- The House Financial Services Committee has announced that the first hearing on the bankruptcies of SVB and Signature Bank will take place on March 29.
- Martin J. Gruenberg, chairman of the board of directors of the FDIC, and Michael S. Barr, vice chairman for oversight of the board of directors of the Federal Reserve, will testify.
- The commission’s announcement follows President Joe Biden’s request to Congress to allow regulators to recover compensation from bankrupt bank executives.
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WASHINGTON — The House Financial Services Committee announced Friday its first hearing on the bankruptcy filings of Silicon Valley Bank and Signature Bank.
Martin J. Gruenberg, chairman of the FDIC board of directors, and Michael S. Barr, vice chairman for oversight of the Federal Reserve board of directors, will testify at the March 29 hearing. More witnesses may be added, the committee said in a statement.
The announcement follows President Joe Biden’s request to Congress on Friday to give financial regulators more power to recover fees from executives at bankrupt banks.
The Federal Deposit Insurance Corporation seized the SVB’s deposits March 10, 10 hours after the bank’s executives received bonuses. Regulators shut down the cryptocurrency-focused Signature Bank on Sunday to contain a systemic risk.
Committee Chair Patrick McHenry, RN.C., and Ranking Member Maxine Waters, D-Calif., said House Financial Services is “committed to getting to the bottom of bank failures.”
“This hearing will allow us to understand why and how these banks failed,” lawmakers said. “As chairman and ranking member, we take our oversight duties seriously. We work around the clock to provide answers to the American people to protect depositors, promote the safety and soundness of U.S. banks, and strengthen our financial system. We will perform this hearing without fear or favor to get the answers the American people deserve.”
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