Posted on Mar 28, 2023
5 things we learned from the Senate hearing on the Silicon Valley Bank collapse
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https://www.npr.org/2023/03/28/ [login to see] /senate-hearing-silicon-valley-bank-signature-bank-failure-collapse
Days after one of the largest bank failures in U.S. history, the fallout continues.
Some of the country's top banking and financial regulators appeared before the Senate Banking Committee on Tuesday to testify about what led to the downfall of Silicon Valley Bank – and how to prevent the same thing from happening elsewhere.
The collapse of the SVB, along with Signature Bank, has sparked scrutiny of the roles played by both bank managers and regulators. Policymakers will be debating whether new laws, rules or attitudes are needed to keep other banks from going under.
Here are five takeaways from Tuesday's hearing:
Days after one of the largest bank failures in U.S. history, the fallout continues.
Some of the country's top banking and financial regulators appeared before the Senate Banking Committee on Tuesday to testify about what led to the downfall of Silicon Valley Bank – and how to prevent the same thing from happening elsewhere.
The collapse of the SVB, along with Signature Bank, has sparked scrutiny of the roles played by both bank managers and regulators. Policymakers will be debating whether new laws, rules or attitudes are needed to keep other banks from going under.
Here are five takeaways from Tuesday's hearing:
5 things we learned from the Senate hearing on the Silicon Valley Bank collapse
Posted from npr.org
Banking
United States Senate
Management
Posted 1 y ago
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PO1 William "Chip" Nagel
Maj Kim Patterson Unfortunately! Americans are Not Known for Long Term Memory!
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PO1 William "Chip" Nagel
..."Bank executives could pay
The role of SVB's top executives came under scrutiny as well during the hearing.
Lawmakers expressed frustration at reports that executives at Silicon Valley Bank sold stock and received bonuses shortly before the bank's collapse.
Although the government doesn't have explicit authority to claw back compensation, it does have the power to levy fines, order restitution and prohibit those executives from working at other banks, if wrongdoing is found.
"Almost every American would agree it's simply wrong for the CEO and top executives to profit from their own mismanagement and then leave FDIC holding the bag," Van Hollen said.
President Biden this month urged Congress to pass legislation to increase the penalties on bank executives when mismanagement leads to bank failures, though it's unclear whether lawmakers will act."
..."Bank executives could pay
The role of SVB's top executives came under scrutiny as well during the hearing.
Lawmakers expressed frustration at reports that executives at Silicon Valley Bank sold stock and received bonuses shortly before the bank's collapse.
Although the government doesn't have explicit authority to claw back compensation, it does have the power to levy fines, order restitution and prohibit those executives from working at other banks, if wrongdoing is found.
"Almost every American would agree it's simply wrong for the CEO and top executives to profit from their own mismanagement and then leave FDIC holding the bag," Van Hollen said.
President Biden this month urged Congress to pass legislation to increase the penalties on bank executives when mismanagement leads to bank failures, though it's unclear whether lawmakers will act."
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