Nadler Statement on Biden and Regulator Response to Recent Bank Failures
New York, NY, March 14, 2023
Today, Representative Jerrold Nadler (NY-12) released the following statement regarding the Biden Administration and Government Regulator's response to the collapse of Silicon Valley Bank and others:
"I applaud President Biden and government regulators for moving quickly to protect consumers and ensure Americans maintain confidence in our banking system.
In 2018, around the 10th anniversary of one of the worst financial crises of our nation's history, former President Donald Trump signed legislation to weaken the landmark Dodd-Frank reforms created in the aftermath of the 2008 financial crisis. That legislation, which I proudly voted against, gutted consumer protections and deregulated several of our nation's largest banks.
The recent bank failures are largely a result of this deregulation, and Congress should move quickly to repeal President Trump's failed legislation to strengthen financial guardrails.
The bank failures also highlight the consequences of the Federal Reserve raising interest rates sharply and allowing financial institutions to load up on risky investments. With corporate profit margins at a 70-year high, food prices up, and wages down, it's clear that raising interest rates sharply places much of the burden of inflation on working families. Now is the time for our government to stand up to Wall Street and corporate greed. The Federal Reserve should stop raising interest rates.”