Oversight lawmakers continue to dig into SVP bank failure

The House Oversight lawmakers tasked with finding out why Silicon Valley Bank failed earlier this year and threatened the health of the entire economy are pushing deeper in their investigation.

The investigation continues after lawmakers said earlier this year there is evidence that the San Francisco Federal Reserve Board knew of Silicon Valley Bank’s woes since 2021 but did little about it.

“SF Fed appears to have failed to adequately supervise SVB and respond to the bank’s mismanagement, ultimately leading to SVB’s seizure by federal regulators – the second largest bank failure in U.S. history – and threatening a panic in our banking system,” House Oversight Republicans, led by Chairman James Comer, R-Ky., said in a letter to to the president and CEO of the Federal Reserve Bank of San Francisco earlier this year.

House Committee on Oversight and Accountability Chairman James Comer, R-Ky., and Subcommittee on Health Care and Financial Services Chairwoman Lisa McClain, R-Mich., sent a letter to the SF Fed on Monday demanding more information, arguing the board has not adequately responded to information requests.

The lawmakers said the SF Fed was not doing enough to cooperate with the investigation, only providing publicly available data and not directly responding to the needs of requests.

- Advertisement -

“Due to our concerns with the inadequacy of the SF Fed’s response, on May 25, 2023, Committee staff held a call with SF Fed staff,” the letter said. “During that call, the SF Fed informed Committee staff that upon receipt of our letter, the SF Fed immediately contacted your staff, who informed them that the Fed Board was asserting privilege over a majority of the requested materials as confidential supervisory information (CSI), and that the SF Fed would not be able to provide any more information to the Committee.”

The lawmakers say the SF Fed later agreed to hand over nonpublic documents but has since not been responsive to the committee’s requests.

The SF Fed declined to comment.

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Fiscal hawks: House budget plan could add $25 trillion in debt over next decade

House leaders have praised their early work on crafting...

The Hydrocodone Hyperbole: The Best Drug For Pain Isn’t Always An Opioid

Even though opioids are highly addictive, they continue to...

Cornell evaluating Trump’s DEI executive order, NYU has no comment

(The Center Square) – Cornell University is evaluating President...

Illinois one of the leaders in generating tax revenue from sports gambling

(The Center Square) – Illinois is one of several...

Feds, some lawmakers tackle post-Madigan efforts to curb public corruption

Federal authorities and state lawmakers say they will keep...

Man pleads guilty to $1.5 million in SNAP fraud

(The Center Square) – An Illinois man pleaded guilty...

Illinois lawmakers zoom in on budget ahead of governor’s address

(The Center Square) – Illinois lawmakers have differing budget...

Inflation hits Illinois consumers hard, especially in Chicago area

(The Center Square) – According to a new report,...

More like this
Related

Fiscal hawks: House budget plan could add $25 trillion in debt over next decade

House leaders have praised their early work on crafting...

The Hydrocodone Hyperbole: The Best Drug For Pain Isn’t Always An Opioid

Even though opioids are highly addictive, they continue to...

Cornell evaluating Trump’s DEI executive order, NYU has no comment

(The Center Square) – Cornell University is evaluating President...

Illinois one of the leaders in generating tax revenue from sports gambling

(The Center Square) – Illinois is one of several...