![]() Under heavy lobbying by small and midsize banks, lawmakers said financial institutions that did not pose systemic risks akin to the biggest banks were unnecessarily disadvantaged by the Dodd-Frank requirements enacted after the 2008 financial meltdown. At the time, Warren opposed the GOP-led deregulatory measure that benefited banks such as SVB, but 17 Democrats voted with Republicans in 2018, ensuring passage. The legislative effort also reignites rifts within the Democratic Party. Chances of the legislation attracting GOP support in the absence of a full-blown financial crisis are slim. ![]() Katie Porter, a Democrat seeking a California Senate seat next year, have crafted a bill along with cosponsors from their party in the House and Senate, that would repeal 2018 changes signed by former President Trump easing restrictions on midsize banks under the Dodd-Frank banking reform law ( NBC News). ▪ Bloomberg News: Credit Suisse fueled a broader rout in European bank stocks. Switzerland’s central bank and FINMA, the country’s financial regulator, vouched for the bank’s overall financial health in a Wednesday statement, but Credit Suisse on Tuesday had conceded problems in its financial reporting controls discovered after queries by the Securities and Exchange Commission. In an international financial system in which Credit Suisse’s tentacles spread in many directions, its vulnerabilities sparked new investor fears and responses that began to feed on themselves. It has been battered by years of financial missteps, including huge trading losses and scandals that have cost it two chief executives over three years, the Times reported. But the Zurich bank’s higher costs of overnight funding, based on the price of its credit-default swaps, meant it needed to move quickly. ![]() Bernie Sanders (I-Vt.) told Reuters, “Everybody is concerned.”Ĭredit Suisse’s challenges are not the same as those that sent Silicon Valley Bank, nearly 6,000 miles away in California, into insolvency last week. investor anxieties and helped send the Dow Jones Industrial Average down 280 points by the end of the trading day ( The Washington Post and The New York Times).Īsked about the impact of Credit Suisse’s problems on the U.S. Treasury Department spent Wednesday in contact with global counterparts and monitored evolving developments, which also served to compound U.S. Fears after a rough 24-hour period appeared to be allayed. The bank’s shares soared as markets opened today on news of the Swiss National Bank’s lending decision.
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