SVB collapse: Director of failed bank was author of Dodd-Frank reform law

Former Rep. Barney Frank (D-MA), who famously co-authored the 2010 Dodd-Frank monetary reform regulation in response to the 2008 monetary disaster, served as a director of Signature Financial institution, which failed Sunday.

The previous Democratic chairman of the Home Monetary Providers Committee in the course of the monetary disaster helped draft the regulatory laws, which aimed to forestall financial institution failures and bailouts resembling people who occurred in 2008.

SVB COLLAPSE: HERE’S EVERYTHING YOU NEED TO KNOW

The Dodd-Frank monetary reform regulation imposed new guidelines on banks together with creating new regulatory entities throughout the authorities for overseeing monetary establishments.

Regardless of the financial institution he served on the board of being seized by regulators, Frank defended the 2010 laws as stopping widespread points available in the market.

“The vindication of the bill is that nobody is talking about anything like 2008,” Frank told Bloomberg. “If the bill hadn’t been passed, we’d be seeing a lot more damage these days. We got a lot of the vulnerability out of the system.”

Congress reformed the Dodd-Frank law in 2018 by removing regulations from smaller banks and for larger regional banks. The reforms moved the threshold at which banks are subject to certain additional rules from $50 billion to $250 billion.

The collapse of New York-based Signature Bank came only two days after California-based Silicon Valley Bank was shut down by state regulators. Both banks were large regional banks in the size range that were exempted from some rules in the 2018 law.

Many on the Left are blaming the 2018 reforms on the current bank failures, but Frank spoke favorably of the changes at the time and said they are not to blame for current troubles with