Katie Porter: “Back in 2017, I took a public stand against Wall Street and its efforts to roll back the financial regulations put in…”

“Back in 2017, I took a public stand against Wall Street and its efforts to roll back the financial regulations put in place after the 2008 financial crisis. I opposed S. 2155, a deregulatory bill that ultimately passed into law. Then, in 2017 and 2018, I was running for Congress for the first time in a politically divided district. Standing against Wall Street wasn't a safe position to take. In fact, that is why too many Republican and Democratic lawmakers alike ended up supporting S. 2155. It was seen as safer to be pro-business. Every real capitalist knows there is nothing pro-business about a bank failure. That is why, in 2010, Congress passed strong regulations to keep our economy stable, our banks viable, and our businesses growing. Just 8 years later, in 2018, Washington, D.C., reversed course and passed S. 2155 at Wall Street's behest. How did we get from this deregulation to the recent Silicon Valley Bank failure, the biggest bank failure in over a decade? In short, S. 2155 made it lawful for Silicon Valley Bank to leave itself vulnerable when depositors wanted their money back faster than the bank could pay it out. When you walk into a bank, Madam Speaker, and you deposit $100, the bank takes most of that $100 and invests it. They buy securities and bonds. They don't just have your $100 sitting around. However, the bank is supposed to hang on to a big enough portion of that deposit so that if you want your money back, they can give it to you.…”