HomeEconomyBank failures in the United States: regulators questioned by senators

Bank failures in the United States: regulators questioned by senators

The resounding bankruptcy of California-based SVB bank in early March, followed by that of Signature, rocked global markets and raised questions and criticism about US banking rules. On Tuesday, powerful regulators on the other side of the Atlantic clashed with the senators.

US senators questioned the country’s banking regulators on Tuesday, accused of not having anticipated the bankruptcy of banks SVB and Signature Bank, and that they will issue several reports on the subject on May 1.

“You didn’t have to be an accountant to know what was going on,” said another Democrat, Jon Tester. “It seems to me that the regulators knew about the problem but nobody took charge.”

The Senate Banking Committee heard Tuesday from officials from the US central bank (Fed), responsible for regulating banks, as well as from the US bank deposit guarantee agency, the FDIC.

“State of Disorder”

Reproaches also flowed from the Republicans: “The result of this failure puts the banking industry in a state of disarray that we have never seen before. Despite all the preparation and tools at its disposal, the FDIC has failed to do its job “, lament. Bill Hagerty.

The FDIC and the Fed have announced reports on the subject.

The FDIC will conduct “a comprehensive review of the deposit insurance system and publish a report by May 1, 2023,” FDIC Chairman Martin Gruenberg said.

In the United States, bank deposits are protected by the FDIC up to $250,000 per establishment and per customer. Recently, US banks have requested coverage for all deposits.

Author: obstetrics with AFP
Source: BFM TV

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