White House prepares new bank rule proposal after failures – source
4:49 pm Wednesday, March 29th, 2023
WASHINGTON (Reuters) -The White House is preparing to release more of its promised plans to strengthen U.S. bank oversight as soon as this week after Silicon Valley Bank’s collapse of earlier this month, according to a person familiar with the preparations.
President Joe Biden, a Democrat, is expected to 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 then-Republican President Donald Trump’s administration, according to people familiar with the matter.
The White House declined to comment. Officials had previously said their reforms would be announced in the coming days.
The measures, which are still being hatched, are likely to fall short of broad changes to existing law. The White House is skeptical that such measures can win passage in a closely divided Congress.
Instead, they would require implementing by the Fed, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency.
A variety of other steps could include raising bank capital requirements, as well as strengthening those banks’ stress tests and plans for how they could be safely wound down, analysts said.
(Reporting by Trevor Hunnicutt and Nandita Bose in Washington; Additional reporting by Susan Heavey and Pete Schroeder in Washington and Shivani Tanna in Bengaluru; Editing by Jan Harvey and Louise Heavens)
