CEOs of failed banks to testify before Senate

By Norhan Adel On May 3, 2023

U.S. Senator Sherrod Brown listening during a committee hearing on Capitol Hill in Washington, U.S., May 10, 2022 — U.S. Senator Sherrod Brown, Senate's Banking Panel Chairman. Image Credits to Elizabeth Frantz | Reuters

The Senate Banking Committee reported on Tuesday that it will hold a hearing May 16 with former heads of failed banks. The hearing will be part of investigations looking into the causes of Silicon Valley Bank (SVB) and Signature Bank.

Signature Bank’s co-founder, Scott Shay and former president, Eric Howell will testify along with Gregory Becker, SVB’s former CEO.

Several reports issued following the banking crisis last month have blamed poor management and regulatory deficiencies for the events.

The Federal Deposit Insurance Corporation (FDIC) was responsible for Signature Bank’s regulation, while the Fed board was SVB’s main regulator.

The committee is headed by Senator Sherrod Brown and several experts are expected to testify in a different hearing session.

This includes the Federal Reserve’s chief regulator, Michael Barr and chairman of the Federal Deposit Insurance Corp., Martin Gruenberg.