Lawmakers in the House hold the first hearing on bank bankruptcies

  • The House Financial Services Committee has announced that its first hearing on the failures of SVB and Signature Bank will be held on March 29.
  • Martin J. Gruenberg, chairman of the FDIC, and Michael S. Barr, vice chairman for oversight of the Federal Reserve Board of Governors, are scheduled to testify.
  • The committee’s announcement follows President Joe Biden’s request to Congress to allow regulators to recover compensation from failed bank executives.

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WASHINGTON – The House Financial Services Committee on Friday announced its first hearing on the failures of Silicon Valley Bank and Signature Bank.

FDIC Chairman Martin J. Gruenberg and Federal Reserve Board Oversight Vice Chairman Michael S. Barr are scheduled to testify at the March 29 hearing. More witnesses may be added, the committee said in a statement.

The announcement followed President Joe Biden’s call to Congress on Friday to give financial regulators more power to recover damages from failed bank executives.

The Federal Deposit Insurance Corporation seized SVB’s deposits on March 10 after the bank’s executives received bonuses. Regulators shut down cryptocurrency-focused Signature Bank on Sunday to curb systemic risk.

Committee Chairman Patrick McHenry, RN.C., and member Maxine Waters, D-Calif., said House Financial Services is “committed to addressing bank failures.”

“With this hearing, we can begin to understand why and how these banks failed,” the lawmakers said. “As chairman and as a member, we take our oversight role seriously. We are working around the clock to provide answers to the American people to protect depositors, promote the safety and soundness of America’s banks, and strengthen our financial system. Conduct this hearing without fear or favor to get the answers Americans deserve.”

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