Current:Home > NewsBiden asks banking regulators to toughen some rules after recent bank failures-DB Wealth Institute B2 Expert Reviews
Biden asks banking regulators to toughen some rules after recent bank failures
View Date:2024-12-23 22:38:56
President Biden on Thursday urged banking regulators to take additional steps to reduce the risk of more mid-sized bank failures like Silicon Valley Bank and Signature Bank.
"We think things have stabilized significantly," a White House official told reporters on a conference call. "We also think it's important that regulators take steps to make sure future banking crises don't happen."
The White House blames the Trump administration for weakening regulatory requirements for mid-sized and regional banks. Part of that came through a 2018 law that eased some of the Dodd-Frank rules for banks — a roll-back that was supported by some Democratic senators.
Thursday's announcement side stepped that issue, focusing only on things the White House said could be done by regulators under existing laws without needing Congress to take any action. In the Trump administration, regulators themselves eased back on supervision, the official said. "The tone and the focus and the aggressiveness of supervision was being quite clearly set from the top," the official said.
Regulators are currently doing their own review of what steps are needed to prevent future bank failures like the ones seen earlier this month. Banking regulators are independent, and ultimately the actions and the timeline for any changes would be up to regulators, the White House said. "A lot of these regulators were nominated by this president in part because they share his view of the type of banking regulation that we want to see, so we're hopeful that they will take these steps," the White House official told reporters.
The steps include:
- Boosting liquidity requirements for banks with assets between $100 billion and $250 billion, and stress-testing banks of that size to ensure they can withstand bank run scares
- Increasing capital stress tests to once per year instead of once every two years
- Ensuring those stress tests begin shortly after banks first reach $100 billion in assets, rather than waiting for a few years
- Reinstate requirements for mid-sized banks to have "living wills" describing plans for how they could be wound down, if needed, to avoid stressing other parts of the banking system
- Stronger capital requirements for regional banks, after a transition period
veryGood! (4)
Related
- Elton John Details Strict Diet in His 70s
- What restaurants are open New Year's Eve 2023? Details on Starbucks, Chick-fil-A, more
- Israeli strikes in central Gaza kill at least 35 as Netanyahu says war will continue for months
- Indianapolis Colts TE Drew Ogletree faces domestic violence charges
- Investigators believe Wisconsin kayaker faked his own death before fleeing to eastern Europe
- Denmark’s Queen Margrethe II to step down from throne on Jan. 14
- 'Our expectations fell very short': Dolphins in tough spot as division crown hangs in balance
- Kirk Cousins leads 'Skol' chant before Minnesota Vikings' game vs. Green Bay Packers
- Brittany Cartwright Defends Hooking Up With Jax Taylor's Friend Amid Their Divorce
- China’s manufacturing activity slows in December in latest sign the economy is still struggling
Ranking
- Why Outer Banks Fans Think Costars Rudy Pankow and Madison Bailey Used Stunt Doubles Amid Rumored Rift
- Carolina Panthers owner David Tepper appears to throw drink at Jacksonville Jaguars fans
- Colorado mother suspected of killing her 2 children and wounding a third arrested in United Kingdom
- 2024 Winter Classic: Live stream, time, weather, how to watch Golden Knights at Kraken
- Former Disney Star Skai Jackson Is Pregnant, Expecting First Baby With Her Boyfriend
- Unforgettable global photos of 2023: Drone pix, a disappearing island, happiness
- Judge allows new court in Mississippi’s majority-Black capital, rejecting NAACP request to stop it
- Ole Miss staffer posted fake Penn State player quote from fake account before Peach Bowl
Recommendation
-
Businesses at struggling corner where George Floyd was killed sue Minneapolis
-
Kirk Cousins leads 'Skol' chant before Minnesota Vikings' game vs. Green Bay Packers
-
Puppies, purebreds among the growing list of adoptable animals filling US shelters
-
What's open on New Year's Eve? Stores, restaurants and fast food places ringing in 2024 with open doors.
-
Watch as massive amount of crabs scamper across Australian island: 'It's quite weird'
-
Watch this family reunite with their service dog who went missing right before Christmas
-
On New Year’s Eve, DeSantis urges crowd to defy odds and help him ‘win the Iowa caucuses’
-
XFL-USFL merger complete with launch of new United Football League