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

EXCERPT:

GOTTHEIMER: "No, because in that bill -- a couple of things -- one, it allowed the Fed, if you have more than $100 billion of assets, to actually do an annual stress test. For some reason the Fed didn't do that, they were doing it every other year, so I want to understand why. And the second thing is, part of the importance of that legislation was ensuring that community banks could be strong, so when Dodd-Frank was passed, it literally had all the same requirements for the biggest banks, the Chases of the world, and also your community banks. So what was happening was all the community banks were going out, they were consolidating and selling to the big banks, and it was going to the opposite effect of what we were trying to create, which was getting away from a few banks that were too big to fail. So the question here was really why weren’t the regulators, the oversight, why weren't they doing their proper job to make sure the asset mix was correct? That is what I am really interested to hear.”