U.S. Senator Elizabeth Warren has called for a “thorough, independent investigation of the causes” that led to the failure of Silicon Valley Bank (SVB) and Signature Bank. She alleges that Federal Reserve Chairman Jerome Powell “bears direct responsibility” for regulatory and supervisory issues involving the two banks.
Senator Elizabeth Warren Calls for Independent Investigation Into Bank Failures
U.S. Senator Elizabeth Warren (D-MA) called for an investigation into the recent collapse of major banks in a March 18 letter to the Treasury Department’s deputy inspector general, the Federal Deposit Insurance Corporation (FDIC)’s acting inspector general, and the Federal Reserve Board’s inspector general.
“I am writing to ask that you immediately open a thorough, independent investigation of the causes of the bank management and regulatory and supervisory problems that resulted in this month’s failure of Silicon Valley Bank (SVB) and Signature Bank and deliver preliminary results within 30 days,” the senator from Massachusetts wrote. SVB was closed down by regulators on March 10 while Signature Bank was seized by the New York State Department of Financial Services a couple of days later.
Warren stressed:
These failures were…
