The failure of Silicon Valley Bank has been attributed by Sen. Bernie Sanders to a banking law from the Trump administration.
Sanders was alluding to the Economic Growth, Regulatory Relief, and Consumer Protection Act, which was enacted in May 2018 by then-President Donald Trump.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was perceived as significantly being rolled back by the measure.
Trump made a statement about the prior banking reforms during the bill signing, saying “They were in so much difficulty. One size fits all — those guidelines simply don’t apply, “based on The Washington Post.
The Dodd-Frank restrictions, according to Trump at the time, were killing community banks and credit unions everywhere.
Trump loosened standards that major banks had to follow and exempted smaller banks from strict requirements by signing the bill into law. The act upped the asset threshold for systematically important financial institutions from $50 billion to $250 billion.
With $209 billion in assets at the end of 2022, Silicon Valley Bank was no longer considered to be a systematically important financial institution. As a result, it was exempt from the stricter rules that govern larger banks.
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Bernie Sanders Claims Trump Disregarded Lessons from 2008
In a statement released on Sunday, Sanders said that the Trump administration had failed to take into account all the lessons that should have been learned from the Enron debacle and the 2008 Wall Street meltdown.
Sanders continued by saying that the US could not go down the path of further socialism for the wealthy and uncompromising individualism for everyone else. Without providing any evidence, Trump has asserted that the economy should be held responsible for the Silicon Valley Bank run.
The collapse of SVB, the CCP spy balloons, the train derailing in East Palestine, and other desperate lies have all been used by out-of-control Democrats and the Biden administration to pitifully try to pin President Trump for their failings, according to a Trump spokesman who talked to Insider.
After a disastrous bank run, the Federal Deposit Insurance Corporation closed the Silicon Valley Bank on Friday. The largest bank failure in the US since the 2008 financial crisis is now the collapse of Silicon Valley Bank.
Up to $250,000 per depositor, per institution, and per ownership category is insured by the FDIC for deposits. Startups with funds at Silicon Valley Bank beyond $250,000, however, run the risk of not being able to pay their employees next week.
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