Sen. Elizabeth Warren asks if Silicon Valley Bank and Signature Bank execs would return five-year earnings
Per CBS News
Massachusetts Senator Elizabeth Warren is now calling on the executives of both Silicon Valley Bank and Signature Bank, asking if they would return what they earned in salary and bonuses over the last five years before the collapse of their banks.
Warren called for tougher regulations after the collapse of Silicon Valley Bank, among others. In an interview with WBZ-TV, she gave her thoughts on the Feds, Congress, and banking executives, slamming them for their involvement in the rollback of regulations for mid-size banks in 2018.
The Senator reportedly warned of this happening since the rollback, which took place during the previous administration. She said that action had to be taken for this not to repeat.
Warren: "It's time to hold the Fed accountable, do a full investigation of what they've done. And it's time to spend, send a very strong message to bank CEOs - you're not going to be able to load up on risk in order to juice your profits."
Warren also specifically said that the investigation has to go forward without Jerome Powell, saying he was the "leader of the pack in creating this problem."
The chair of the Federal Reserve had recently blocked phrases that mentioned "regulatory failure" in a statement meant to address the situation with the Silicon Valley Bank collapse. Powell reportedly wanted to focus more on the "actions being taken to shore up the financial system."
Going back to Silicon Valley Bank, it was found that they ran without a Chief Risk Officer for nine months, from April 2022 to January 2023, which is reportedly being focused on by the Feds. Laura Izurieta, who stepped down on April 2022, earned $2 million for her 2022 work and around $460,000 in severance, per a separation agreement.
See flow at unusualwhales.com/flow.
Other News:
- Jerome Powell, the chair of the Federal Reserve, blocked phrases regarding regulatory failure by the Federal Reserve in the Silicon Valley Bank collapse
- Silicon Valley Bank had no Chief Risk Officer for 9 months, from April 2022 until January 2023
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