{"id":567819,"date":"2023-03-28T22:32:42","date_gmt":"2023-03-28T19:32:42","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/lawmakers-slam-regulators-following-silicon-valley-bank-failure\/"},"modified":"2023-03-28T22:32:42","modified_gmt":"2023-03-28T19:32:42","slug":"lawmakers-slam-regulators-following-silicon-valley-bank-failure","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/lawmakers-slam-regulators-following-silicon-valley-bank-failure\/","title":{"rendered":"#Lawmakers slam regulators following Silicon Valley Bank failure"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35fe2a736e7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35fe2a736e7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/lawmakers-slam-regulators-following-silicon-valley-bank-failure\/#No_sign_of_failed_bank_leaders\" >No sign of failed bank leaders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/lawmakers-slam-regulators-following-silicon-valley-bank-failure\/#What_will_Congress_do\" >What will Congress do?<\/a><\/li><\/ul><\/nav><\/div>\n<div>\n<p>Lawmakers raked banking regulators at the Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation (FDIC) over the coals during a hearing of the Senate Banking Committee on Tuesday after the agencies failed to act on signs that Silicon Valley Bank (SVB) was in trouble, mobilizing instead to bail out depositors after it had collapsed.<\/p>\n<p>While Democrats argued for stronger legislation on the banking industry and Republicans focused on lapses in regulatory practice, it was the regulators themselves who bore the brunt of the criticism from both parties.<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>\u201cFor over a year, regulators were saying to this bank, \u2018straighten up and fly right,\u2019 and they never did a damn thing about it,\u201d Sen. Jon Tester (D-Mont.) said. \u201cYou did not have to be an accountant to figure out what the hell was going on here.\u201d<\/p>\n<p>\u201cIf you find as part of your review that certain individuals were clearly negligent in the performance of their duties, are you willing to recommend they be fired?\u201d Sen. Steve Daines (R-Mont.) asked Fed Vice Chair for Supervision Michael Barr, who is currently leading an investigation into SVB\u2019s collapse and why regulators weren\u2019t able to stop it.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"No_sign_of_failed_bank_leaders\"><\/span>No sign of failed bank leaders<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1400\" height=\"787\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/AP23073743695968-e1679512547105.jpg?w=900\" alt=\"\" class=\"wp-image-3912893\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/AP23073743695968-e1679512547105.jpg 1400w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/AP23073743695968-e1679512547105.jpg?resize=876,492 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><sub>A sign for a Silicon Valley Bank private branch is displayed in San Francisco, Tuesday, March 14, 2023. The recent failure of the Silicon Valley Bank was unlike a traditional bank run. It involved <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>, internet memes and message boards and h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened at unprecedented speed. (AP Photo\/Jeff Chiu)<\/sub><\/figcaption><\/figure>\n<p>The CEO of the failed SVB, Greg Becker, who was also a board member of the San Francisco Federal Reserve, did not appear before the Senate Banking Committee on Tuesday despite widespread agreement that the bank failed due to incompetent management.<\/p>\n<p><strong>The backstory: FDIC spent $20 billion to handle Silicon Valley Bank collapse<\/strong><\/p>\n<p>The issue of why bank bosses should be allowed to serve on the boards of regulatory bodies that have authority over them went largely unaddressed, although there is <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sanders.senate.gov\/press-releases\/news-after-silicon-valley-bank-collapse-sanders-introduces-legislation-to-prevent-big-bank-executives-from-serving-on-federal-reserve-boards\/\">newly proposed legislation<\/a> to prohibit this.<\/p>\n<p>The blame <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> over the collapse of SVB and the bailout of its depositors \u2014 well above the standard $250,000 FDIC insurance limit \u2014 is playing out over the expanse of the U.S. financial system, with lawmakers blaming regulators, regulators blaming bankers, and bankers blaming the herd mentality of bank runs supercharged by social media.<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<h2><span class=\"ez-toc-section\" id=\"What_will_Congress_do\"><\/span>What will Congress do?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1400\" height=\"787\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?w=900\" alt=\"Senate Banking, Housing, and Urban Affairs Committee Chairman Sherrod Brown (D-Ohio) speaks with Sen. Tim Scott (R-S.C.)\" class=\"wp-image-3922041\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg 1400w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=160,90 160w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=300,169 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=768,432 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=1280,720 1280w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=645,363 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=320,180 320w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=256,144 256w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=512,288 512w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=640,360 640w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=876,492 876w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=960,540 960w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/brownsherrod_scotttim_032823gn01_w.jpg?resize=50,28 50w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><sub>Senate Banking, Housing, and Urban Affairs Committee Chairman Sherrod Brown (D-Ohio) speaks with Sen. Tim Scott (R-S.C.) during hearing on Tuesday, March 28, 2023 to discuss the recent bank failures of Silicon Valley Bank and Signature Bank along the federal response.