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March 5, 2024

Report: One Year After Silicon Valley Bank’s Failure the Banking System and Main Street Americans are Still in Danger

WASHINGTON, D.C.— Dennis Kelleher, Co-founder, President and CEO, issued the following statement in connection with the release of a new Report: One Year After Silicon Valley Bank’s Failure, and the Banking System and Main Street Americans Are Still in Serious Danger.

Just one year ago, Silicon Valley Bank (“SVB”), Signature Bank (“Signature”), and First Republic Bank (“FRB”) failed, caused a banking crisis, and got bailed out by taxpayers. These were three of the four largest bank failures in U.S. history, and directly cost Americans more than $30 billion in bailouts, but really cost much more due to contagion, credit contraction, and as much as 1% of lost GDP. Despite the acute fear of systemic risk that gripped the nation and spurred federal banking regulators to employ a systemic risk exception to protect the banking system from contagion, little has actually changed in the last year. We are well past the time for talking; banking regulators must promptly take meaningful action.

“Our financial system, economy, and the American people remain vulnerable to bank failures and contagion, as illustrated by the ongoing crisis at New York Community Bancorp. Most importantly, policymakers need to act now with as much urgency to prevent the next crisis as they do when bailing out banks when a crisis hits. This regulatory failure is inexcusable: regulators bailed out the banks in 2023 with tens of billions of dollars in a matter of hours, but even now—more than a year later—there have been no concrete material changes specifically addressing the causes of the crash. As Chairman Powell testifies before Congress this week, there is still a lack of accountability from regulators and no plan of action to prevent a future crisis.

“Our report details how the Trump administration severely weakened banking regulation and supervision. While steps taken to strengthen banking supervision after the 2008 Crash did lead to some real improvements, key elements were later undermined by Trump administration appointees at the banking regulators.  Large bank supervision still fell short in several key areas and that must be properly and promptly addressed if the financial system is to  become substantially safer.

“The regulatory failure of 2023 must be used as a catalyst to make urgent changes to the banking system including improving and strengthening regulatory capital rules, increasing and enhancing resolution planning, adopting improved and enforceable corporate governance and risk management guidelines, holding bank executives accountable, increasing the impact of enforcement actions, and eliminating ineffective supervisory guidance.”

The Report is available here.


Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit

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