House lawmakers roast regulators over failed banks
Anger at both individual regulators and a lack of sufficient banking regulation boiled over from the
The government responded to the failures of
Officials are justifying this move by citing a "systemic risk" to the
In response,
"We have a lot to learn from the two side-by-side failures of
"Had we followed
Meanwhile,
"The
Barr responded that the Fed has a lot of power to act when things don't look right at a bank.
Regulators had given the bank a grade of 3, which in the Fed's rating system indicates a bank that is not at all well managed, in a scale that ranges from a grade of 1, which is considered optimal, up to a grade of 5.
"The bank regulators have substantial discretion to use those authorities when banks are operating in an unsafe and unsound manner. I agree with that," Barr said.
Biden says banking conditions are improving
"I think we've done what we need to do executively. I feel confident things are settling out. The markets seem to be responding," he said. "I think it's pretty much under control now. It remains to be seen, but we're looking to see whether it needs any further legislation."
"I'm not sure whether we get much legislative change. But we're looking at that as well," Biden added in regard to new laws that may be passed in response to the latest bank failures.
While bad management is widely being blamed for the collapse of SVB and the crypto-focused
How would wealthy depositors be reimbursed for bank failures?
It's also not clear if the funds from the DIF used to save wealthy depositors will be charged an insurance premium or if they got reimbursed for free.
"The
"Most people would not see the insurance fee directly, because it is charged to [the] bank, but we can be sure that the bank passes this cost on to its depositors," Baker said
"However, these fees only apply to the first
Any losses to the deposit insurance fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.
The bailed-out depositors include the digital media hardware company Roku, as well as other tech businesses in
"There are some outrageous examples there. I think, you know, had had deposits of over
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Fed’s Barr acknowledges oversight lapses before SVB failure
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