How Deregulation Made the SVB Collapse More Likely
The sudden collapse of Silicon Valley Bank—the second largest bank failure in US history—sent shock waves around the world this past week.
But the risk of such a crash has been clear since 2018, as Roosevelt fellow Todd Phillips writes for the blog.
“[D]ue to the rollback of several key Dodd-Frank provisions and an emphasis by lawmakers in 2018 that midsize banks receive lighter oversight than large banks, regulators did not supervise these banks sufficiently,” Phillips explains.
“SVB was one of the institutions that saw its regulations and oversight weakened.”
Read more from Phillips about the role deregulation played in SVB’s collapse, and what the Federal Reserve and Congress can do now.
And for more on the SVB crisis, check out this MSNBC piece by Roosevelt’s Mike Konczal.
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