SVB Failure Sparks Blame Game Over Trump-Era Regulatory Rule

March 13, 2023

Legions of executives from other smaller and mid-sized banks, collectively known as regional lenders, were making a similar case. It freed up mid-sized firms like SVB from some of the strictest post-crisis regulations and cut their compliance costs. But, collectively, regional lenders have grown rapidly and now count trillions of dollars in assets. The biggest banks are seeking to flip on its head the argument that Becker and other regional bank executives successfully made last decade. JPMorgan Chase & Co. initially faced investor pushback when it didn’t immediately plow excess deposits into securities, but the firm’s executives said they’d rather have more cash on hand if needed.