Rolling Back the Rollback: Anticipating Regulatory Changes in the Aftermath of the Silicon Valley Bank Failure

Summary

This article discusses the prudential regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) and the impact to U.S. bank supervision because of rollback legislation. The March 2023 failure of Silicon Valley Bank (SVB) and Signature Bank and the continuing turmoil in the banking sector, have generated much debate in Washington about the need for a tightening of supervision and regulation of banks. Those who call for stricter rules say a part of the original regulatory regime embodied in the Dodd-Frank that became less restrictive in 2018 through 2019, should be restored, in other words, roll back the rollback.