SVB collapse creates rift among Democrats over 2018 banking law

[News Junkie]

Congress has just begun sifting through the remains of Silicon Valley Bank for lessons, but liberal figures from Sen. Elizabeth Warren (D-MA) to Rep. Maxine Waters (D-CA) say the main boogeyman is crystal clear: a recent law that loosened regulations on some mid-sized banks.

But they’ll need to convince a sizable number of their Democratic colleagues who voted for that law before starting in on the Republican side of the aisle.

In statement after statement, liberal Democrats unequivocally lay the current mess at the feet of that 2018 law, but they often overlook that 17 Democrats in the Senate and 33 in the House went along with effort, which was eventually signed into law by then-President Trump.

And in recent days, these moderate Democrats are pushing back against the notion that the bill — called the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 — needs to be reversed or tweaked.

https://www.yahoo.com/news/svb-collapse-creates-rift-among-democrats-over-2018-banking-law-205304678.html

[walkingman]

1. It'd pretty obvious to me that had the 2018 law not been repealed

Last edited Wed Mar 22, 2023, 07:06 AM - Edit history (1)

the SVB banking crisis would not have occured. And sadly one of the Dems that agreed with the repeal was of all people Barney Frank, who is the Frank in the Dodd-Frank bill. Just goes to show you the effect that the deep pockets of the banking lobby have.

These anti-regulation Democrats are who are persuaded by influencers (lobbyists) in my opinion are DINOs. An easy example is Manchin but he is not alone.

I realize it is not a perfect world but the SVB banking crisis is pushing people to move their $$$ from smaller banks to the "too big to fail" ones that still fall under the Dodd-Frank law (greater than 250B). This means that next time it happens and it will more than likely happen again then we will have no choice but to bail them out.

This whole deregulation scheme of the last 50 years has been one of the real reasons we live in this corporate owned congress. Environment, Pharma, Media, Farming are all larger and larger - bad for America.

Not dissing Democrats but facts is facts. ☮

[Fiendish Thingy]

2. As well it should

There’s a few dozen Dems who should be taken out behind the woodshed by Schumer and Jefferies.

If this gets any worse, I expect there will be numerous Dem incumbents facing primary challenges.

[tirebiter]

3. Move on for krissake

Write, “I will not undercut bank regulation!” 100 times on the chalkboard, say your sorry and won’t do it again.

[Celerity]

4. The 17 Dems in the Senate, and the 33 in the House who voted to partially gut Dodd Frank

Complete list of the 17 Dem Caucus Senators who voted to partially gut Dodd-Frank

https://www.senate.gov/legislative/LIS/roll_call_votes/vote1152/vote_115_2_00054.htm#top

Bennet (D-CO)

Carper (D-DE)

Coons (D-DE)

Donnelly (D-IN)

Hassan (D-NH)

Heitkamp (D-ND)

Jones (D-AL)

Kaine (D-VA)

King (I-ME)

Manchin (D-WV)

McCaskill (D-MO)

Nelson (D-FL)

Peters (D-MI)

Shaheen (D-NH)

Stabenow (D-MI)

Tester (D-MT)

Warner (D-VA)

Complete list of the 33 Democratic Caucus House Members who voted to partially gut Dodd-Frank

https://clerk.house.gov/Votes/2018216

Bera Democratic California YEA
Bishop Democratic Georgia YEA
Blunt Rochester Democratic Delaware YEA
Carson Democratic Indiana YEA
Correa Democratic California YEA
Costa Democratic California YEA
Cuellar Democratic Texas YEA
Davis, Danny Democratic Illinois YEA
Delaney Democratic Maryland YEA
Foster Democratic Illinois YEA
Gonzalez Democratic Texas YEA
Gottheimer Democratic New Jersey YEA
Hastings Democratic Florida YEA
Himes Democratic Connecticut YEA
Kind Democratic Wisconsin YEA
Kuster Democratic New Hampshire YEA
Larsen Democratic Washington YEA
Lawson Democratic Florida YEA
Maloney, Sean Democratic New York YEA
Murphy Democratic Florida YEA
Nolan Democratic Minnesota YEA
O'Halleran Democratic Arizona YEA
Peters Democratic California YEA
Peterson Democratic Minnesota YEA
Rice Democratic New York YEA
Schneider Democratic Illinois YEA
Schrader Democratic Oregon YEA
Scott, David Democratic Georgia YEA
Sewell Democratic Alabama YEA
Sinema Democratic Arizona YEA
Suozzi Democratic New York YEA
Veasey Democratic Texas YEA
Vela Democratic Texas YEA

