House lawmakers to hold first hearing on bank failures

WASHINGTON — The House Financial Services Committee on Friday announced its first hearing on the failures of Silicon Valley Bank and Signature Bank.

Martin J. Gruenberg, chairman of the FDIC board of directors, and Michael S. Barr, vice chair for supervision for the Federal Reserve board of governors, are scheduled to testify at the March 29 hearing. More witnesses may be added, the committee said in a statement.

The announcement follows President Joe Biden’s request to Congress on Friday to allow financial regulators more authority to claw back compensation from executives at failed banks.

The Federal Deposit Insurance Corporation seized SVB’s deposits March 10 hours after the bank’s executives received bonuses. Regulators shut down cryptocurrency-focused Signature Bank on Sunday to stem a systemic risk.

Committee Chairman Patrick McHenry, R-N.C., and Ranking Member Maxine Waters, D-Calif., said House Financial Services is “committed to getting to the bottom of the failures” of the banks.

“This hearing will allow us to begin to understand why and how these banks failed,” the lawmakers said. “As Chairman and Ranking Member, we take our oversight duties seriously. We are working around the clock to deliver answers to the American people in order to protect depositors, promote the safety and soundness of America’s banks, and strengthen our financial system. We will conduct this hearing without fear or favor to get the answers the American people deserve.”