The Daily Barney Frank on His Role in the Banking Crisis
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Mar 22, 2023 Barney Frank, a former Congressman pivotal in reshaping financial regulation post-2008, joins David Enrich, The New York Times' business investigations editor. They delve into Frank's legacy regarding the relaxation of banking regulations and its consequences in today's financial landscape. With a recent bank failure, they explore the implications of his decisions, the turbulent journey of mid-sized banks, and the ongoing debates about the stability of the banking system amidst potential systemic risks. Frank reflects on his career's challenges and contradictions.
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Frank's Role Reversal
- Barney Frank, key figure in post-2008 financial regulation, later supported weakening those regulations.
- He joined the board of Signature Bank, which benefited from these changes, and the bank ultimately failed.
Frank's Shift to Finance
- Barney Frank, initially focused on fair housing, became a powerful voice in financial regulation after the 2008 crisis.
- His committee's role shifted to stabilizing and fixing the financial system.
Dodd-Frank's $50 Billion Threshold
- Banks with $50 billion or more in assets faced stricter regulations under Dodd-Frank.
- This aimed to prevent the type of crisis caused by large banks in 2008.