"It's a bad bill under the guise of helping community banks," Representative Nancy Pelosi of California, the Democratic minority leader, said during debate on the House floor on Tuesday. “The bill would take us back to the days when unchecked recklessness on Wall Street ignited an historic financial meltdown.”

https://www.nytimes.com/2018/05/22/business/congress-passes-dodd-frank-rollback-for-smaller-banks.html

and


Signature Bank went bust March 12, 2023:

State regulators closed New York-based Signature Bank (SBNY.O) on Sunday, the third largest failure in U.S. banking history, two days after authorities shuttered Silicon Valley Bank (SIVB.O) in a collapse that stranded billions in deposits.

https://www.reuters.com/business/finance/new-york-state-regulators-close-signature-bank-2023-03-12/

well........................

A lot of people heard what Barney Frank said about the new banking law. Few knew he works for a bank

https://www.washingtonpost.com/news/wonk/wp/2018/05/24/a-lot-of-people-heard-what-barney-frank-said-about-the-new-banking-law-few-knew-he-works-for-a-bank/

https://archive.is/mG1Vh

May 24, 2018 at 4:50 p.m. EDT

As Senate Democrats successfully pushed into law a plan that rolls back post-financial-crisis banking rules, Barney Frank was a go-to figure. Frank, a former House Democrat from Massachusetts and author the 2010 “Dodd-Frank” banking rules that the new law scales back, said the plan left his rules largely in place. And though he said he would vote against the measure, Frank said it would not help the biggest Wall Street banks and denied it would increase the risks of another financial crisis.

Some Democrats leaned heavily on those words as they pushed back against the plan's liberal critics. “I think it’s really important that we debate the actual merits of this bill and not the boogeyman merits: the statements that this bill will somehow lead to the catastrophic downfall of our financial system,” Sen. Heidi Heitkamp (D-N.D.) said in a speech on the Senate floor. “Even Barney Frank disagrees with that evaluation of this bill.”

Link to tweet

But the proponents of the law rarely, if ever, mentioned that Frank is not just the author of the 2010 law, but also sits on the board of New York-based Signature Bank, a financial firm in position to benefit from the new legislation. “When citing Barney Frank as the historic creator of Dodd-Frank, it’s important to flag he may have different motivations now as the public gauges whether these rollbacks are good for them or good for Wall Street,” said Lisa Gilbert, vice president of legislative affairs at Public Citizen, a government ethics watchdog. The rollback passed the Senate in March and the House earlier this week, and President Trump signed it into law Thursday.

Dodd-Frank imposed additional regulatory safeguards on banks with more than $50 billion in assets, but the rollback that passed this week, among other things, raises that threshold to $250 billion. Signature Bank has more than $40 billion in assets and can now grow significantly without automatically facing additional regulation. Frank has served on Signature's board for three years and has received more than $1 million in payments from the bank during that time.

snip

one week later, June 1, 2018:

Koch political network supports Heitkamp for bank deregulation

Billionaire Koch brothers’ network launches digital ad blitz thanking Democrat Heidi Heitkamp as midterms near

https://www.cnbc.com/2018/06/01/koch-political-network-supports-heitkamp-for-bank-deregulation-bill.html

PUBLISHED FRI, JUN 1 2018 10:01 AM EDT

North Dakota Democratic Sen. Heidi Heitkamp will be going into the congressional midterm elections knowing she’s received support for at least one piece of legislation by the unlikeliest of groups: the Koch political network.

Americans for Prosperity, an arm of the influential network supported by conservative billionaire industrialists Charles and David Koch, is unleashing a digital advertising campaign on Friday thanking Heitkamp for co-sponsoring the Economic Growth, Regulatory Relief and Consumer Protect Act, a bill that rolls back Dodd-Frank regulations mainly on community banks, or those with less than $100 billion in assets. It recently passed in Congress with bipartisan support.

“Congress achieved a significant milestone in lifting some of the toughest restrictions Dodd-Frank placed on small banks and their consumers. This was a bipartisan effort made possible by lawmakers like Heidi Heitkamp who put politics aside to work together,” Tim Phillips, president for Americans for Prosperity, said in a statement.

“While we don’t agree with Sen. Heitkamp on everything, particularly her vote against tax relief, we commend her for taking a stand against the leaders of her party to do the right thing. We hope to find common ground and work with Sen. Heitkamp on other issues moving forward including making tax relief permanent,” he added.

snip

[MichMan]

5. Why wasn't anything done about it since then to put it back where it was ?