Sens. Tim Scott (R-S.C.) and Jon Tester (D-Mont.) grilled a panel of financial regulators on May 18, with Scott going so far as to demand immediate dismissals at the Federal Reserve in response to the central bank’s failure to effectively regulate Silicon Valley Bank in view of its collapse.
During the Senate Banking Committee hearing, Michael Barr, Fed vice chair for supervision, faced intense bipartisan scrutiny for his acknowledged failure in providing adequate oversight of Silicon Valley Bank. Barr recently authored a report that highlighted the Fed’s negligent supervision and its inability to foresee the systemic threat posed by the bank’s eventual demise.
