U.S. lawmakers are planning back-to-back hearings next week with top financial regulators on the failures of Silicon Valley Bank and Signature Bank, as Congress mulls potential next steps regarding the industry.
FDIC Chair Martin Gruenberg, Federal Reserve Vice Chair of Supervision Michael Barr and Treasury Under Secretary for Domestic Finance Nellie Liang will appear on Tuesday before the Senate Banking Committee and on Wednesday before the House Financial Services Committee.
“The American public deserves answers,” said Banking Committee Chair Sherrod Brown, an Ohio Democrat, in a statement. “We need to begin these hearings to understand these bank failures and next steps to make sure this never happens again.”
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In a joint statement, Rep. Patrick McHenry, the North Carolina Republican who leads the panel, and Rep. Maxine Waters of California, its top Democrat, said: “The House Financial Services Committee is committed to getting to the bottom of the failures of Silicon Valley Bank and Signature Bank.”
Regulators stepped in earlier this month to guarantee uninsured deposits at Silicon Valley Bank and Signature Bank
SBNY,
after a run on deposits forced the government to take them into receivership.
Speaking to a banking group on Tuesday, Treasury Secretary Janet Yellen vowed more U.S. support for small bank depositors if needed, but said that the banking situation is “stabilizing.”
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