Episode
Barney Frank on His Role in the Banking Crisis
36:06
Published: Wed Mar 22 2023
Description
Barney Frank was one of the people most responsible for overhauling financial regulation after the 2008 economic crisis. After retiring from Congress, he supported a change to his own law that would benefit midsize banks, and joined the board of such a bank. Last week, that bank failed. David Enrich called Mr. Frank and asked him to explain.Guest: David Enrich, the business investigations editor at The New York Times.Background reading: Officials with Signature and Silicon Valley banks, which regulators seized in recent days, had called for looser financial requirements for midsize banks.Here’s why people are worried about banks.For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.
Chapters
After playing a key role in overhauling financial regulation following the 2008 global financial crisis, former Congressman Barney Frank speaks with David Folkenflik about recent developments in the banking system and the need for ongoing regulation.
00:00 - 02:46 (02:46)
Summary
After playing a key role in overhauling financial regulation following the 2008 global financial crisis, former Congressman Barney Frank speaks with David Folkenflik about recent developments in the banking system and the need for ongoing regulation.
EpisodeBarney Frank on His Role in the Banking Crisis
PodcastThe Daily
The Dodd-Frank Act was a sweeping set of financial reforms that was enacted in response to the 2008 financial crisis, with the goal of ensuring that banks would have high levels of financial stability and intense federal supervision.
02:46 - 07:46 (05:00)
Summary
The Dodd-Frank Act was a sweeping set of financial reforms that was enacted in response to the 2008 financial crisis, with the goal of ensuring that banks would have high levels of financial stability and intense federal supervision. The crisis stemmed from the housing market crash, which revealed that many of the country's biggest banks had invested heavily in mortgages and mortgage-backed securities.
EpisodeBarney Frank on His Role in the Banking Crisis
PodcastThe Daily
Signature Bank invited Barney Frank to join its board of directors just as it was approaching having $50 billion in assets, which would mean it has to face a new level of federal oversight, and all sorts of financial requirements.
07:47 - 16:11 (08:23)
Summary
Signature Bank invited Barney Frank to join its board of directors just as it was approaching having $50 billion in assets, which would mean it has to face a new level of federal oversight, and all sorts of financial requirements.
EpisodeBarney Frank on His Role in the Banking Crisis
PodcastThe Daily
The proposed change to increase the threshold after which a bank undergoes extra intense oversight from $50 billion to $250 billion is questioned by experts as they recount the negative consequences of sudden growth rate changes, while former Chairman Frank cited the previous $50 billion threshold as being arbitrary and a mistake.
16:11 - 21:50 (05:38)
Summary
The proposed change to increase the threshold after which a bank undergoes extra intense oversight from $50 billion to $250 billion is questioned by experts as they recount the negative consequences of sudden growth rate changes, while former Chairman Frank cited the previous $50 billion threshold as being arbitrary and a mistake.
EpisodeBarney Frank on His Role in the Banking Crisis
PodcastThe Daily
The recent collapse of two big regional banks in the US has brought into question the effectiveness of financial regulation, which included raising the cap from $50 billion to $250 billion, creating an arms race and doubling or quadrupling the size of banks in a few years.
21:52 - 27:14 (05:22)
Summary
The recent collapse of two big regional banks in the US has brought into question the effectiveness of financial regulation, which included raising the cap from $50 billion to $250 billion, creating an arms race and doubling or quadrupling the size of banks in a few years.
EpisodeBarney Frank on His Role in the Banking Crisis
PodcastThe Daily
The collapse of Signature Bank and Silicon Valley Bank was a major concern for the financial industry.
27:18 - 34:24 (07:06)
Summary
The collapse of Signature Bank and Silicon Valley Bank was a major concern for the financial industry. The size and speed of growth of banks is one of the reasons that regulators had to shut them down, according to an investigation by critics.
EpisodeBarney Frank on His Role in the Banking Crisis
PodcastThe Daily
The second largest public school system in the US, based in Los Angeles, has been brought to a halt as 30,000 school workers strike over what they consider to be low pay in a city with a high cost of living.
34:24 - 36:01 (01:36)
Summary
The second largest public school system in the US, based in Los Angeles, has been brought to a halt as 30,000 school workers strike over what they consider to be low pay in a city with a high cost of living. The union wants a 30% raise and city officials have countered with a 23% raise, warning that the strike will harm students and their families.