Washington, D.C. (Newsradiowrva.com) - In a zoom call with Virginia reporters, Senator Tim Kaine (D) defended his vote in 2018 to rollback some banking reforms from the Dodd-Frank bill. Some people have blamed the rollback for the failure of Silicon Valley Bank, and others, creating instability in the banking industry and beyond.
Kaine says the rollback was necessary to "right-size" regulations. He says the regulations were too stringent for community and regional banks, who instead of complying, chose to sell to larger banks instead. He says Virginia lost more than 20% of its banks after Dodd-Frank. The Democrat also says he isn't sure the rollback is responsible for this month's bank failures, but he is open to reform after an analysis of what happened is completed.
Kaine says "too big to fail" became "too small to succeed"