Senator Elizabeth Warren (D-Massachusetts) on Tuesday accused Federal Reserve Chairman Jerome Powell of causing the collapse of Silicon Valley Bank and Signature Bank and called on him to step down in an internal investigation into the failure.
and TweetWarren unloaded on Powell, whom she has sharply criticized in the past.
Warren tweeted that Fed Chairman Powell’s actions led directly to the collapse of the bank. “In order for the Fed’s investigation to have credibility, Chairman Powell must decline this internal investigation.”
“Worthy of the director’s vice-chairman” [Michael] Barr has the independence he needs to do his job,” she added.
The Federal Reserve said Monday it is reviewing its supervision of Silicon Valley banks after Friday’s sudden failure. Reuters reported.
Financial markets have been in turmoil since the double collapse. Some conservatives accuse the Biden administration of bailing out a financial sector that is more aggressive in risky business, while some liberals, such as Warren, accuse Washington of weakening regulation. .
“If Congress and the Federal Reserve hadn’t withdrawn their tighter oversight, the SVB and signatures would have been subject to stronger liquidity and capital requirements to withstand financial shocks. I have written New York Times on Monday.
“They would have needed to conduct regular stress tests to expose vulnerabilities and strengthen the business.”
The Federal Deposit Insurance Corporation announced Friday that it would acquire SVB, bringing about $175 billion in customer savings under federal regulator control.
but, Commentary For the Daily Mail, former Vice President Mike Pence said fees would still be high for Americans with bank accounts.
“Governments should allow bad actors to bear the brunt of bad decisions instead of encouraging risky behavior in the private sector. Bankruptcy laws are there for a reason,” he wrote. .
“Bankruptcy is the orderly process that allows a failed business to rebuild or be bought by a healthy competitor, ensuring that the strong survive and the weak fall by the wayside. and this is critical to maintaining a functioning free market.”
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