A Banking Collapse and a Call for Oversight
The weekend collapse of two banks has advocates calling for reform, additional oversight
When the Trump Administration rolled back some key elements of Dodd-Frank back in 2018, consumer advocates warned the move could mean trouble.
Five years later, we saw the collapse of two banks over a weekend — and the predictions of problems came true.
Fortunately, the financial system has been shored up for now thanks to government intervention.
The next question: What oversight and regulation is needed to keep this from happening again?
Advocates are calling for some clear and swift action to protection consumers.
More from NewsBreak:
“Rolling back common-sense safeguards to ensure banks were liquid enough to pay their depositors was clearly the wrong decision,” said Renita Marcellin, the advocacy and legislative director at Americans for Financial Reform. “These banks would have faced a tougher risk management framework under the original Dodd-Frank law. But bipartisan majorities in Congress weakened the law in 2018 and Trump-appointed regulators took it even further.”
