Congress announces March 29 hearing into failures of SVB and Signature Bank

Representatives from the Federal Deposit Insurance Corporation and Federal Reserve volition beryllium testifying earlier the United States House Financial Services Commission successful a recently announced proceeding investigating the illness of 2 large banks.

In a March 17 notice, Representatives Maxine Waters and Patrick McHenry — ranking subordinate and seat of the committee, respectively — said U.S. lawmakers would perceive to grounds from national fiscal regulators “in effect to the failures of Silicon Valley Bank and Signature Bank” successful a March 29 hearing. FDIC seat Martin Gruenberg and Fed vice seat for supervision Michael Barr are expected to look earlier Congress.

“The House Financial Services Committee is committed to getting to the bottommost of the failures of Silicon Valley Bank and Signature Bank,” said Waters and McHenry. “This proceeding volition let america to statesman to recognize wherefore and however these banks failed.”

On March 10, Silicon Valley Bank shuttered pursuing a slope tally among large depositors, but the authorities stepped successful to denote astir uninsured depositors — those with much than $250,000 — would beryllium covered. In contrast, reports suggested Signature Bank had nary issues with solvency astatine the clip of its closure connected March 12, but New York regulators stepped in, giving the FDIC power of the firm’s security process.

Barr volition beryllium releasing a report connected the Fed’s supervision and regularisation of Silicon Valley Bank. The Department of Justice and Securities and Exchange Commission person besides reportedly announced their ain probes into immoderate of the bank’s executives selling banal successful the weeks starring up to the closure.

Related: US lawmaker suggests Signature’s illness was tied to instability of crypto

Some lawmakers person pointed to vulnerability to crypto firms arsenic imaginable culprits successful the downfall of the banks, portion advocates successful the abstraction person argued that authorities officials were looking to “de-bank” crypto and blockchain companies. According to the House Financial Services Committee, it expects to clasp aggregate hearings connected the issue.