Fed to blame for theft of Silicon Valley bank-Senator
By Ray Johnson
Budrigannews.com – During an internal investigation at the Federal Reserve, Massachusetts Senator Elizabeth Warren, one of the most prominent anti-crypto voices in Congress, has called on Jerome Powell to recuse himself.
On March 15, Warren told reporters in Washington, D.C., that Powell had led “the de-regulatory movement” at the Fed, possibly referring to some of the conditions that had caused Silicon Valley Bank to fail. Following the bank’s closure by the California Department of Financial Protection and Innovation on March 13, the chair of the Fed called for a “thorough, transparent, and swift review.”
Warren stated, “chair Powell must recuse himself for this review to have any credibility at all.” He is the person who not just managed the Fed, who not just came to Congress and addressed inquiries from me and from others about this de-administrative move, however drove it.”
Added the senator:
“It’s important that chair Powell take a step back and let Michael Barr […] conduct an independent investigation while we’re examining what went wrong.”
On May 1, Barr made the announcement that he would be leading a review of the Fed’s supervision and regulation of Silicon Valley Bank. According to reports, the Securities and Exchange Commission and the U.S. Department of Justice have also announced their own investigations into reports that some bank executives sold stock in the weeks leading up to the closure.
Digital assets appear to be taking some of the blame in the media and among some government officials, despite the fact that the collapse of three major banks did not necessarily have anything to do with crypto.
The parent company of Silvergate Bank announced on March 8 that it would voluntarily close the cryptocurrency bank, stating that its strategy included “full repayment of all deposits.” The runaway firms with approximately $40 billion in assets forced Silicon Valley Bank to close, but the United States government intervened to announce that the majority of uninsured depositors would be compensated.
Due to actions taken by the New York Department of Financial Services to “protect the U.S. economy by strengthening public confidence” in the banking system, Signature Bank stands out to many as an exception among these failures. Barney Frank, a member of the Signature Board, said that the government was trying to send a “strong anti-crypto message,” and the NYDFS said that the bank didn’t give the regulator “reliable and consistent data.”