A Banking Collapse and a Call for Oversight

The weekend collapse of two banks has advocates calling for reform, additional oversight

Andy Spears
2 min readMar 14


Photo by David Pupaza on Unsplash

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.”

Americans for Financial Reform made the following recommendations in the wake of the bank collapses:

“Congress should repeal the 2018 legislation and take up additional measures to protect financial stability and the public interest. But regulators should not wait; they can take steps now to make the system more stable while protecting consumers and investors. They should strengthen bank capital and liquidity rules and make use of the Financial Stability Oversight Council and the Office of Financial Research to identify emerging risks, designate firms as systemically important, and properly regulate both banks and non-banks. They should also implement the Dodd-Frank mandate to limit executive compensation.”

This recent collapse of two large banks also points to the need for additional banking reform.

Some encouraging news on this front came when TAB Bank was downgraded due to its partnership with predatory lender EasyPay.

Here are some more examples of banking industry practices that warrant more scrutiny:

Surprise! An Overdraft Fee

Wells Fargo Fined for Defrauding Customers



Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .