House Republicans asked Treasury Secretary Janet Yellen and FDIC Chair Martin Gruenberg for detailed answers on the failures of Silicon Valley Bank and Signature Bank, including on the efforts to sell the firms to private-sector buyers.
(Bloomberg) — House Republicans asked Treasury Secretary Janet Yellen and FDIC Chair Martin Gruenberg for detailed answers on the failures of Silicon Valley Bank and Signature Bank, including on the efforts to sell the firms to private-sector buyers.
Financial Services Chair Patrick McHenry of North Carolina and Vice Chair French Hill of Arkansas want to know the process for evaluating bidders for the banks as well as the full rationale for invoking the systemic risk exception, which was used to backstop depositors.
“It is critical that Congress understand the events leading up to and following the failures of both Silicon Valley Bank and Signature Bank,” they wrote to Gruenberg.
They specifically asked Gruenberg about bids for SVB by Flagstar Bank, PNC Bank and RBC Bank, the criteria used for evaluating them, and whether there were any additional bids.
They asked for written answers by April 1. Their committee will have a hearing March 29 on the bank failures, one day after the Senate Banking Committee holds its own hearing.
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