Washington, D.C. – U.S. Senator Daines joined Banking Committee Republicans, including Ranking Member Tim Scott (R-SC) today in demanding answers and seeking records from the Federal Reserve Board of Governors and the Federal Reserve Bank of San Francisco regarding their supervision of Silicon Valley Bank (SVB) in the leadup to its failure. Daines and his fellow Banking Committee Republicans are striving to deliver transparency and accountability for the American people, an effort they will continue on Tuesday as regulators testify before the Senate Banking Committee. In a letter to Jerome Powell, Chairman of the Federal Reserve and Mary Daly, President and CEO of the Federal Reserve Bank of San Francisco, the Senators write:
“In sum, a number of warning signs existed at SVB in the months and years leading up to its closure, and per reports, these ‘risky practices were on the Federal Reserve’s radar for more than a year—an awareness that proved insufficient to stop the bank’s demise.’ Rather than effectively directing SVB management to take definitive, corrective action, it is apparent that the Federal Reserve supervisors and examiners neglected to intervene in a meaningful, appropriate way to rectify the bank’s deficiencies, ensure safe and sound operations, and prevent its ultimate failure,” the Senators wrote.
“The American people deserve transparency and accountability from their government officials, and they are entitled to understand precisely what Federal Reserve officials knew about the apparent risks associated with SVB, when they knew it, and why they failed to act to prevent the bank failure from occurring,” the Banking Committee Republicans continued.
The letter was signed by Senate Banking Committee Ranking Member Tim Scott (R-S.C.) and Senators Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), John Kennedy (R-La.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), J.D. Vance (R-Ohio), Katie Britt (R-Ala.) and Kevin Cramer (R-N.D.). The Senators requested a response no later than April 6, 2023.
Read the full letter HERE.