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Elizabeth Warren

Regulation and Compliance > Legislation

New Bill Repeals Trump-Era Dodd-Frank Rollback

By Melanie Waddell

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Sen. Elizabeth Warren, D-Mass., and Rep. Katie Porter, D-Calif., introduced late Tuesday the Secure Viable Banking Act, legislation that would repeal Dodd-Frank rollbacks included in the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018.

The release follows the collapse of Silicon Valley Bank (SVB) and Signature Bank.

Title IV of the Economic Growth, Regulatory Relief, and Consumer Protection Act, S. 2155, raised the asset threshold at which a bank is considered and regulated as a “systemically important financial institution” to $250 billion, exempting SVB and other midsize banks from regular stress testing and enhanced liquidity, risk management and resolution plan, or ‘living will’” requirements, the lawmakers state.

The new bill would repeal these “dangerous regulatory rollbacks, which invited banks to load up on risk and increase profits, restoring critical Dodd-Frank protections,” Warren and dozens of other Democrats said.

Dodd-Frank applied these regulations to banks with at least $50 billion; midsize banks argued the requirements were too onerous. The 2018 rollback passed with bipartisan support.

“In 2018, I rang the alarm bell about what would happen if Congress rolled back critical Dodd-Frank protections: banks would load up on risk to boost their profits and collapse, threatening our entire economy — and that is precisely what happened,” Warren said in a statement. “President Biden called on Congress to strengthen the rules for banks, and I’m proposing legislation to do just that by repealing the core of Trump’s bank law.”

Porter added in the statement that “Americans deserve to know their money is safe when they deposit it in the bank. In 2018, politicians rolled back critical regulations protecting Americans’ deposits — ignoring warnings from financial experts in favor of Wall Street special interests. I’m calling on Congress to restore common-sense guardrails that keep corporate greed in check and restore confidence in our financial system.”

Melanie Waddell

@Think_MelanieW

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