U.S. Senator Demands Review Into Silicon Valley Bank and Signature Bank Failures

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Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, U.S. Sen. Sherrod Brown (D-OH), sent a letter Thursday to the Treasury Department, the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve requesting a comprehensive review of the failures of Silicon Valley Bank (SVB)  and Signature Bank.

“In the course of the reviews and resolutions of these bank failures, I urge you to: Consider the magnitude of the banks’ uninsured deposits and the role that social media-led coordination among customers played in causing or accelerating the failures; Identify and close regulatory gaps, shortfalls, or failures by state or federal regulators that contributed to the banks’ failures, including with respect to capital, liquidity, stress testing, concentration risk, and risk management; Hold those responsible for these bank failures accountable for their actions, including by clawing back executive bonuses and compensation and taking other appropriate regulatory actions to hold these banks’ executives accountable,” wrote Brown.“Finally, you must strengthen the guardrails for banks to prevent failures and mitigate contagion and panic risks to protect consumers and small businesses and to preserve small banks and credit unions on Main Street.”

Brown released a statement on Sunday with House Financial Services Committee Ranking Member Maxine Waters urging regulators to continue to keep the banking system stable and strong.

A copy of the letter is available here.

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