Biden calls for tougher bank rules, but omits calls for legislation
President Joe Biden Thursday called on banking regulators to use their existing authority to toughen capital and liquidity rules for midsized banks, saying that the Trump-era regulatory revisions called for by S. 2155 contributed to the failures of Silicon Valley Bank and Signature Bank.
WASHINGTON President Joe Biden asked regulators to reinstate rules that would give tougher oversight to banks between $100 billion and $250 billion in assets, a range that would have included Silicon Valley Bank and Signature Bank.
In the aftermath of the two bank failures and the panic that ensued after regulators declared a systemic risk exception, policymakers have tried to figure out to what degree bank regulation should be shifted to account for the problems that precipitated the collapse.
The Biden administration is apparently prioritizing a rollback of rules enacted by regulators appointed by former president Trump. In a fact sheet released by the White House, Biden claimed that the Dodd-Frank Act rules would have put Silicon Valley Bank under more scrutiny.