Congress has already held several hearings on the fall of Silicon Valley Bank (SVB) and Signature Bank, but senators say they’re just getting started.
Sen. J.D. Vance (R-Ohio) told The Hill that the bank collapse is “going to be a main focus in April and May.” He called for subpoenas of SVB executives who offloaded millions of dollars in company stock prior to the bank’s collapse.
“They had to know it was worthless. They made off like bandits, but of course the American taxpayer got stuck with the bill,” he said.
Former SVB CEO Gregory Becker sold $3.4 million in company stock less than two weeks before his bank was shuttered, according to a Securities and Exchange Commission (SEC) filing.
The top lawmakers on the Senate Banking Committee have called on Becker to testify and are urging the SEC to probe the stock trades.
It’s less clear whether the bank collapses will lead to bipartisan legislation.
Sen. Tim Kaine (D-Va.), who voted for a 2018 bill to lessen regulations on midsize banks such as SVB, told The Hill that another bipartisan banking bill could be warranted, depending on the root cause of the crisis.
“Let’s get the report and that report will point the way either toward administrative fixes or legislative fixes,” he said.
President Biden is calling on regulators to strengthen oversight of midsize banks under the law, while progressives led by Sen. Elizabeth Warren (D-Mass.) want to repeal provisions in the bill that exempted midsize banks from stress testing and capital requirements.
Any bill would have to get approval from House Financial Services Chairman Patrick McHenry (R-N.C.), who has struck a cautious tone on new legislation.
The Hill’s Tobias Burns has the full story here.
