Democrat Warren, who is pushing for tighter banking regulations,
sent a letter to the inspectors general of the U.S. Treasury
Department, the Federal Deposit Insurance Corp (FDIC) and the
Federal Reserve on Sunday, urging regulators to examine the
recent management and oversight of the banks which collapsed
earlier this month.
California regulators shuttered Silicon Valley Bank on March 10
and appointed FDIC as receiver. It was the largest U.S. bank
collapse since Washington Mutual went bust during the financial
crisis of 2008. On Friday, the bank's parent, SVB Financial
Group, said it filed for Chapter 11 bankruptcy protection.
U.S. prosecutors are investigating the SVB collapse, a source
familiar with the matter told Reuters last week.
Warren also said on Sunday she does not have faith in San
Francisco Federal Reserve President Mary Daly in the wake of
"No, I do not," Warren said on CBS's "Face the Nation" when
asked if she has faith in Daly.
Financial stocks lost billions of dollars in value since Silicon
Valley Bank and Signature Bank collapsed this month. President
Joe Biden said on Friday the banking crisis has calmed down. He
also promised Americans that their deposits are safe.
The inspectors general for the Treasury, Fed, and FDIC should
deliver a preliminary report to Congress in 30 days, Warren said
in her letter.
"The bank's executives, who took unnecessary risks or failed to
hedge against entirely foreseeable threats, must be held
accountable for these failures. But this mismanagement was
allowed to occur because of a series of failures by lawmakers
and regulators," she wrote in the letter.
She also criticized Federal Reserve Chair Jerome Powell in her
"Remember the Federal Reserve Bank and Jerome Powell are
ultimately responsible for the oversight and supervision of
these banks. And they have made clear that they think their job
is to lighten regulations on these banks. We've now seen the
consequences," Warren said.
(Reporting by Kanishka Singh in Washington and Rishabh Jaiswal
in BengaluruEditing by Frances Kerry and Matthew Lewis)
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