SVB collapse: Six people to watch in banking disaster

OOne of the most important conversations in Capitol Hill this week was the unexpected collapse Silicon Valley Bank.

While the White House rejects a bailout program that mirrors 2008’s financial crisis, the Justice Department and Securities and Exchange Commission have launched an investigation into the bank’s failure. The drama surrounding the bank’s collapse is continuing to unfold. Here are six important players to keep an eye on:

SVB COLLAPSE – SORTING FACT FROM SILICON VALLEY FICTION BANK BLAME GAMES

Michael Barr, Federal Reserve vice-chair of supervision

Barr is leading the inquiry into Federal Reserve’s supervision and regulation of the bank. According to the reserve, a report will be published on May 1 detailing its findings.

“We need to have humility, and conduct a careful and thorough review of how we supervised and regulated this firm, and what we should learn from this experience,” Barr made the statement in a release about the investigation.

Barr will likely play a significant role in the future as Silicon Valley Bank’s developments continue to inform policy and political considerations on both the national and international sides.

Lael Brainard is the director of National Economic Council.

Brainard, who was sworn in recently as the leader of the National Economic Council will be the intermediary between Congress and the White House when it comes to banking.

Brainard was previously the vice chairwoman for the Federal Reserve before her promotion. Brainard was vice chairwoman before being promoted. She warned of the SVB crises if the former President Donald Trump had relaxed regulations that had been in place following the 2008 financial crash.

Senator Sherrod Brown (D.OH) is the chair of Senate Banking Committee.

Brown’s status as the Senate Banking Committee’s leading senator makes him an important player in the ongoing banking crisis on Capitol Hill, and in discussions about future regulations.

Brown was asked by officials to conduct an investigation into the major financial collapse. A letter was also written detailing the areas that could be affected by another collapse. Last week regulators closed down two banks including Signature Bank in New York.

“These banks were over-concentrated and over-reliant on particular industries and operated with an exorbitantly high percentage of uninsured deposits,” Brown wrote in an email to the Treasury Department. “Furthermore, the banks also lacked adequate risk management.”

Brown said that it would be a good idea to increase regulation in order to prevent future disasters.

Rep. Ro Khanna (D-CA).

Khanna is the representative of Silicon Valley in the House of Representatives. His interesting role on Hill is that he must balance the interests of the techno-community with being on the extreme left and pushing for more regulations of banks.

Khanna claimed that Silicon Valley Bank had asked him for fewer restrictions. This, he said, had made him disagree with members of his party.

“They lobbied to weaken the Dodd-Frank restrictions,” Khanna added. “They lobbied me and others to weaken them, to exempt them from the regulations that could have prevented this crisis.”

Sen. Elizabeth Warren (D-MA):

Warren has been a strong advocate for strict financial regulation and consumer protection on Capitol Hill. Warren was a vocal advocate for strict financial regulation and consumer protection on Capitol Hill during the banking crisis.

Due to her polarization Warren is a key player. Democrats who want stricter regulations view Warren as a strong ally. However, banks have not been as warm to her.

Jeff Zients is White House Chief of Staff:

Zients joined the White House just before the bank closings. Zients has a strong background in economics having been the NEC director under President Barack Obama and as a member of the Facebook board.

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His main task will be to maintain Biden’s message and balance the opposing views within his party. Liberal Democrats advocate for stricter banking regulations, while centrist Democrats seek a more balanced agreement.

“The Biden-Harris Administration moved quickly to stabilize the banking system, without putting taxpayer dollars at risk – a priority for us,” Zients tweeted Friday afternoon. “@POTUS is putting forward specific proposals Congress can pass now to hold senior bank executives accountable. Let’s get it done.”