Carborendum Posted March 13 Report Share Posted March 13 Many of you have heard of the recent bank failures. Biden has now blamed it on Trump. Let's take a closer look at that. The bill that was passed under Obama was the Dodd-Frank Act. It placed more restrictions on how banks can invest. And it provided many more channels of oversight by creating more government departments. The Trump-era legislation was the Economic Growth, Regulatory Relief and Consumer Protection Act. It changed some limits on how big a bank had to be subject to some provisions of the Dodd-Frank Act. Points to consider: Dodd-Frank's biggest effect was to enshrine "Too Big to Fail" into law. EGRRCPA was sponsored with bipartisan support. An equal number of senators on both sides of the aisle. It passed with 17 Senate Democrats voting with the Republicans. The CEO of SVB was the one most interested in lobbying to pass the rollback bill. This was because SVB was "just" on the borderline" of the threshold for where Dodd-Frank would hamper SVB investments.While some Democrats were adamantly against the "roll-back", most of the Democrats only disagreed with the degree (how low/high were the limits). So, if the bill were re-written to the levels that most Democrats agreed with, SVB would still have been under the threshold. At the time of failure, they were below the threshold anyway. So, they were not considered "Too Big to Fail." Godless 1 Quote Link to comment Share on other sites More sharing options...
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