<\/sub><\/figcaption><\/figure>\n<p>The legislative response to the latest bank collapses is still evolving, but Democrats led by Sen. Elizabeth Warren (D-Mass.) have been arguing for the restitution of the Dodd-Frank Act enacted in the aftermath of the 2008 global financial crisis that was scaled back during the Trump administration in 2018.<\/p>\n<p>\u201cChair Gruenberg, will you commit to using your authority to undo the rollbacks that your predecessor initiated and to strengthen the rules and supervision for banks with greater than $100 billion in assets?\u201d Sen. Warren asked FDIC Chair Martin Gruenberg on Tuesday, referring to more recent banking regulations that were loosened in regard to mid-sized banks.<\/p>\n<p>\u201cI certainly think it\u2019s appropriate for us to go back and review those actions in light of the recent episode,\u201d Gruenberg responded.<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>Warren has legislation that would subject banks of the size of SVB to stricter regulations in the form of greater capital and liquidity requirements.<\/p>\n<p><strong>The progressive firebrand: Warren takes center stage in banking fight after SVB collapse\u00a0<\/strong><\/p>\n<p>\u201cIn 2018, I rang the alarm bell about what would happen if Congress rolled back critical Dodd-Frank protections: banks would load up on risk to boost their profits and collapse, threatening our entire economy \u2013 and that is precisely what happened,\u201d Warren said in a statement earlier this month.<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>The question of whether all U.S. bank deposits are now implicitly backstopped by the FDIC \u2014 and by extension the U.S. taxpayer \u2014 in the same way they were for SVB along with Signature Bank was also raised during the hearing.<\/p>\n<p>\u201cThe decision to cover uninsured depositors at these two institutions was a highly consequential one,\u201d Gruenberg said. \u201cBy May 1, we\u2019ll deliver a report including policy considerations to take that into account.\u201d<\/p>\n<p>\u201cWhen we were looking at the systemic risk determination with respect to these institutions, we were thinking about the risks to the broader financial system, not the particular depositors,\u201d Barr said.<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p><strong>The proposals: Banking legislation piles up as wobbly market evolves<\/strong><\/p>\n<p>Republican Sen. J.D. Vance (R-Ohio), himself a former venture capitalist, argued for expanding the FDIC\u2019s implied insurance policy \u2013 which he said should be considered a bailout \u2013 across the banking industry.<\/p>\n<p>\u201cWhat I\u2019d like you guys to consider doing is extending the same implied offer that you gave to the Silicon Valley Bank uninsured depositors, to do it a little bit further down the banking ladder so that everybody benefits from the rule that you guys have created for Silicon Valley Bank,\u201d he said.<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>Public sector bank bailouts for badly managed banks are very unpopular among Americans.<\/p>\n<p>\u201c84 percent of Americans agree \u2014 56 percent agree strongly \u2014 that taxpayers should not have to foot the bill for irresponsible bank management, including 85 percent of Democrats and 86 percent of Republicans,\u201d a recent poll by Ipsos found.<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/business\/3922479-lawmakers-slam-regulators-following-silicon-valley-bank-failure\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lawmakers raked banking regulators at the Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation (FDIC) over the coals during a hearing of the Senate Banking Committee on Tuesday after the agencies failed to act on signs that Silicon Valley Bank (SVB) was in trouble, mobilizing instead to bail out depositors after it had collapsed&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":567820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/barrmichael_032823gn07_w.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[141883,117,134353,77105,134420,141430,70550,90482,133498,124783,141884,141885,141178,4965],"class_list":["post-567819","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-2023-banking-crisis","tag-business","tag-court-battles","tag-elizabeth-warren","tag-equilibrium-sustainability","tag-federal-deposit-insurance-corporation","tag-federal-reserve","tag-house","tag-in-the-know","tag-international","tag-martin-gruenberg","tag-michael-barr","tag-silicon-valley-bank","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/567819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=567819"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/567819\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/567820"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=567819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=567819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=567819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}