Failure of bank last weak sparked fears of financial crisis, as US government announces plans to stabilize situationSign up to receive First Thing – our daily briefing by emailDemocratic senator Elizabeth Warren is one of Wall Street’s biggest antagonists in Congress, and she is not pleased by the collapse of Silicon Valley Bank.“No one should be mistaken about what unfolded over the past few days in the US banking system: These recent bank failures are the direct result of leaders in Washington weakening the financial rules,” she wrote in a New York Times column published today.First, Congress, the White House and banking regulators should reverse the dangerous bank deregulation of the Trump era. Repealing the 2018 legislation that weakened the rules for banks like SVB must be an immediate priority for Congress. Similarly, Mr Powell’s disastrous “tailoring” of these rules has put our economy at risk, and it needs to end – now. Bank regulators must also take a careful look under the hood at our financial institutions to see where other dangers may be lurking. Elected officials, including the Senate Republicans who, just days before SVB’s collapse, pressed Mr Powell to stave off higher capital standards, must now demand stronger – not weaker – oversight. Continue reading...
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