While President Joe Biden has been trying to stoke confidence in the American financial system following the recent collapse of Silicon Valley Bank (SVB) and Signature Bank (SB), U.S. Sen. Katie Britt (R-Montgomery) said she has more questions than answers about the situation after Senate Republicans were excluded from the administration’s Sunday briefing.
“My office and I have been in contact with federal financial regulators since Friday, and we continue to closely monitor the situation,” Britt, who is a member of the Senate Banking subcommittee on Financial Institutions and Consumer Protection, said in a release. “The public deserves full transparency and accountability without regard to partisanship, and it is unacceptable that this Administration excluded Senate Republicans, including those on the Senate Banking Committee, from Sunday night’s bicameral Member briefing."
Last Wednesday, concerned depositors raced to withdraw their money after SVB announced it would be selling a significant portion of its securities at a loss. U.S. officials stepped in Sunday by instituting emergency measures to prevent the collapses of SVB and SB from triggering runs on other banks. The government assured bank customers their deposits would be safe.
“Right now, we have more questions than answers. Why did regulators not see this coming? Did Silicon Valley’s focus on ESG distract from their fiduciary responsibilities, in turn contributing to its collapse? How much extra money will local community banks in rural Alabama have to fork up to fund the Administration’s plans?" Britt continued.
"Unfortunately, we did not get any clarity on these pressing items on today’s Member briefing call, which the Federal Reserve did not make time to attend. Ultimately, American taxpayers should not have to foot the bill for bank executives’ mismanagement and regulators’ failure. I will continue to support the strength of our financial system, which is crucial to hardworking families, small businesses, retirees, and communities in every corner of our nation.”
Editor's note: Information regarding the collapse of SVB has been added for clarity.
To connect with the author of this story or to comment, email [email protected].
Don't miss out! Subscribe to our newsletter and get our top stories every weekday morning.