White House Tees Up Talk Of Further Bank Regulation ‘In the Next Few Days’
Administration reacts to recent bank woes
The Biden administration plans to weigh in on future banking regulations “in the next few days,” as it — and others — deal with the failures and other troubles at several banks in recent days.
The administration is dealing to shore up confidence in the banking system after the failure of Silicon Valley Bank (SVB), which collapsed last week, and Signature Bank, which regulators shut down.
Further, the health of international lender Credit Suisse has further roiled the financial waters.
Biden and his team have acted to shore up the banking system. They used the Deposit Insurance Fund, a $100 billion cache funded by premiums banks pay to the Federal Deposit Insurance Corporation (FDIC), to guarantee deposits at SVB while the president gave an unusual morning address from the White House to calm jittery bank consumers.
White House press secretary Karine Jean-Pierre addressed the ongoing issues Thursday during the regular briefing.
“So, again, I’m not going to get ahead or get into hypotheticals on what the future is going to hold. And I said this moments ago as well, which is: ‘Look, we need Congress to act, and we need Congress to take a look of what else can be done,’” she said. “That’s why we’re supporting the legislation — the bipartisan legislation — that I just mentioned.”
Changes in regulation could include increasing the cap on federally insured deposits above the current $250,000.
“Look, the president — as I mentioned also earlier, the president appointed — regulators over the past two years to reverse the changes that we saw in the last administration,” Jean-Pierre said, referring to the obsessively deregulation-minded Trump administration. “But, again, Congress needs to act. As far as the $250,000 deposit insurance limit, we have more to say on the specific regulatory changes in the next few days. I’m not going to get ahead of what the regulators are going to decide moving forward.”
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