Senators Ask Powell If the Fed Had Been Lax in Supervising Failed SVB Bank
Members of the Senate Banking Committee wrote to Federal Reserve chairman Jerome Powell if he and his fellow board members were lax in supervising Silicon Valley Bank (SVB), which failed earlier this month.
Five senators sent a letter to Powell on March 27, which was obtained by Bloomberg, questioning whether the central bank exercised its full legal authority to oversee Silicon Valley Bank and other regional lenders.
The bipartisan group of lawmakers included senators Bob Menendez (D-N.J.), Mike Rounds (R-S.D.), Catherine Cortez Masto (D-Nev.), Thom Tillis (R-N.C.), and Cynthia Lummis (R-Wy.).
This comes as the nation’s top bank regulators spoke in front of the Senate committee for its first hearing on March 28 to explain how the collapses of Silicon Valley Bank and Signature Bank were allowed to happen overnight in early March….