Congressman Moulton Introduces Bill to Stabilize Vulnerable Banks and Protect American Families
WASHINGTON, D.C. – On Tuesday, March 14, Congressman Seth Moulton (MA-06) introduced the Stabilizing Vulnerable Banks (SVB) Act. The SVB Act would restore critical banking regulations from the Dodd–Frank Wall Street Reform and Consumer Protection Act (2010) that were rescinded during the Trump administration.
The bill restores prior thresholds for regulations governing large banks with assets over $50 billion. The current limit was raised from $50 billion to $250 billion after Republicans claimed banks of this size would not pose a threat to the banking system as a whole.
The rapid and unexpected collapse of Silicon Valley Bank last week, and the ongoing challenges posed to our nation’s financial system, demonstrate a clear need for continued, stringent oversight over our nation’s banking system. In order to keep the system stable, the FDIC under the Biden administration has already stepped in to ensure depositors of Silicon Valley Bank and Signature Bank — largely made up of small businesses and nonprofits — would not be forced to lay off hundreds of thousands of employees and trigger massive bank runs that could lead us into a depression.
“We can’t afford to let a collapse like the Silicon Valley Bank’s crater our entire banking system,” said Congressman Moulton. “This legislation restores important regulations that kept the economy afloat in the aftermath of the 2008 financial crisis. Speaker McCarthy must join us to ensure the government can do its job and protect American families.”