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Donald Trump (76) thinks he knows exactly who is to blame for the bank collapse: Joe Biden! The former US president railed on his own social media platform Truth Social about the “dumpest tax increase in US history” that his successor implemented. Trump: “We’re going to have a great depression that will be much bigger and more powerful than the one in 1929. To prove it, the banks are already starting to fail.”
But: Trump himself is more likely responsible for the closure of Silicon Valley Bank and Signature Bank last week. Democratic Sen. Bernie Sanders, 81, said: “The failure is a direct result of an absurd bill to deregulate banks signed by Donald Trump in 2018, which I firmly rejected.”
Five years ago, Republicans in Congress decided to massively relax the so-called Dodd-Frank law that President Barack Obama (61) passed in 2010. This law provided rules and controls for small and medium-sized banks and was intended to prevent the state from having to intervene financially in the event of a too-big-to-fail problem.
Under Obama, small and regional banks with assets under management of $50 billion or more had to commit to special requirements, such as annual stress tests. Trump took that back. He raised the threshold to $250 billion. The two banks that have now closed, as well as the ones that have lost a lot of value, are between $50 billion and $250 billion in assets under management.
US President Joe Biden (80) is also upset. The then Vice President under Obama confirmed in a speech on Monday that this deregulation bill played a role in the collapse. “During the Obama-Biden administration, we imposed strict regulations on banks like Silicon Valley Bank and Signature Bank, including the Dodd-Frank Act, to make sure the 2008 crisis didn’t repeat itself,” he said.
At the same time, he announced that he would soon correct the error. Biden: “I will urge Congress and banking regulators to tighten regulations on banks to reduce the likelihood of another bank failure and protect American jobs and small businesses.”
Source: Blick
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
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