Scott, McHenry Demand Answers from Regulators on SVB and Signature Bank
Washington, D.C. – The Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, Tim Scott (R-S.C.), and the Chairman of the House Financial Services Committee, Patrick McHenry (R-N.C.), are formally demanding information from the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) regarding their regulatory activities with respect to Silicon Valley Bank (SVB) and Signature Bank for the two years leading up to the collapse of these two banks. The pair of lawmakers are also requesting that the Federal Reserve and FDIC preserve all records, future and existing, related to this matter.
The two Republican leaders of the committees of jurisdiction noted that, as part of their oversight responsibilities, they intend to bring transparency to what regulators knew, when they knew it, and why they did not act earlier to stop these bank failures from transpiring.
“Our oversight responsibilities to the American people require that we evaluate the root causes of these bank failures as well as the failures of U.S. regulatory agencies to prevent these collapses from occurring. These responsibilities include obtaining full information about what appears to be glaring bank mismanagement, fundamental lack of prudence in bank risk and balance sheet management, and regulators’ lack of basic supervision and enforcement of safety and soundness rules, regulations, and principles,” wrote Ranking Member Scott and Chairman McHenry.
Read the full letters here and here.
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