President Joe Biden blamed his predecessor Donald Trump for the recent failures of two major banks, Silicon Valley Bank and Signature Bank, and vowed to restore the Dodd-Frank Law that was enacted after the 2008 financial crisis.
In a tweet on Monday, Biden said that the Obama-Biden administration had put in place tough requirements on banks like Silicon Valley Bank and Signature Bank, including the Dodd-Frank Law, to prevent another crisis. He said that the Trump administration had rolled back some of these requirements, putting the system at risk.
During the Obama-Biden administration, we put tough requirements on banks like Silicon Valley Bank and Signature Bank—including the Dodd-Frank Law to make sure the crisis we saw in 2008 would not happen again.
The last administration rolled back some of these requirements.
— Joe Biden (@JoeBiden) March 14, 2023
“During the Obama-Biden administration, we put tough requirements on banks like Silicon Valley Bank and Signature Bank—including the Dodd-Frank Law to make sure the crisis we saw in 2008 would not happen again. The last administration rolled back some of these requirements,” Biden tweeted.
Biden’s tweet came after Silicon Valley Bank, the third-largest bank in the U.S., collapsed on Sunday, following the failure of Signature Bank, the second-largest bank, on Friday. The two banks had been exposed to massive losses from risky loans and investments, triggering a panic among depositors and investors.
The Federal Deposit Insurance Corporation (FDIC) took over both banks and assured customers that their deposits were safe and insured. The Federal Reserve also stepped in to provide liquidity and stability to the financial system.
Biden addressed the nation on Monday morning and tried to calm the markets and the public. He said that his administration was working closely with the regulators and the Congress to investigate what caused the bank failures and to hold those responsible accountable.
He also said that he would fight to strengthen the rules for banks and to restore the Dodd-Frank Law, which was passed in 2010 to impose stricter regulations on financial institutions and protect consumers from abusive practices.
“We must reduce the risk of this happening again,” Biden said. “The Dodd-Frank Law was designed to prevent another financial meltdown and to protect consumers from predatory lending, excessive fees, and unfair practices. It also created the Consumer Financial Protection Bureau, which has returned billions of dollars to Americans who were cheated by financial companies.”
Biden said that he would work with Congress to pass legislation that would restore the Dodd-Frank Law and undo the damage done by the Trump administration.
“We cannot let Wall Street gamble with our economy and our future,” Biden said. “We need a banking system that works for everyone, not just for a few.”