Requirements for Domestic and Foreign Banking Organizations Federal Reserve Board Dodd-Frank Liquidity Requirementsīecause Trump’s EGRRCPA eliminated important elements of Dodd-Frank’s Title I, Silicon Valley Bank and other banks of that asset size, are not required to calculate and report the Liquidity Coverage Ratio, the Net Stable Funding Ratio, or to conduct comprehensive liquidity assessment reviews. It was $212 billion in assets on Friday, March 10, 2023, the day that California’s Department of Financial Protection and Innovation closed it down and appointed the Federal Depository Insurance Corporation as the receiver for the failed bank. From that year to last week, SVB had grown by 430%. In the statement that he submitted to the Senate Banking Committee, he stated that “since the enactment of the Dodd-Frank Act, we have made meaningful investments to our risk systems, hired additional highly skilled risk professionals, and established a standalone, independent Risk Committee of our Board of Directors.” Becker’s statement did not age well. He argued that his bank was not a big bank, since it had under $40 billion in assets.

Just ask California how things are going now with the SVB VB management-caused chaos.Įven as early as 2015, CEO Greg Becker lobbied for lighter regulations. EGRRCPA supporters ignored the fact that while a failing or failed bank may not destabilize the entire national banking system, it sure can destabilize a region. Only those $250 billion or larger would now receive the systemically important designation. Just by EGRRCPA changing the asset size, banks like Silicon Valley Bank were no longer designated as systemically important.

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