SVB ain't no small bank!-----First Thing We Do, Let’s Blame ‘Deregulation’

First Thing We Do, Let’s Blame ‘Deregulation’ - I & I Editorial Board

"Whenever a disaster strikes, you can bet that a story will soon appear blaming “deregulation.” 

Sen. Elizabeth Warren, in an op-ed published in Monday’s New York Times, said that a bill Trump signed in 2018 that tweaked some banking rules was responsible for SVB’s failure...
Let’s rewind the clock here.
That 2018 “deregulation” Warren and others are now citing as the culprit was bipartisan legislation to address a serious flaw in the Dodd-Frank bill – the massive new regulatory regime Democrats imposed after the 2008 financial crisis.

• That flaw was the fact that Dodd-Frank’s cumbersome and heavy-handed rules and regulations were choking small and community banks to death, 
• leading to even greater consolidation of the banking industry, 
• thereby exacerbating the very risk it was trying to solve, 
• while also suffocating economic growth by making it harder for businesses to get access to financing...