Biden blames banking collapse on Trump, regulations

"Unfortunately, the last administration rolled back some of these requirements," Biden said.

Joshua Young Youngsville North Carolina

On Monday, Joe Biden claimed during a speech that the recent collapse of both Silicon Valley Bank and Signature Bank was due in part to the Trump administration rolling back parts of the Dodd-Frank Act of 2010.

"During the Obama-Biden administration, we put in place tough requirements on banks, like Silicon Valley Bank and Signature Bank including the Dodd-Frank law to make sure that the crisis we saw in 2008 would not happen again," Biden said. "Unfortunately, the last administration rolled back some of these requirements."

According to the Hill, Trump signed a bipartisan bill in 2018 that loosened some of the restrictions put forward in the Dodd-Frank Act of 2010. The bill was the work of several years of negotiations between GOP and Democrats senators. 

The bill Trump signed was introduced by GOP Senate Banking Committee Chairman Mike Crapo and Democrats Heidi Heitkamp, Jon Tester, Joe Donnelly, and Mark Warner.

On Sunday, regulators in the Federal Deposit Insurance Corporation (FDIC) shut down Signature Bank, based out of New York City, after they shut down Silicon Valley Bank on Friday.

The FDIC, Treasury Department, and Federal Reserve jointly released a statement that said, "We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole."  

"As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer," the statement added, which Biden reiterated in his statement.

"I'm going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely this kind of bank failure would happen again, and protect American jobs in small businesses," Biden said before concluding his statements.

Biden then exited without taking any questions.


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