They ask why there was no federal response to the warning signs ahead of the bank’s collapse.
The Senate Banking Committee pressed banking regulators on their failure to address the clear warning signs leading up to the closure of Silicon Valley Bank (SVB).
“For over a year, regulators were saying to this bank, ‘straighten up and fly right,’” Sen. Jon Tester (D-Mont.) said to members of the Federal Reserve, asking why they did nothing to address the bank’s failures. “You did not have to be an accountant to figure out what… was going on here.”
In the wake of SVB’s failure on March 10, legislators and banking experts came to a quick consensus that the bank’s sudden closure was due to widespread internal incompetence and mismanagement. The Federal Reserve is conducting their own internal investigation into the matter, and lawmakers pushed the leadership body to hold themselves accountable if the evidence shows it is necessary.
As the Lord Leads, Pray with Us…
- For this Senate committee as they do the work of democracy in their hearings and meetings.
- That the Federal Reserve takes the input of the committee seriously in their internal investigations.
- That administration leaders work to hold themselves accountable in the wake of clear failure.
Sources: The Hill, AP News, NBC News
