US Democratic Senator Elizabeth Warren on Sunday called for an independent investigation into the collapse of Silicon Valley (SVB) and Signature banks.
Warren was particularly critical of Mary Daley, president of the San Francisco Federal Reserve Bank, which is responsible for overseeing Silicon Valley’s bank.
Warren, who has been pushing for tighter banking regulations, sent a letter to inspectors general at the US Treasury Department, the Federal Deposit Insurance Corporation and the Federal Reserve Bank on Sunday, urging regulators to examine recent management and oversight measures at the two banks that collapsed earlier this month.
Warren said she did not trust Mary Daley after the collapse of the Silicon Valley bank, and added in her letter that the inspectors general of the Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation should submit an initial report to Congress within 30 days.
California regulators shut down Silicon Valley Bank on March 10 and handed its affairs over to the Federal Deposit Insurance Corporation. This collapse is the largest for a US bank since the 2008 financial crisis.
The SVB Financial Group, the bank’s parent company, said on Friday that it had filed for restructuring under Chapter 11 of the Bankruptcy Protection Act.
A source familiar with the matter told Reuters that US prosecutors are investigating the collapse of the Silicon Valley bank.
Obsession
Meanwhile, Bloomberg reported on Saturday, quoting informed sources, that First Citizens Bancshares is evaluating an offer to acquire Silicon Valley Bank.
The report said that at least one other institution is considering taking over the collapsed bank.
Reuters reported earlier this week that the Federal Deposit Insurance Corporation had asked banks interested in acquiring Silicon Valley and Signature to submit offers by March 17.
