Trump Signs Dodd-Frank Rollback Raising 'Systemically Important' Bank Threshold from $50B to $250B After Industry Lobbying Blitz

President Trump signs the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155), dramatically weakening post-2008 financial regulations by raising the asset threshold for ‘systemically important financial institution’ (SIFI) designation from $50 billion to $250 billion. The bill passes with support from 50 Republicans and 17 Democrats after a nearly $50 million lobbying campaign by mid-sized banks over 18 months. Silicon Valley Bank CEO Greg Becker led the charge, testifying to Congress in 2015 that the $50 billion threshold would ‘stifle our ability to provide credit’ and arguing that $250 billion was more appropriate. SVB spent over $500,000 on federal lobbying between 2015-2018, employing former McCarthy staffers and other revolving-door operatives. The rollback exempts banks like SVB (which would collapse in 2023) from enhanced prudential standards, stress tests, and stricter capital and liquidity requirements that were specifically designed to prevent the kind of interest rate risk mismanagement that later destroys SVB. Senator Elizabeth Warren warns the bill will lead to future bank failures. The Federal Reserve’s own 2023 post-mortem on SVB’s collapse confirms that ’the Board’s tailoring approach in response to EGRRCPA and a shift in supervisory policy impeded effective supervision by reducing standards, increasing complexity, and promoting a less assertive supervisory approach.’ The rollback exemplifies regulatory capture through concentrated industry lobbying overwhelming public interest protections.