senator and banking community ranking member pat toomey great to see you, senator.we are watching the markets, we should say, in a true sell-off mode, in large part now on the back of concerns about european banks, including credit suisse credit suisse off to close to 20% right now. and that has people nervous. but i'm curious on svb and how you think about the regional banks here in the united states and whether you think more dominos fall or given what the treasury and the federal reserve have said about trying to protect depositors that we're in the clear. >> well, no question that they have taken a very, very dramatic step here. so, i think the risk is much reduced, but, andrew, i think the really important lesson that we have to internalize from the whole episode is just how dangerous it is to have extremely and prudent monetary policy i think that's the source of this problem i think about it this way. first we had wildly excessive spending and at the same time long after the financial system was clearly no longer in peril, the fed was still maintaining unbeli

joining us to discuss, former republican senator pat toomey from the commonwealth of pennsylvania, toomeyas on the senate banking committee until he retired a few months ago. senator, thank you for joining us. in 2018, you were one of the senators to roll back parts of the dodd frank reform act which eased restrictions on some banks. >> yeah. >> we heard president biden and others saying the rollback could have contributed to the banking failure. take a listen to senator bernie sanders on the floor 2018, warning that a bank pretty much this size as silicon valley bank, failing would be likelier with this deregulation. let's roll that clip. >> just yesterday, the congressional budget office told us that the legislation we are debating today will, and i quote, increase the likelihood that a large financial firm with assets of between $100 billion and $250 billion would fail. end of quote. that's the cbo. in other words, this legislation makes it more likely that we will see another financial crisis. >> so, here's the cbo report senator sanders is quoting. the part is not a huge part of it,

i've heard a number of conservatives, pat toomey, others, saying that silicon valley bank failed because of an old-fashion run on the bank. there wasn't any other particular reason. they disagree with joe biden and others who say that deregulation in 2018 played a role. what is to explain, if it's an old fashion run on the bank for silicon valley bank, what is to explain these larger fears about the industry in general? >> it's not just one bank. the whole system is under a lot of pressure, jake. interest rates rose dramatically, which means that banks that had long-term government assets, those assets fell in value. and short-term deposits cost more. so what you have is your income is being reduced and your expenses are being increased and it just flipped over. silicon valley, from what i understand, just got caught in the rise in interest rates and flipped the bank over. a lot of financial institutions are facing this problem. what surprises me is that the regulators at the san francisco fed, the supervisor, the supervisory group didn't catch it and didn't understand their balance shee