US Congress to Hold Hearing on Silicon Valley Bank and Signature Bank Failures
On March 29, the United States House Financial Services Commission held a hearing to investigate the collapse of Silicon Valley Bank and Signature Bank.
In response to these failures, the committee called upon Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve representatives to testify before Congress.
#NEW: Chairman @PatrickMcHenry and Ranking Member @RepMaxineWaters announce a bipartisan hearing with federal financial regulators in response to the failures of #SVB and Signature Bank to be held on March 29, 2023.
👇 Read the full release 🔗 https://t.co/UFEpzBzJLX pic.twitter.com/0cqWkHE2K3
— Financial Services GOP (@FinancialCmte) March 17, 2023
FDIC chair Martin Gruenberg and Fed Vice Chair for Supervision Michael Barr are among the financial regulators who will testify at the hearing. The House Financial Services Committee, chaired by Representative Patrick McHenry, is committed to understanding the reasons behind the banks’ failures.
Silicon Valley Bank collapsed on March 10, 2023, following a bank run among major depositors. While the government covered most uninsured depositors with more than $250,000, the bank’s closure has sparked a wider investigation into the reasons behind its collapse.
In contrast, Signature Bank reportedly had no solvency issues at the time of its closure on March 12, 2023. However, New York regulators intervened, giving the FDIC control of the firm’s insurance process. It is unclear what led to this action, but it is expected to be explored further during future hearings.
Lawmakers have raised concerns about the exposure of these banks to cryptocurrency firms, suggesting that this may have contributed to their downfall. However, advocates for the crypto industry have argued that government officials were seeking to “de-bank” crypto and blockchain companies.
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Michael Barr is expected to release a report on the Fed’s supervision and regulation of Silicon Valley Bank.
Meanwhile, the Department of Justice and Securities and Exchange Commission have reportedly launched their own probes into some of the bank’s executives selling stock in the weeks leading up to the closure.
The House Financial Services Committee has indicated that it plans to hold multiple hearings on the issue. Hopefully, these hearings will shed light on the causes of the banks’ failures and help prevent similar collapses in the future.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
