New Bank Regulations Will Hurt Small Businesses and Middle-Class Borrowers the Most

The Federal Deposit Insurance Corporation seal outside its headquarters, in Washington, D.C., on March 14, 2023. Manuel Balce Ceneta/AP Photo

Commentary

The rapid succession of bank failures last spring clearly spooked federal regulators at the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and bank depositors. The bad decision-making at Silicon Valley Bank, Signature Bank, and First Republic Bank caused the regulators to implement emergency life preserver measures to banks and conjured up memories of the 2008 financial crisis.