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The United States Senate Banking Committee held a hearing on March 28 regarding the regulatory response to recent bank failures. Officials from the Federal Deposit Insurance Corporation (FDIC), Federal Reserve and Treasury testified. FDIC chair Martin Gruenberg spoke about the causes of the failures of Silicon Valley Bank (SVB) and Signature Bank (OTC:), including the role of digital assets and the agency’s responses to the crisis.
High levels of uninsured deposits and rapid growth were common factors in the bank collapses in March, Gruenberg said. Gruenberg’s narrative began with the closing of digital asset-focused Silvergate Bank, which was announced on March 8, although that story began with the bankruptcy of FTX.
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