Bernie Sanders comments on SVB collapse, shedding light on the CEO being the director of the San Francisco Fed
Per Bloomberg
Bernie Sanders has spoken up about the recent Silicon Valley Bank collapse, providing a statement saying the most absurd thing about it was the link between the CEO and the San Francisco Fed. The senator then said he would be introducing a bill to counter this.
Sanders revealed that the CEO was a director of the San Francisco Fed, the body it was in charge of regulating. He was referring to Greg Becker, who served as the director of the San Francisco board before the bank's failure.
Sanders: “I’ll be introducing a bill to end this conflict of interest by banning big bank CEOs from serving on Fed boards"
The Senate Health Committee staff director Warren Gunnels also gave a statement on the bill and its additional inclusions, including additional measures for Fed employees and board members. Senator Sanders also chairs the Senate Health Committee.
Gunnels: "(the bill) would also prevent Fed employees and board members from owning any stock or investing in any institution the Fed regulates,”
The staff director also noted that this would be an update of a bill that was earlier filed by Sanders. Sanders filed the initial bill a decade ago.
Senator Chris Van Hollen also pointed out that there should be reconsideration regarding the Fed's structure. This was due to the fact that Becker played a major role in the supposed regulating body.
Van Hollen: “I think we need to eliminate even the perception of conflict of interest, if you have a bank that’s part of the board whose job it is to supervise banks in a particular region,”
A federal investigation has been called by the congresspeople into the role of Goldman Sachs in the collapse of Silicon Valley Bank. It was pointed out that while the firm is expected to profit from the failure of SVB, they urge them to analyze its involvement.
Days after HSBC rescued Silicon Valley Bank UK, it was noted that $18 million in executive bonuses were handed out.
See flow at unusualwhales.com/flow.
Other News:
- Congresspeople have called for a federal investigation into the role Goldman Sachs, $GS, played in the collapse of Silicon Valley Bank
- Silicon Vally Bank UK handed out over $18 million in executive bonuses days after HSBC rescued it, and were not regularly scheduled
Resources: