Regulators faced the U.S. Senate Banking Committee Tuesday morning in a hearing following the collapse of SVB Financial Group (NASDAQ: SIVB) and Signature Bank (NASDAQ: SBNY).
What Happened: FDIC chair Martin Gruenberg, the Federal Reserve's Vice Chair for Supervision Michael Barr and the Treasury’s Undersecretary for Domestic Finance Nellie Liang testified in front of Congress Tuesday morning.
The hearing followed the biggest banking collapse since the 2008 financial crisis, which was backstopped by the government in an effort to stabilize the situation and strengthen public confidence in the financial system.
In Gruenberg's opening statement, he stressed this was not a bailout and that banks were allowed to fail because they failed to address risks. The depositors however were made whole and should continue to have confidence in the banking system.
Barr and Liang echoed Gruenberg's comments, noting that the system is sound, has ...
Related tickers: SBNY, SIVB.
Read Full Article
