U.S. lawmakers met with the Federal Reserve and Federal Deposit Insurance Corp. on Friday to discuss the collapse of Silicon Valley Bank (SVB).
A number of lawmakers expressed concern after SVB collapsed earlier Friday, including Waters.
“I am alarmed by the failure of Silicon Valley Bank, which marks the second largest bank failure in U.S. history,” she said in a statement. “I am closely monitoring and convening Committee members with regulators so myself and members can understand the latest around the closure of Silicon Valley Bank (SVB) by the California Department of Financial Protection and Innovation (DFPI), and the Federal Deposit Insurance Corporation (FDIC) appointed as receiver. I appreciate the DFPI and the FDIC for taking decisive action today, and I remain confident in America’s financial markets and the ability of our regulators to protect consumers and investors.”
Several California lawmakers tweeted they were also following the situation. One key concern is whether depositors would receive any portion of their funds beyond the FDIC’s $250,000 limit per account.
“We must make sure all deposits exceeding the FDIC $250k limit are honored. Banking is about confidence. If depositors lose confidence on the safety of their deposits over 250k then we are in trouble,” he said.
Treasury Secretary Janet Yellen has also met with bank regulators from the Fed, FDIC and Office of the Comptroller of the Currency, a statement from the department said.
“Secretary Yellen expressed full confidence in banking regulators to take appropriate actions in response and noted that the banking system remains resilient and regulators have effective tools to address this type of event,” the statement said.