The author of the deregulation law says that there is "no need" for tougher safeguards, despite the collapse of several banks

Key Highlights :

1. The 2018 bank deregulation law that Mike Crapo was a key author of weakened key guardrails designed to prevent another financial crisis.

2. Crapo insisted this week that there is "no need" for more strict rules following two of the largest bank collapses in U.S. history.

3. In a Fox Business appearance on Tuesday, the Idaho Republican deflected blame for the failures of Silicon Valley Bank and Signature Bank, both of which were in the category of firms that saw regulatory relief thanks to the 2018 law.

4. The Fed proceeded to take the Republican-authored law and run with it, further weakening safeguards against financial chaos.

5. Senators led by Sen. Elizabeth Warren, D-Mass., and Rep. Katie Porter, D-Calif., introduced legislation Tuesday that would repeal the section of the 2018 law that relaxed regulations for banks with less than $250 billion in assets.

The new Republican law that stripped key safeguards from the banking sector is largely to blame for the recent collapses of two major banks. Republicans insist there's "no need" for stricter rules following two of the largest bank collapses in US history, but experts say the law's removal of enhanced capital requirements and stress tests played a significant role. The 2018 law (S.2155) removed the "systemically important" designation and the associated regulations from SVB and Signature Bank—a change that didn't stop the Fed and the Biden administration from rushing in to backstop the financial system and prevent "contagion."

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