Federal Reserve ‘Asleep at the Wheel’ in Banking Crisis: Senate Republicans
The Federal Reserve failed to use the tools at its disposal and was late in responding to the banking crisis, according to Senate Republicans.
The U.S. Senate Banking, Housing, and Urban Affairs Committee held a hearing on Tuesday with Fed Vice Chair for Supervision Michael Barr, Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg, and Treasury Undersecretary for Domestic Finance Nellie Liang.
Republican lawmakers blamed federal regulators for allowing the failures of Silicon Valley Bank (SVB) and Signature Bank to occur in the first place, citing Barr’s testimony of spotting cracks in these financial institutions as early as 2021.
“Our regulators appear to have been asleep at the wheel,” said Sen. Tim Scott (R-S.C.)….