Earlier this week, First Republic Bank failed. Federal regulators seized its assets and promptly sold most of it to financial behemoth JPMorgan Chase & Co. It was the second largest bank failure in U.S. history, and the third such bank to collapse in two months after Silicon Valley Bank and Signature Bank in March.
What did these three banks have in common? They all benefited from a 2018 weakening of the Dodd-Frank Act, which loosened oversight and regulation of midsized banks that then allowed executives to recklessly gamble with our money. Elizabeth Warren warned us this would happen, and it did. Now Congress must take action.