues. Days later, state regulations seized Signature Bank, a New York-based establishment that largely did business with real estate companies and law firms, following another rush by customers to withdraw deposits.<\/p>\n<p>The Signature Valley Bank collapse is now the second-largest bank failure in American history, and the Signature Bank break down is the third-largest.<\/p>\n<p>Sen. Tim Kaine (D-Va.), who stood by his vote for the 2018 deregulation bill, told The Hill that the Old Dominion lost a chunk of its banks between 2010 and 2018 because small banks, faced with having to hire compliance departments, decided to sell to larger institutions, which led to branches closing and employees being laid off.<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>\u201cMy community banks, as you get a few years into implementation, kind of laid this issue down. They said, hey look, a law that was designed to stop too big to fail is also accelerating too small to succeed,\u201d Kaine, who is up for reelection in 2024, said.<\/p>\n<p>\u201cCommunity banks, when the [2018] banking bill was put together, they\u2019re like, we strongly support this. They were strongly supportive and they still are, and they\u2019ve done well in Virginia in the last few years,\u201d he added.<\/p>\n<p>Sen. Gary Peters (D-Mich.) also said he does not regret his 2018 vote in support of the deregulation bill, and cautioned against jumping to conclusions about the cause of the collapses.<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>\u201cI don\u2019t know all the facts,\u201d Peters said. \u201cRight now we got an investigation going on; the feds are gonna look at exactly what happened. I don\u2019t think we should jump to any conclusions, so we actually investigate and look at the facts.\u201d<\/p>\n<p>The Justice Department and Securities and Exchange Commission are both\u00a0investigating Silicon Valley Bank\u2019s collapse, and the Federal Reserve has launched its own probe. The central bank said a review of the probe, which is being led by Vice Chair for Supervision Michael Barr, will be released publicly on May 1.<\/p>\n<p>Sen. Chris Coons (D-Del.), who voted for the 2018 bill, said it is \u201cpremature\u201d to connect the five-year-old bill to last week\u2019s collapse.<\/p>\n<aside class=\"ad-unit ad-unit--mr7_ab\"><\/aside>\n<p>\u201cI think it\u2019s premature to say we know that this action by regulators under the previous administration \u2014 or this action legislatively under the previous administration \u2014 made the difference,\u201d he told The Hill. \u201cWe don\u2019t know that.\u201d<\/p>\n<p>The senator cited other factors that may have led to the bank\u2019s crumbling, including management failure, a failure to plan for inflation risk and regulatory oversight failure.<\/p>\n<p>Warren and Rep. Katie Porter (D-Calif.), however, are drawing a direct line between the faltering banks and the 2018 bill. The progressive pair, along with dozens of other Democrats, introduced a bill on Tuesday that would repeal the 2018 Dodd-Frank rollback by restoring the regulation threshold to $50 billion.<\/p>\n<p>The legislation comes after Biden this week called on Congress and banking regulators \u201cto strengthen the rules for banks to make it less likely that this kind of bank failure will happen again and to protect American jobs and small businesses.\u201d<\/p>\n<p>Stabenow said she has concerns with the threshold under the Warren-Porter bill.<\/p>\n<p>\u201cMy reason to support the bill originally was because I felt the $50 billion threshold was too low. And so she moves it all the way back down to that. And so that\u2019s the question of mine,\u201d she said.<\/p>\n<p>\u201cAnd I think we need to look at, you know, what really happened here? I mean, there\u2019s total incompetence of this bank, certainly. And the question is what would make a difference? That\u2019s what I\u2019m interested in,\u201d she added, later saying \u201cI think it\u2019s just looking at, you know, what can we do to address this situation without going back to hurting small banks.\u201d<\/p>\n<p>Coons said it was \u201cpremature\u201d to consider \u201cspecific solutions\u201d when the cause of the bank failure remains unknown, and Kaine said he first wants to review Barr\u2019s analysis before making a decision on Warren\u2019s bill.<\/p>\n<p>But if Barr says the repeal of the rollback would be a good thing to do, Kaine said he would \u201cbe favorably inclined.\u201d<\/p>\n<p>One proponent of Warren\u2019s bill could be Rep. Andr\u00e9 Carson (D-Ind.), who supported the 2018 rollback. Asked about his vote, the congressman told The Hill in a statement that, in light of the bank closures, it is time to move standards back in the direction of Dodd-Frank.<\/p>\n<p>\u201cIn light of recent events, I believe it\u2019s time to review and update those changes to bring the requirements closer in line to our original Dodd-Frank standards, which I was proud to vote to establish,\u201d he told The Hill. \u201cThis will help strengthen our financial system to keep it resilient and reliable as economic tides ebb and flow.\u201d<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/business\/banking-financial-institutions\/3905108-democrats-defend-deregulation-vote-amid-banking-blame-game\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Democrats defend deregulation vote amid banking blame game Democrats on Capitol Hill are defending their vote for a 2018 banking deregulation bill that President Biden and other members of the party are blaming for last week\u2019s stunning collapse of Silicon Valley Bank and Signature Bank. Forty-nine Democrats \u2014 33 in the House and 16 in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":566439,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/stabenowdebbie_030123gn01_W.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[141545,141239,51421,30889,134418,134353,138053,4941,77105,136926,141546,112997,71525,115,70289,134446,96428],"class_list":["post-566438","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-angus-king","tag-banking-financial-institutions","tag-bernie-sanders","tag-biden","tag-congress-blog","tag-court-battles","tag-debbie-stabenow","tag-donald-trump","tag-elizabeth-warren","tag-gary-peters","tag-josh-gottheimer","tag-kyrsten-sinema","tag-national-security","tag-news","tag-senate","tag-sunday-talk-shows","tag-tim-kaine"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/566438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=566438"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/566438\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/566439"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=566438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=566438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=566438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}