House lawmakers to hold first hearing on bank failures

House lawmakers to hold first hearing on bank failures

Bloomberg | Bloomberg | Getty Images

WASHINGTON — The House Financial Services Committee announced its first hearing on Friday on the failure 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 Board of Directors of the Federal Reserve, are scheduled to testify at the March 29 hearing. More witnesses could be added, the committee said in a statement.

The announcement follows President Joe Biden’s call for Congress on Friday to give financial regulators more powers to recover compensation from executives of failed banks.

The Federal Deposit Insurance Corporation seized SVB deposits in March 10 hours after bank executives received bonuses. Regulators on Sunday shut down the cryptocurrency-focused signature bank in a bid to curb 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 banks’ failures.”

“This hearing will allow us to understand why and how these banks failed,” lawmakers said. “As Chairman and Ranking Member, we take our supervisory duties seriously. We work around the clock to provide the American people with answers to protect depositors, keep America’s banks safe and sound, and strengthen our financial system. We will conduct this hearing without fear or favoritism to get the answers the American people deserve.”