Washington — Rep. Patrick McHenry, chairman of the House Financial Services Committee, said Sunday that he believes “all options should be on the table” to prevent a further crisis in the banking sector. The sudden collapse of two banks this monthThis includes allowing a large, very large, failing company to buy a small, troubled company.

In an interview with “Face the Nation,” McHenry said Congress should address the circumstances that led to Silicon Valley Bank on March 10 And Signature Bank of New York Two days later, as well The response of the Biden administrationIncluding whether a big bank had the opportunity to step in and save the two failing institutions.

“I need to get to the bottom of the investigation in Congress, the who, what, when, where, why, and how of these bank failures and their resolution,” the North Carolina Republican said late last week. I did the Biden administration. Deployment of emergency measures To improve the banking system and backstop deposits in these banks.

“We saw the response of the private sector to help the bank,” he said. “Was that a viable option last weekend? Or was there an ideological lens that prevented them from taking these institutions and making it less tumultuous for America?”

McHenry said lawmakers did not know whether the Biden administration had a viable buyer for Silicon Valley Bank as of late last week, after Congress received comments from bankers who said they were unsuccessful. The lender is barred from bidding to acquire.

Rep. Patrick McHenry on “Face the Nation” on March 19, 2023.

CBS News

“I think we know we had a very difficult week for American banking, and we lost confidence,” he said. “And I think that raises questions about what happened last weekend.”

When asked whether a systemically large bank should be able to buy A distressed bank like First Republica regional lender hit by the collapse of Silicon Valley Bank, said McHenry said “all options should be on the table.”

The rapid failure of the Silicon Valley bank has renewed scrutiny on federal banking regulators and sparked a debate on Capitol Hill over whether Congress should tighten rules on mid-sized banks. Elizabeth Warren, a Massachusetts Democrat, “Face the nation,” he said.“on Sunday that she supports a plan to raise the Federal Deposit Insurance Corporation (FDIC) insurance cap above $250,000, although McHenry said she has not consulted with the White House or Biden about changing the deposit insurance level. Haven’t had “a single conversation” with management.

“What I will do, though, legislatively, and in an oversight role, is to determine whether or not we need to address the FDIC deposit level,” he said. “We did this after the last financial crisis, raising $100,000 to $250,000.”

But McHenry said “all options are on the table” to respond to the banking crisis.

“If we do that, we have to understand their trade,” he said. “It’s not a pure play of allowing a larger set of insurance coverage. It costs the financial system and community banks in particular. We need to look at this very carefully.”

McHenry has already scheduled his Financial Services Committee hearing with the head of the FDIC and the Federal Reserve’s vice chair for oversight. But he did not say whether he plans to meet with San Francisco Fed Chair Mary Daley to answer questions from Congress.

“We need to understand the decisions that were made last weekend, from Thursday to Sunday night to see if there is a viable private sector solution. We also need to understand the root causes of the collapse of these banks. , and we reach it,” he said. “The San Francisco Fed issue is a supervisory issue. We need to get to the bottom of whether it’s a supervisory issue, a regulatory issue, a bank mismanagement issue, maybe all three in all fairness.”

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