Representatives from the Federal Deposit Insurance coverage Company and Federal Reserve will probably be testifying earlier than the US Home Monetary Providers 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 — mentioned U.S. lawmakers would hearken 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 look earlier than Congress.
“The Home Monetary Providers 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 know 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 Providers 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, stories advised Signature Financial institution had no points 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 will probably be releasing a report on the Fed’s supervision and regulation of Silicon Valley Financial institution. The Division of Justice and Securities and Change Fee have additionally reportedly introduced their very 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 companies as potential culprits within the downfall of the banks, whereas advocates within the house have argued that authorities officers had been trying to “de-bank” crypto and blockchain firms. The Home Monetary Providers Committee says it expects to carry a number of hearings on the problem.