President Biden on Thursday called on federal regulators to consider imposing stronger safeguards on the banking industry in the wake of the failure of Silicon Valley Bank, in part by reversing Trump-era rollbacks, The Hill reported. Biden urged federal banking agencies, in consultation with the Treasury Department, to consider a set of reforms that the White House said would reduce the risk of future banking crises by reinstating old rules around oversight. The White House called for reestablishing rules rolled back during the Trump administration that lowered the asset threshold for banks that receive tougher oversight; for greater liquidity requirements; and for more frequent stress tests, which evaluate potential risks that a bank could face and ensure they have enough capital to withstand potential losses. The Biden administration also suggested regulators apply long-term debt requirements to a wider range of banks. Regulators currently require the largest banks to issue a minimum amount of long-term debt, which can serve as a buffer in the event of a run on the bank. The administration is also calling on agencies to ensure the cost of replenishing the Deposit Insurance Fund, which is used to make depositors whole in the event of a failure, is not borne by smaller community banks. Read more.

Don't miss the "The SVB Collapse: What Went Wrong, and What Happens Next?" session at the Annual Spring Meeting in April. Are you registered?