Progressive lawmakers say the collapse of Silicon Valley Bank (SVB) was a predictable outcome following ex-Pres. Donald Trump’s rollback of a number of banking regulations that had been enacted by Democrats in 2018.

SVB, which catered to the Silicon Valley tech industry and other startups for decades, was forced to shut down on Friday after a massive bank run by high-dollar depositors left SVB without enough money to cash out deposits - 90 percent of which exceeded the $250,000 federally insured limit.

Monday, Pres. Joe Biden assured customers of SVB and Signature Bank, which was shut down by regulators Sunday, that their deposits are safe and that they would get their money without any burden to taxpayers, but that funds would be covered through bank fees.

Biden further said that the managers of SVB and Signature banks would be fired and that he would not protect bank investors. “They knowingly took a risk and when the risk didn’t pay off, investors lose their money. That’s how capitalism works,” said Biden.

Rep. Ro Khanna (D-CA) whose district covers Silicon Valley told TYT that he agrees with Biden that the banks’ investors shouldn’t be protected.

“What the FDIC and Treasury have done is step in to ensure that depositors have access to their money and workers will get paid. And it doesn't cost taxpayers a dime. Now, we need new banking regulations to avoid future instability,” said Khanna.

In an op-ed published by the New York Times, Sen. Elizabeth Warren (D-MA) said that SVB’s failure is “the direct result of leaders in Washington weakening the financial rules.”

Rep. Pramila Jayapal (D-WA), Chair of the Congressional Progressive Caucus, said in a statement that the collapse of SVB “is the predictable and direct outcome of a furious 2018 effort by bank lobbyists to evade basic oversight, transparency, and financial stability in favor of profit.”

As Warren pointed out in her op-ed, one of those banking lobbyists pushing for weaker banking regulation five years ago was Silicon Valley Bank CEO Greg Becker. That effort went a step further when SVB lobbyists, two of whom used to work for now-Speaker Kevin McCarthy (R-CA), pushed the Federal Deposit Insurance Corporation (FDIC) to shield SVB and other banks of similar size, from being subjected to “stress tests” to identify weaknesses that would’ve prevented Friday’s collapse, as reported by The Intercept.

Warren writes that Wall Street executives spent millions to overturn the Dodd-Frank law, which became law following the 2008 financial crisis to “ensure that big banks could never again take down the economy.”

The Obama-era Dodd-Frank legislation, which established the Consumer Financial Protection Bureau and ended too-big-to-fail bailouts, was essentially gutted under Trump according to progressives, ending consumer protections and weakening regulations for over half of the nation’s largest banks.

Warren writes that she warned that weakening banking regulations would enable banks to take greater risks and potentially put consumers in danger just so the C.E.O.s of these banks can get a new corporate jet and add another floor to their new corporate headquarters.”

“I wish I’d been wrong. But on Friday, SVB executives were busy paying out congratulatory bonuses hours before the Federal Deposit Insurance Corporation rushed in to take over their failing institution -- leaving countless businesses and nonprofits with accounts at the bank alarmed that they wouldn’t be able to pay their bills and employees,” wrote Warren.

Now, in the wake of the SVB fallout, progressives are calling for those 2018 rollbacks to be reinstated.

Khanna, who called on Biden to take “decisive action,” said in a statement over the weekend, “We’ve known since 2008 that stronger regulations are needed to prevent exactly this type of crisis. Congress must come together to reverse the deregulation policies that were put in place under Trump to avert future instability.”

Along with letting consumers know that their “deposits are safe” Biden announced that the FDIC has since taken control of SVB and that a federal investigation would be underway to find out “what happened and why.” Biden also said that he would ask Congress and banking regulators to strengthen banking rules to prevent more bank failures in the future.

TYT Washington Correspondent Candice Cole was previously a correspondent and senior White House producer for the Black News Channel and has worked at a number of local news outlets. You can find her on Twitter @CandiceColeNews.