President Joe Biden has urged regulators to tighten rules for midsize banks with $100 billion to $250 billion of assets.
Photo Insert: The president's move comes after the collapse of Silicon Valley Bank and Signature Bank in early March sparked fears about the system.
The move comes after the collapse of Silicon Valley Bank and Signature Bank in early March sparked fears about the system, Karishma Vanjani and Janet H. Cho reported for Barron’s Daily.
The White House issued recommendations that include enhancing liquidity and testing requirements and the making of comprehensive “living wills,” which was a requirement removed under bank reforms under Trump.
Treasury Secretary Janet Yellen also called for tighter regulations, telling a meeting of the National Association for Business Economics that regulators need to consider whether deregulation may have gone too far and to fix the cracks that the recent shocks have revealed.
The 25 largest US banks gained $120 billion in deposits in the days after SVB collapsed, while panicked customers pulled $108 billion from all the banks below that level, in the largest weekly decline in smaller banks’ deposits by dollars, The Wall Street Journal reported, citing Federal Reserve data.