Heidi Heitkamp

US Senate Greasing Skids for Next Bank Crash

Lehman Brothers 1850-2008 (AP Images)

On Tuesday, the U.S. Senate voted to begin floor debate on a bill (S. 2155) that would weaken regulations of banks, large and small, and grease the skids for the next bank crash. After the severe bank crash of 2008, in order to guard against future such crashes, Congress passed the Dodd-Frank law, which enacted the regulations the bill would now weaken. The Congressional Budget Office (CBO) scored the bill for budget costs, and figured $671 million over ten years. But the CBO said its estimate was "subject to considerable uncertainty" due to a "slightly greater" "probability in any year that a systemically important financial institution (SIFI) will fail or that there will be a financial crisis." However, in 2008, we saw what some of the real cost to the country could be: $821 billion to the federal government, plus $3.4 trillion in real estate wealth and 5.5 million jobs lost.