RELEASE: Gottheimer Questions Federal Regulators’ Response to Recent Bank Failures
Demanding Answers on Regulators’ Failure to Properly Oversee Silicon Valley Bank
WASHINGTON, D.C. — This week, U.S. Congressman Josh Gottheimer (NJ-5) questioned the Federal Reserve, U.S. Treasury Department, and the Federal Deposit Insurance Corporation (FDIC) over federal financial regulators’ failure to properly oversee Silicon Valley Bank (SVB).
During this week’s House Financial Services Committee hearing, Gottheimer questioned witnesses about the speed and intensity of the run on SVB driven by panic on social media, as well as financial regulators’ failure to apply annual stress tests, to properly utilize supervisory tools and reviews, and to identify the failures of bank management.
Watch Gottheimer’s questioning here.
Gottheimer questioned Nellie Liang, the Under Secretary for Domestic Finance for the U.S. Department of Treasury; Martin J. Gruenberg, the Chairman of the Board of Directors of the Federal Deposit Insurance Corporation (FDIC), and Michael S. Barr, the Vice Chair for Supervision of the Board of Governors of the Federal Reserve.
Gottheimer recently called on House Financial Services Committee Chairman McHenry and Ranking Member Waters to conduct a comprehensive bipartisan investigation into financial regulators’ failure to properly oversee SVB.