WASHINGTON — The Senate Banking Committee will host a hearing on the collapse of Silicon Valley Bank and Signature Bank next Tuesday, which will be the first time federal regulators have answered questions publicly on the collapse of the two banks and the regulatory response.
The panel will hear from Federal Deposit Insurance Corp. Chairman Martin Gruenberg, Under Secretary for Domestic Finance at the Treasury Department Nellie Liang and Federal Reserve Vice Chair of Supervision Michael Barr. The regulators will also testify a day later in
"My job is oversight, and we need to begin these hearings to understand these bank failures and next steps to make sure this never happens again," said Senate Banking Committee Chair Sherrod Brown, D-Ohio.
While a number of lawmakers have called for changes to deposit insurance and tougher legislation around midsize banks, it's likely that in a divided Congress, there's still little legislation that could make it to President Joe Biden's desk.
Brown has
Republicans have mostly rejected calls to toughen bank regulation, arguing that it's mostly been a failure of supervision, rather than lax regulation, that caused the collapse of Silicon Valley Bank.
Sen. Steve Daines, R-Mont., for example, told a group of assembled bankers at the American Bankers Association Washington Summit on Tuesday that
S. 2155 — a law that has come under scrutiny for allowing regulators to loosen rules around midsize banks — wasn't to blame for the failure at Silicon Valley Bank, and that more regulation isn't warranted. Instead, Republicans are
