On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

Key Democrats Feud Over Recent Banking Sector Turmoil

Two masterminds of the post- 2008 Wall Street regulation system, Rep. Barney Frank and Senator Elizabeth Warren, yet again differ about what is causing banks to fold. While in office, Frank chaired the Committee for House Financial Services just as the global financial crisis hit and he wrote sweeping new rules for the financial sector. He also served as a member on the Board of the New York Signature Bank which was shut down recently.

Frank blames Signature’s fall on the crypto panic that started last year. His bank was one of the privileged few that served the industry. A bipartisan regulatory roll back ascented into law by former president Trump in 2018 was fueled by the desire to even the regulation of mid- sized banks like his own, though it had no impact, Frank argues.

But a fellow Massachusetts democrat, Senator Elizabeth Warren, lays the blame squarely on the former president Trump. Trump’s era eased some bank oversight and Signature Bank is a very good example. She claims that if Congress and Federal Reserve had not rolled back the stricter oversight, Signature and Silicon Valley banks could have withstood the financial shocks.

The gap between the two Democrats is a premonition of what is to come while Democrats align positions on how to tackle the most recent banking crisis that culminated into the bail out of Signature and Silicon Bank depositors over the weekend. Frank said he and other lenders ran into trouble with the federal loans bank at a time Signature was applying for money, and the Federal Loan Bank told Signature Bank that they didn’t have much to go around owing to the too many requests they were getting.

Frank and Warren seem to agree on one issue – their support for bigger depositor protection. The Federal Deposit Cnsurance caps its protection at $25,000 though regulators and the Biden administration pledged to fund all the deposits at the banks that went belly up.

Regulators must reform the deposit insurance in this crisis so that in the future, enterprises seeking to make payroll are fully covered, Frank commented in a New York Times op-ed. Frank is happy that the government has vindicated him through their decision to guarantee deposits because during his tenure as a Republican, he desired to pass the legislation that would expand the deposit insurance specifically for business.

Meanwhile, the wider cryptocurrency industry and its leading actors like Canaan Inc. (NASDAQ: CAN) awaits the formulation of comprehensive regulations which can serve as guideposts to the entities operating in this space.

About CryptoCurrencyWire

CryptoCurrencyWire (“CCW”) is a financial news and content distribution company that provides (1) access to a network of wire services via InvestorWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets, (3) enhanced press release services to ensure maximum impact, (4) social media distribution via IBN (InvestorBrandNetwork) to nearly 2 million followers, and (5) a full array of corporate communications solutions As a multifaceted organization with an extensive team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled visibility, recognition and brand awareness. CCW is where news, content and information about crypto converge.

To receive instant SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.cryptocurrencywire.com

Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://CCW.fm/Disclaimer

CryptoCurrencyWire (CCW)
New York, New York
www.cryptocurrencywire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com

CryptoCurrencyWire is part of the InvestorBrandNetwork.

Archives

Select A Month

Official NewsWire Relationships

Anarchapulco Main Event Blockchain Africa Conference Blockchain Futurist Conference Blockchain Life Conference Blockchain Shift Coingenius Coinvention CryptoBlockCon CryptoFest European Blockchain Convention EVOLV - evolve.events Finovate nftexpoverse Paris Blockchain Week The North American Bitcoin Conference Virtual Blockchain Week The Voice of Blockchain World Crypto Conference

CryptoCurrencyWire Currently Accepts

Bitcoin

Bitcoin

Bitcoin Cash

Bitcoin Cash

Doge Coin

Dogecoin

Ethereum

Ethereum

Litecoin

Litecoin

USD Coin

USD Coin

Contact us: 212.994.9818