Senate Banking Committee announces hearing in Silicon Valley Bank collapse
Silicon Valley Bank – the nation’s 16th-largest bank, failed on March 10 after depositors hurried to withdraw money amid anxiety over the bank’s health
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The Senate Committee on Banking, Housing and Urban Affairs will hold a hearing next week on the collapse of Silicon Valley Bank.
Senate Banking Committee Chairman Sherrod Brown on Tuesday announced the first of what are expected to be several hearings.
FILE: Senate Banking Committee Chairman Sherrod Brown, D-Ohio, takes questions from reporters outside the chamber during votes, at the Capitol in Washington, March 15, 2023. (AP Photo/J. Scott Applewhite / AP Newsroom)
In a statement, Sen. Brown said it was critical to understand how Silicon Valley Bank and Signature Bank collapsed earlier this month, and hold those responsible "including CEOs."
"The American public deserves answers, which is why I am calling on our financial regulators to testify before the Banking and Housing Committee at a hearing on March 28," Brown said. "My job is oversight, and we need to begin these hearings to understand these bank failures and next steps to make sure this never happens again."
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Brown’s office said the first of several hearings will feature Martin Gruenberg, Chair of the Federal Deposit Insurance Corporation (FDIC), Michael Barr, Vice Chair of Supervision at the Federal Reserve, and Nellie Liang, Under Secretary for Domestic Finance at the U.S. Treasury Department.
Silicon Valley Bank – the nation’s 16th-largest bank, failed on March 10 after depositors hurried to withdraw money amid anxiety over the bank’s health. It was followed by the demise of Signature Bank. They were the second- and third-largest U.S. bank failures in history.
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Regulators said all depositors at both banks – including those holding uninsured funds, those exceeding $250,000 – would be protected by federal deposit insurance.
FILE: A woman leaves a branch of Signature Bank in New York, Monday, March 13, 2023. (AP Photo/Seth Wenig / AP Newsroom)
The following week, San Francisco-based Republic Bank, was fortified by $30 billion in funds raised by 11 of the biggest U.S. banks to prevent it from collapsing.
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The federal government is now determined to restore the public’s trust in the banking system and prevent further turmoil. The Justice Department and Securities and Exchange Commission have launched investigations into the Silicon Valley Bank collapse. President Joe Biden has called on Congress to strengthen rules on regional banks and to impose tougher penalties on executives of failed banks.
The Associated Press contributed to this report.