Gallego Introduces Legislation to Restore 2018 Banking Regulations
WASHINGTON, DC – Rep. Ruben Gallego (AZ-03), along with Rep. Katie Porter, Sen. Elizabeth Warren, and 50 other members of Congress, today introduced the Secure Viable Banking Act to restore banking regulations rolled back by then-President Trump in 2018. The 2018 law, the Economic Growth, Regulatory Relief, and Consumer Protection Act, repealed portions of the Dodd-Frank financial regulations that helped cause the collapse of Silicon Valley Bank.
“In 2018 I stood up against the the big banks and voted against deregulation. Now, some of the same people on Wall Street during the Great Recession have done it again,” said Rep. Gallego. “I knew then it was a bad idea for banks to regulate themselves, and now, unfortunately, we’re witnessing what happens when they do. President Biden called on Congress to protect Arizonans by improving oversight of the banking industry, and this legislation will do just that.”
The bill repeals Title IV of the?Economic Growth, Regulatory Relief, and Consumer Protection Act, which raised the asset threshold at which a bank is considered and regulated as a “systemically important financial institution” to $250 billion. This meant Silicon Valley Bank and other similarly-sized institutions were exempt from regular stress tests and liquidity requirements. This legislation restores Dodd-Frank, improving oversight on large, regional banks to prevent a similar situation like the mismanagement at Silicon Valley Bank from happening again.