Dem Rep. Gottheimer on SVB: Regulation Rollback Was Not a Mistake

BOLDUAN I don t ░░░░░░░░ you were plugged in ░░░░░░░░ not but Mark Zandi ░░░░░░░░ I I was just ░░░░░░░░ him to weigh in ░░░░░░░░ what he views as ░░░░░░░░ rollback of regulation could ░░░░░░░░ played in this crisis ░░░░░░░░ he says you know ░░░░░░░░ may not have been ░░░░░░░░ direct exact cause of ░░░░░░░░ it wouldn t have ░░░░░░░░ to have those regs ░░░░░░░░ on the books So ░░░░░░░░ if it was not ░░░░░░░░ driving reason behind the ░░░░░░░░ s collapse do you ░░░░░░░░ now that voting for ░░░░░░░░ bill in 2018 was ░░░░░░░░ mistake GOTTHEIMER No because ░░░░░░░░ that bill a couple ░░░░░░░░ things one it allowed ░░░░░░░░ Fed if you have ░░░░░░░░ than 100 billion of ░░░░░░░░ to actually do an ░░░░░░░░ stress test For some ░░░░░░░░ the Fed didn t ░░░░░░░░ that they were doing ░░░░░░░░ every other year so ░░░░░░░░ want to understand why ░░░░░░░░ the second thing is ░░░░░░░░ of the importance of ░░░░░░░░ legislation was ensuring that ░░░░░░░░ banks could be strong ░░░░░░░░ when Dodd Frank was ░░░░░░░░ it literally had all ░░░░░░░░ same requirements for the ░░░░░░░░ banks the Chases of ░░░░░░░░ world and also your ░░░░░░░░ banks So what was ░░░░░░░░ was all the community ░░░░░░░░ were going out they ░░░░░░░░ consolidating and selling to ░░░░░░░░ big banks and it ░░░░░░░░ going to the opposite ░░░░░░░░ of what we were ░░░░░░░░ to create which was ░░░░░░░░ away from a few ░░░░░░░░ that were too big ░░░░░░░░ fail So the question ░░░░░░░░ was really why weren ░░░░░░░░ the regulators the oversight ░░░░░░░░ weren t they doing ░░░░░░░░ proper job to make ░░░░░░░░ the asset mix was ░░░░░░░░ That is what I ░░░░░░░░ really interested to hear ░░░░░░░░ wasn t a question ░░░░░░░░ whether or not this ░░░░░░░░ had enough assets on ░░░░░░░░ balance sheet it was ░░░░░░░░ question of ratios and ░░░░░░░░ mix and the long ░░░░░░░░ Treasury bills and investments ░░░░░░░░ of course what they ░░░░░░░░ in liquid cash and ░░░░░░░░ is really the question ░░░░░░░░ we have to get ░░░░░░░░ the bottom of The ░░░░░░░░ thing Kate is we ░░░░░░░░ t want to go ░░░░░░░░ to a world of ░░░░░░░░ big to fail and ░░░░░░░░ small to survive That ░░░░░░░░ be a disaster for ░░░░░░░░ in our country I ░░░░░░░░ and we need strong ░░░░░░░░ banks and I will ░░░░░░░░ saying that over and ░░░░░░░░ again and I want ░░░░░░░░ make sure that we ░░░░░░░░ able to have a ░░░░░░░░ where larger institutions obviously ░░░░░░░░ be strong and protected ░░░░░░░░ so can smaller institutions ░░░░░░░░ depositors can feel safe ░░░░░░░░ small businesses that when ░░░░░░░░ put their money in ░░░░░░░░ bank it will be ░░░░░░░░ in the morning BOLDUAN ░░░░░░░░ and they can have ░░░░░░░░ that overnight their bank ░░░░░░░░ t shut its doors ░░░░░░░░ tell them to go ░░░░░░░░ elsewhere and so long ░░░░░░░░ luck It is great ░░░░░░░░ have you Thank you ░░░░░░░░ much Sorry go ahead ░░░░░░░░ No I m just ░░░░░░░░ that is the contagion ░░░░░░░░ we have to keep ░░░░░░░░ watchful eye on in ░░░░░░░░ coming weeks and we ░░░░░░░░ all going to be ░░░░░░░░ toward it in the ░░░░░░░░ and the administration BOLDUAN ░░░░░░░░ forward to that As ░░░░░░░░ know you have a ░░░░░░░░ of questions to be ░░░░░░░░ Congressman thanks for your ░░░░░░░░