White House presses banks to enforce new rules

In the US, the Joe Biden administration called on regulators to tighten regulations for midsize banks. The White House claimed that this could be done without the support of the divided Congress.

The White House announced that banks with assets between $100 billion and $250 billion should have more liquid assets, increase their capital, undergo regular stress tests and prepare “wills.”

‘IT CAN BE DONE WITHIN THE CURRENT LEGAL FRAMEWORK’

“These are all steps that can be taken under existing law, and as a result, Congress need not act to authorize institutions to take any of these steps,” a senior White House official said.

The US Silicon Valley Bank (SVB) and Signature Bank went bankrupt three weeks ago, sparking a turbulent period in the markets. The markets are also concerned that the bankruptcies will turn into an international banking crisis. (Reuters)