Banking Regulation: Biden administration calls for strict measures

Joe Biden

The White House is readying plans to push federal banking regulators to impose new rules on midsize banks after the collapse of Silicon Valley Bank (SVB) earlier this month, The Washington Post reported Wednesday, citing two people familiar with the preparations.

The planned recommendations for Democrat President Joe Biden would push for rules to be reinstated for banks with between $100 billion and $250 billion that were deregulated by Congress and the Federal Reserve during former Republican President Donald Trump’s administration, the Post said.

Representatives for the White House could not be immediately reached for comment on the reported plans.

Details are still being worked out and any new measures would need to be implemented by the Fed, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency, according to the report.

Potential moves include requiring banks to have higher capital requirements, more safe assets relative to riskier loans, and crisis-ready plans for dissolution as well as more frequent so-called stress tests, the Post reported.