Silicon Valley Bank has collapsed, and it was completely avoidable. In 2018, Donald Trump and the Republican Congress—at the behest of the banking industry—rolled back key parts of the Dodd-Frank law that protected consumers. The legislation passed the House 258-159 (with 33 Democrats joining almost all Republicans), and the Senate 67-31 (with 17 Democrats in support). The Dodd-Frank Act, known as the most far-reaching Wall Street reform in history, was supposed to prevent the excessive risk-taking that led to the financial crisis and create a new consumer watchdog to prevent mortgage companies and payday lenders from exploiting consumers.
In her New York Times op-ed on Monday, Senator Elizabeth Warren laid it all out and discussed where we go from here. Sen. Warren, however, has been sounding the warning bell for years: "Washington is about to make it easier for the banks to run up risk, make it easier to put our constituents at risk, make it easier to put American families in danger, just so the C.E.O.s of these banks can get a new corporate jet and add another floor to their new corporate headquarters.”
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