These 13 Democratic senators joined with Republicans to roll back banking regulations in 2018. Progressives say that contributed to Silicon Valley Bank’s

Democratic Sens.  Maggie Hassan of New Hampshire, Mark Warner of Virginia, and Jon Tester of Montana all voted for the 2018 bill.

Democratic Sens. Maggie Hassan of New Hampshire, Mark Warner of Virginia, and Jon Tester of Montana all voted for the 2018 bill.Tom Williams/CQ-Roll Call via Getty Images

  • Progressives are blaming the collapse of Silicon Valley Bank on a 2018 rollback of banking regulations.

  • The bill was championed by Republicans — but it couldn’t have passed without Democratic support.

  • These 13 current members of the Senate Democratic caucus helped Republicans pass the law.

In the wake of the collapse of Silicon Valley Bank, a 2018 bill championed by Republicans and former President Donald Trump has received renewed scrutiny.

But the bill couldn’t have passed the Senate — which required 60 votes to pass most legislation — without the support of several Democrats.

The “Economic Growth, Regulatory Relief, and Consumer Protection Act” was a package of banking reforms that weakened aspects of the Dodd-Frank Act, a series of new regulations instituted in the wake of the 2008 financial crisis.

In particular, the legislation raised the threshold at which a bank is deemed “too big to fail” from $50 billion in assets to $250 billion, subjecting banks under that threshold to less regulatory scrutiny.

Silicon Valley Bank reported $212 billion in assets in the final months of 2022, placing it just under the higher threshold.

Progressives have since been seized on the law as a key reason for the bank’s failure.

“Let’s be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed,” said Independent Sen. Bernie Sanders of Vermont in a statement on Sunday.

Democratic Sen. Elizabeth Warren of Massachusetts wrote in the New York Times that SVB’s failure was “entirely avoidable,” calling for the repeal of the “dangerous” 2018 legislation.

And at the time, she directly criticized her Democratic colleagues for their support of the bill, which she had dubbed the “Bank Lobbyist Act.”

“This bill wouldn’t be on the path to becoming law without the support of these Democrats,” she said wrote on Twitter at the time.

And fellow progressive Democratic Rep. Ro Khanna of California said on Monday that “too many” Democrats voted for the bill.

Democratic Sen. Mark Warner of Virginia, among the 17 Democratic senators at the time who voted for the bill, has since defended his vote.

“I think it put in place an appropriate level of regulation on mid-sized banks,” Warner said on ABC News on Sunday, adding “these mid-sized banks needed some regulatory relief.”

After clearing the Senate in March 2018, the bill passed the House that May, when then-Democratic Rep. Kyrsten Sinema of Arizona — now an independent member of the Senate Democratic caucus — joined 32 other Democrats in support. It was signed into law by Trump days later.

Since 2018, some of the Democrats who supported the bill have either retired or lost re-election. But those who remain are likely to face questions from the press and colleagues about the 2018 legislation in the coming weeks, particularly as progressives push to repeat it.

Here are the 13 members of the Senate Democratic caucus that supported the bill:

  • Mon. Michael Bennett of Colorado

  • Mon. Tom Carper of Delaware

  • Mon. Chris Coon of Delaware

  • Mon. Maggie Hassan of New Hampshire

  • Mon. Team Kaine of Virginia

  • Mon. Angus King of Maine

  • Mon. Joe Manchin of West Virginia

  • Mon. Gary Peters of Michigan

  • Mon. Kyrsten Cinema of Arizona

  • Mon. Jeanne Shaheen of New Hampshire

  • Mon. Debbie Stabenow of Michigan

  • Mon. Jon Tester of Montana

  • Mon. Mark Warner of Virginia

Read the original article on Business Insider

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