Representatives from the Federal Deposit Insurance coverage Company and Federal Reserve shall be testifying earlier than america Home Monetary Companies Fee in a newly introduced listening to investigating the collapse of two main banks.
In a March 17 discover, Representatives Maxine Waters and Patrick McHenry — the rating member and chair of the committee, respectively — said U.S. lawmakers would take heed to testimony from federal monetary regulators “in response to the failures of Silicon Valley Financial institution and Signature Financial institution” in a March 29 listening to. FDIC chair Martin Gruenberg and Fed Vice Chair for Supervision Michael Barr are anticipated to seem earlier than Congress.
“The Home Monetary Companies Committee is dedicated to attending to the underside of the failures of Silicon Valley Financial institution and Signature Financial institution,” mentioned Waters and McHenry. “This listening to will enable us to start to grasp why and the way these banks failed.”
#NEW: Chairman @PatrickMcHenry and Rating Member @RepMaxineWaters announce a bipartisan listening to with federal monetary regulators in response to the failures of #SVB and Signature Financial institution to be held on March 29, 2023.
Learn the complete launch https://t.co/UFEpzBzJLX pic.twitter.com/0cqWkHE2K3
— Monetary Companies GOP (@FinancialCmte) March 17, 2023
On March 10, Silicon Valley Financial institution shuttered following a financial institution run amongst main depositors, however the authorities stepped in to announce most uninsured depositors — these with greater than $250,000 — could be lined. In distinction, experiences urged Signature Financial institution had no issues with solvency on the time of its closure on March 12, however New York regulators stepped in, giving the FDIC management of the agency’s insurance coverage course of.
Barr shall be releasing a report on the Fed’s supervision and regulation of Silicon Valley Financial institution. The Division of Justice and Securities and Trade Fee have additionally reportedly announced their own probes into a number of the financial institution’s executives promoting inventory within the weeks main as much as the closure.
Associated: US lawmaker suggests Signature’s collapse was tied to instability of crypto
Some lawmakers have pointed to publicity to crypto corporations as potential culprits within the downfall of the banks, whereas advocates within the area have argued that government officials have been trying to “de-bank” crypto and blockchain firms. The Home Monetary Companies Committee says it expects to carry a number of hearings on the difficulty.
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