(RepublicanDaily.org) – A bank law passed during the Trump administration is now coming back to the spotlight, following the collapses of Silicon Valley Bank and Signature bank. While previously the leader of the push against the Trump-era banking law, Democratic Senator Elizabeth Warren now calls on Congress and the Biden administration to restore those laws, NBC reported. At the time that the law passed, Warren was hotly critical, claiming that, while banks were making record-breaking profits, Washington insisted on giving them “a handout,” NBC reported.
In 2018, a law was passed to roll back regulations on banks caused by the Dodd-Frank act of 2010. At the time, Donald Trump, who expressed deeply resentful sentiments toward the act, signed the bill to roll back the restrictions. Those in favor of the rollback claimed that the bill would give provisions to certain small banks to lend and compete more easily.
The subsequent failures of both Silicon Valley Bank and Signature bank have brought new scrutiny to the rollback of the 2018 era law that Trump signed, which rolled back Dodd-Frank regulations. The rollback now resurfaces, as the U.S. government rushes to secure the struggling bank system. Both Silicon Valley Bank and Signature bank “rapidly collapsed” on March 10, leading the Federal Deposit Insurance Corporation to seize control of both banks’ assets, The New York Times reported.
However, despite Warren’s call to revisit the Trump-era policy, Democrats criticized the rollback, claiming that the relaxation of the Dodd-Frank regulations may have “contributed” to the situation. Some banking experts had cited the Trump regulation reversal as “contributing’ to the situation, The New York Times reported.
Democratic Senator Bernie Sanders was critical of the 2018-era law saying that the bank’s failure was a “direct result” of the Trump-era regulation, which, in his view, was “absurd” and one that he had “strongly opposed” at the time, Business Insider reported.
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