{"id":2054,"date":"2023-03-16T15:32:57","date_gmt":"2023-03-16T20:32:57","guid":{"rendered":"https:\/\/nakedpolitics.net\/?p=2054"},"modified":"2023-03-16T15:32:57","modified_gmt":"2023-03-16T20:32:57","slug":"silicon-valley-bank-collapse-spurs-calls-for-changes-by-congress","status":"publish","type":"post","link":"https:\/\/nakedpolitics.net\/?p=2054","title":{"rendered":"Silicon Valley Bank collapse spurs calls for changes by Congress"},"content":{"rendered":"\n

By Ray Bogan (Political Correspondent)<\/a>, Snorre Wik (Photographer\/Editor)<\/a><\/h2>\n\n\n\n

In the wake of Silicon Valley Bank\u2019s collapse<\/a>, members of Congress want to make changes to the U.S. banking system. The proposals include protecting consumers from added fees and clawing back executives\u2019 bonuses.<\/p>\n\n\n\n

The Secure Viable Banking Act<\/strong><\/p>\n\n\n\n

First, Sen. Elizabeth Warren, D-Mass., and Rep. Katie Porter, D-Calif<\/a>., want to reinstate stricter oversight. In 2018, Congress passed a bipartisan bill which increased the threshold for certain protections like stress tests from banks with $50 billion in assets to $250 billion. The SVB Act would repeal those deregulations<\/a>.<\/p>\n\n\n\n

\u201cOn the eve of the Senate vote in 2018, I warned \u2013 from right here on the Senate floor \u2013 that \u2018Washington is about to make it easier for the banks to run up risk, make it easier to put our constituents at risk, make it easier to put American families in danger, just so that the CEOs of these banks can get a new corporate jet and add another floor to their new corporate headquarters.\u2019 I wish I had been wrong,\u201d Sen. Warren said.<\/p>\n\n\n\n

But Republicans and even moderate Democrats aren\u2019t willing to support this proposal.<\/p>\n\n\n\n

\u201cI think that\u2019s a bit of a knee jerk reaction. I don\u2019t support it. Again, liquidity is the issue here and not, you know, whether it\u2019s capital requirements, clearly that wasn\u2019t the problem here,\u201d  Sen. Kevin Cramer, R-N.D., said.<\/p>\n\n\n\n

Passing fees to consumers<\/strong><\/p>\n\n\n\n

To make all Silicon Valley Bank depositors whole, the Biden Administration is imposing what\u2019s called a special assessment on banks. Sen. Josh Hawley, R-Mo., contends that\u2019s a fancy way of saying fees. So he\u2019s bringing a bill forward to stop banks from passing government-imposed fees on to consumers.<\/p>\n\n\n\n

\u201cIf a Missouri community bank failed, I promise you what the line would be from all the D.C. lobbyists is, \u2018Oh, that\u2019s just business. You know, that\u2019s creative destruction. That\u2019s the market.\u2019 But when it is a Silicon Valley Bank full of tech billionaires who are uber politically connected, oh, no, then it\u2019s systemic risk, then it\u2019s a contagion,\u201d Sen. Hawley, said.<\/p>\n\n\n\n

Executive accountability<\/strong><\/p>\n\n\n\n

Sen. Richard Blumenthal, D-Conn., is introducing legislation that would take back bonuses paid to executives just ahead of a collapse. SVB employees received pre-scheduled bonuses the day before the FDIC takeover. A couple weeks ago, the CEO and CFO collectively sold about $4 million in stock.<\/p>\n\n\n\n

\u201cThey were self dealing, paying themselves bonuses. Those bonuses and all self dealing in stock transactions that benefit top management when banks are taken over ought to be clawed back,\u201d Sen. Blumenthal said.<\/p>\n\n\n\n

The Justice Department is beginning a new program to claw back bonuses and compensation of failed corporate leaders. While it officially begins today, it\u2019s not clear if SVB executives will be impacted.<\/p>\n\n\n\n

Original Article: https:\/\/straightarrownews.com\/cc\/silicon-valley-bank-collapse-spurs-calls-for-changes-by-congress\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Ray Bogan (Political Correspondent), Snorre Wik (Photographer\/Editor) In the wake of Silicon Valley Bank\u2019s collapse, members of Congress want to make changes to the U.S. banking system. The proposals include protecting consumers from added fees and clawing back executives\u2019 bonuses. The Secure Viable Banking Act First, Sen. Elizabeth Warren, D-Mass., and Rep. Katie Porter, D-Calif., want to reinstate stricter oversight. In 2018, Congress passed a bipartisan bill which increased the threshold for certain protections like stress tests from banks with $50 billion in […]<\/p>\n","protected":false},"author":69,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10],"tags":[],"class_list":["post-2054","post","type-post","status-publish","format-standard","hentry","category-finance"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/2054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2054"}],"version-history":[{"count":1,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/2054\/revisions"}],"predecessor-version":[{"id":2055,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/2054\/revisions\/2055"}],"wp:attachment":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}