WASHINGTON—As federal regulators sift through the remains of Silicon Valley Bank, whose collapse last week recalled the 2008 liquidity crisis and sent shudders through the fragile post-pandemic economy, elected officials in Washington and elsewhere used the regional lender's demise to deploy their arguments for what went wrong.
,"repeal the disastrous 2018 bank deregulation law, break up too big to fail banks, and address the needs of working families, not the risky bets of vulture capitalists."a similar argument in a New York Times op-ed
, urging"Congress, the White House and banking regulators" to"reverse the dangerous bank deregulation of the Trump era." Congress is unlikely to act, given the sharp partisan divisions in both chambers. As for the White House, Biden said on Monday morning that all SVB deposits would be covered by a banking industry fund .
“No losses will be borne by the taxpayers,” the president said in his remarks. And the bank’s management, he added, would be fired. Biden was vice president in 2009, when then-President Barack Obama and his treasury secretary, Timothy Geithner, pulled the American financial system back from imminent collapse. But many progressives called for sweeping reforms such asFor now, at least, such calls have been muted, with little sense thus far that a systemic crisis requiring large-scale fixes is in the works.
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