The White House also seeks to require firms with between $100 billion and $250 billion to give regulators comprehensive resolution plans, or living wills.
The Biden administration is calling for the reinstatement of banking rules that were rolled back during the Trump era, according to a White House fact sheet released Thursday.
The proposal, which follows the collapse this month of Silicon Valley Bank and Signature Bank, fits into Biden’s efforts “to strengthen oversight and regulation of larger banks so that we are not in this position again,” the Biden administration said.
“The Obama-Biden Administration put in place strong requirements — primarily through the Dodd-Frank Act and subsequent regulations and supervision — to reduce the risk of future banking crises,” Biden officials said. “Unfortunately, Trump Administration regulators weakened many important common-sense requirements and supervision for large regional banks like Silicon Valley Bank and Signature Bank, whose recent failure led to contagion.”
The White House called for federal bank regulators, in consultation with the Treasury Department, to consider reforms that would reduce the risk of future banking crises.
