Wyoming banks should not be forced to cover the tab for regulators’ mistakes
WASHINGTON, D.C. – During a Senate Banking Committee hearing exploring the reasons behind recent bank failures, U.S. Senator Cynthia Lummis (R-WY) pressed Federal Reserve Board Vice Chair for Supervision Michael Barr about federal regulators’ failure to address glaring warning signs at Silicon Valley Bank prior to its collapse. Senator Lummis additionally pushed Federal Deposit Insurance Corporation (FDIC) Chairman of the Board Marty Gruenberg to exempt community banks in Wyoming from any new fees levied to cover the depositors at these failed banks.
“I look at all this and I think that among all these statutes and regulations the Fed had plenty of authority to foresee and prevent the collapse of Silicon Valley Bank,” said Senator Lummis. “As I look at what authority you’ve been given, I can’t think of another additional rule or regulation or law that you needed. The blame for this meltdown falls squarely at the feet of the regulators asleep at the wheel.”
Senator Lummis also noted the importance of ensuring Wyoming community banks are not forced to foot the bill and comply with overly burdensome new regulations as a result of these failures.
Click here to view the full video of Senator Lummis’ questioning.