First came the spectacularly quick bank failure. Then came the fears of a financial contagion. Now get ready for the congressional hearings.
Federal financial watchdogs will appear before two Capitol Hill committees in the week ahead, beginning with the Senate Banking Committee on Tuesday. FDIC Chairman Martin Gruenberg, Federal Reserve Vice Chair for Supervision Michael Barr, and Nellie Lang, the Treasury undersecretary for domestic finance, are scheduled to appear. The same three will follow their Senate hearing with testimony to the House Financial Services Committee on Wednesday.
They will be pressed on why regulators didn’t spot trouble at Silicon Valley Bank and Signature Bank sooner, how they made decisions to come up with their rescue efforts, and what impact possible new rules could have on the banking industry.
