Democratic U.S. Senator Elizabeth Warren called on Sunday for an independent investigation into the collapse of Silicon Valley Bank and Signature Bank, specifically criticizing the President of the Federal Reserve Bank of San Francisco, who oversees Silicon Valley Bank. Warren, who is advocating for stricter banking regulations, sent a letter to the inspectors general of the U.S. Treasury Department, the Federal Deposit Insurance Corporation, and the Federal Reserve, urging regulators to examine recent management and oversight measures of the two banks that failed earlier this month.
Regulators in California closed Silicon Valley Bank on March 10 and handed its affairs over to the Federal Deposit Insurance Corporation. This collapse is the largest for a U.S. bank since Washington Mutual's failure during the 2008 financial crisis. On Friday, SVB Financial Group, the bank's parent company, announced it had filed for Chapter 11 bankruptcy protection. A source familiar with the matter indicated that U.S. prosecutors are investigating the collapse of Silicon Valley Bank.
Warren stated today that she does not trust Mary Daly, the President of the Federal Reserve Bank of San Francisco, following the collapse of Silicon Valley Bank. In her letter, she insisted that the inspectors general of the Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation should provide an initial report to Congress within 30 days.
