US lawmakers met with the Federal Reserve and the Federal Deposit Insurance Corporation on Friday to discuss the collapse of Silicon Valley Bank (SVB).
A number of lawmakers expressed concern after the collapse of the SVB earlier Friday, including Waters.
“I am troubled by the Silicon Valley bank failure, which represents the second largest banking failure in US history,” she said in a statement. “I am watching the committee members closely with the regulators and are meeting with them so that the members and I can understand the latest developments regarding the closing of the Silicon Valley Bank (SVB) by the California Department of Financial Protection and Innovation (DFPI) and the Federal Deposit Insurance Corporation (FDIC) as recipient. I I appreciate the DFPI and FDIC for taking decisive action today, and I remain confident in US financial markets and our regulators’ ability to protect consumers and investors.
Several California lawmakers tweeted that they were also watching the situation. One of the main concerns is whether depositors will receive any portion of their funds beyond the FDIC limit of $250,000 per account.
“We must make sure all deposits over the FDIC $250,000 limit are honored. Banking is about trust. If depositors lose faith in the safety of their $250,000-plus deposits, we’re in trouble,” he said.
Treasury Secretary Janet Yellen also met with bank regulators from the Federal Reserve, the FDIC and the Office of the Comptroller of the Currency, according to a statement from the department.
“Secretary Yellen expressed full confidence that banking regulators will take appropriate action in response, and noted that the banking system remains resilient and that regulators have effective tools in place to address this type of event,” the statement said.
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