Washington D.C. — Righteous indignation was on full display by Republicans on the Senate Banking and House Financial Services Committee hearings on the Silicon Valley Bank Collapse. One by one, Republicans scolded federal regulators while vehemently denying the 2018 Republican-led, financial industry-pushed, Trump-signed law that gutted Dodd-Frank’s risk-assessment safeguards for midsize banks had anything to do with the crisis. 

Except it did. The effort, championed by HFSC Chairman Patrick McHenry himself, gave a key Trump-appointed regulator, Federal Reserve Vice Chair Randal Quarles, all the “discretion” the former banker needed to drive “an overall cultural and practical shift in which banks expected, and got, more lax treatment from their supervisors” – paving the way for banks like SVB to take huge risks beyond their means without fear of real federal consequences. One by one, Republican members disingenuously waved the finger at current federal regulators despite their testimony that they opposed the Quarles-led deregulation efforts at the time. 

Congressional Republicans are understandably desperate to rewrite history and deflect blame from themselves for the banking crisis – but reality is not on their side. Chairman McHenry and fellow conservatives in the pocket of the financial industry rammed through a law that weakened Congressional oversight of midsize banks and pawned off responsibility to a Trump-appointed regulator who they knew shared their loyalties to Wall Street special interests. Predictably, the culture of hands-off banking supervision at the Fed instilled during the Trump administration led to risky behavior that ultimately caught up with mismanaged banks. That

Chairman McHenry and others are now using the crisis they invited to deride any further financial industry reform is peak projection and next-level shilling for their industry donors.

If Chairman McHenry were serious about ‘getting to the bottom’ of what happened, where’s the testimony from the former Trump official that ran wild with deregulation of banks like SVB thanks to McHenry’s own Dodd-Frank rollback bill?"

Liz Zelnick, Director of government watchdog Accountable.US’ Economic Security & Corporate Power program.

Chairman McHenry The Least Credible Person in Congress to ‘Get to the Bottom’ of What Caused Banking Crisis. In the aftermath of SVB and Signature Bank’s collapse, at least ten economic experts have called the collapse “a 100 percent avoidable problem,” blaming weakened banking regulations – including S. 2155, the so-called Economic Growth, Regulatory Relief, and Consumer Protection Act — for “allowing banks like SVB and Signature to increase deposits” in the absence of stress tests. There was no bigger cheerleader at the time than current HFSC Chairman Patrick McHenry – who proclaimed S. 2155 was a “win for consumers” and an “important first step to undo Dodd Frank,” adding that he was “proud to have played an active role in drafting this bill.” Accountable.US found Silicon Valley Bank and its parent company gave $10,000 to McHenry on top of the over $5 million he’s taken from the financial industry. Even as banks were on the cusp of collapse, McHenry was busy glad-handing and with executives of one of the failing banks at a ritzy fundraiser in his honor.




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