The current global banking crisis, according to the White House, is now in the hands of Congress. The president of the United States spoke earlier this week, assuring frightened depositors that their money was secure at their preferred financial institutions. He has also touted a slew of regulatory changes designed to shore up weak banks. Nonetheless, he had said little about the market volatility.
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The White House Sentiments
On the other hand, White House officials are said to have emphasized the president’s desire for stricter procedures to prevent future catastrophes. The guidelines contain provisions that would empower the Federal Deposit Insurance Corporation to punish executives of insolvent banks even harsher, as well as tighten requirements for larger banks.
The White House then emphasized that, while there is a tiny chance that these new rules will pass through the split Congress, they must still be authorized by lawmakers first, decreasing hopes that the president will enact them using his executive power.
The White House Press Secretary, Karine Jean-Pierre, stated, “We should not let Congress off the hook.” She emphasized that more efforts are required, but she promised that the president has already taken action to address the current problem. Sadly, the House and Senate leaders appeared to be uninterested in taking up such legislation, turning the subject into a political hot potato – at least for the time being.
White House’s Stand on the Banking Crisis
The White House is supposedly walking a tightrope in responding to the current banking crisis. Biden’s advisers are attempting to avoid the further panic that could worsen the current situation by outwardly projecting calm but also addressing the matter substantively in order to maintain confidence in the financial system.
It is uncertain how long the White House will be able to sustain that attitude in the face of congressional inaction at the time of writing. Speaker Kevin McCarthy has already dismissed the necessity for new legislation targeting banks, stating that the crisis is not a “regulatory problem,” while Senate Majority Leader Charles Schumer has called for “strong legislation” that is bipartisan.