Last week’s internet-enabled on a separate bank dereg bill in 2018, blaming the bank itself and wondering what changes to make. Sen. Mark Warner (D-Va.), who made his fortune in the telecom industry, said that when Washington Mutual, a savings and loan, failed in 2008, it took 10 days for depositors to withdraw $16 billion.
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“I’m not sure what regulatory system, anywhere, no matter how much capital and how many stress tests, would have protected any institution from a $42 billion bank run in a single day. That literally, at that point, was 25 cents on the dollar of every dollar that was deposited,” he said.
“I’m not sure what regulatory system, anywhere, no matter how much capital and how many stress tests, would have protected any institution from a $42 billion bank run in a single day.”
– Sen. Mark Warner (D-Va.)
The concerns are not necessarily unique to Democrats, either. Sen. Josh Hawley (R-Mo.), a high-profile conservative, told HuffPost Wednesday Glass-Steagall ought to be revisited.
“We used to separate commercial banks and investment banks and, you know, the FDIC only oversaw and the guarantee was only for commercial banks,” he said. “I think we need to bring that rule back.”
Hawley said he worried about a further concentration in the financial services industry because of how SVB was handled.
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“We’re going to have three banks in this country. I think that’s terrible, terrible, terrible.”
Arthur Delaney contributed to this story.
