US Republicans demand answers from Fed, insurer following bank failures

By Ovunc Kutlu

ISTANBUL (AA) - Two US republicans issued a letter Monday demanding information from the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) following the sudden collapses of some banks.

The lawmakers formally demanded information from the Fed and the FDIC "regarding their regulatory activities with respect to Silicon Valley Bank and Signature Bank for the two years leading up to the collapse of these two banks."

"The two Republican leaders of the committees of jurisdiction noted that, as part of their oversight responsibilities, they intend to bring transparency to what regulators knew, when they knew it, and why they did not act earlier to stop these bank failures from transpiring," said the letter.

The signatories included House Financial Services Committee Chairman Patrick McHenry, a Republican from North Carolina, and Tim Scott, the Ranking Member of the Senate Committee on Banking, Housing and Urban Affairs, a Republican from South Carolina.

"The recent failures of Silicon Valley Bank and Signature Bank have brought into question the diligence of the individuals and entities charged with overseeing financial institutions and the broader U.S. financial system," said the letter.

"Our oversight responsibilities to the American people require that we evaluate the root causes of these bank failures as well as the failures of U.S. regulatory agencies to prevent these collapses from occurring," it added.