Dodd Frank Was Never Gutted – It Was Barely Touched

Norbert Michel andNicholas AnthonyIn March 2018, theNew York Timesran an op ‐​ed about the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Economic Growth Act). The piece claimed the bill “would roll back or eliminate parts of the Dodd‐​Frank Act.”Fast forward to March 2023, when theTimesran an op ‐​ed by Senator Elizabeth Warren (D‑MA) about the Silicon Valley Bank failure. In it, Warren points to the Economic Growth Act andargues the demise of Silicon Valley Bank was “the direct result of leaders in Washington weakening the financial rules.”Though separated by five years, both opinion pieces widely miss the mark on the Economic Growth Act.First, while the Economic Growth Act did amend the Dodd ‐​Frank Act, it didn’t eliminate a single title or section of Dodd ‐​Frank. More importantly, the Economic Growth Actamended the Federal Reserve ’s “enhanced supervision and prudential standards for certainbank holding companies. ” (Emphasis added.) That is, the Economic Growth Act amended how the Fed can regulate the companies thatown commercial banks, not how it can regulate the commercial banks themselves.There ’s a huge difference. Right now, several large firms are in talks to buySVB Financial Group, the holding company that owned several financial companies, includingSilicon Valley Bank. Although Silicon Valley Bank is now under control of the FDIC,SVB Financial Group is a separate entity.That said, even...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs