Senate Blasts SVB Managers

The fallout of Silicon Valley Bank’s failure rumbled through Washington on Tuesday, with lawmakers from both parties demanding that the Federal Reserve explain why it didn’t use powers it had and some Democrats calling for tighter financial rules.

Lawmakers from both parties expressed their shock and anger, at a Senate Banking Committee hearing, over the sudden collapse of Silicon Valley Bank and Signature Bank earlier this month. The regional banking crisis also has seen one lender liquidate itself and a fourth aided by a consortium of private banks.

“You don’t have to be an accountant to figure out what the hell was going on,” said Senator Jon Tester, a Montana Democrat, referring to the interest-rate risk taken on by Silicon Valley Bank, which collapsed March 10. “If it is the regulators’ fault, it better be fixed. If it is the regulation, it better be fixed.”

Source: Bloomberg