Claire Williams

The Federal Reserve's survey of financial market participants also found worries about monetary policy tightening and the ongoing impacts of persistent inflation.

Rock-bottom stock prices at midsize banks are fueling concerns that depositors could get spooked, and short sellers are drawing much of the blame. But their persistence may be exposing a broader lack of confidence in the industry.

Former First Republic CEO Mike Roffler told regulators earlier this year that the bank could fail according to its resolution plan, but the institution still needed extra help to stay afloat long enough to organize a sale without further harming the financial system.

Sens. Elizabeth Warren, D-Mass., and John Kennedy, R-La., will examine the role of the Federal Reserve in bank failures in a hearing scheduled for May 10.

The Federal Deposit Insurance Corp. suggested targeted deposit insurance expansion for some accounts in a report issued Monday, but the layout in Congress looks tricky to pass any permanent changes.

President Joe Biden said on Monday that he's called on Congress "to give regulators the tools to hold banking executives accountable."

First Republic Bank was shuttered by regulators early Monday, and all its deposits and most of its assets were acquired by JPMorgan. San Francisco-based First Republic was undone by low-rate mortgages it made to its wealthy customers as well as by the fallout from last month's banking crisis.

The Federal Deposit Insurance Corp. said in a report released Friday that Signature's rapid, unrestrained growth and inadequate risk management practices outpaced supervisors' ratings and responses, even though the issues were known to the agency.

In a highly anticipated report on the failure of Silicon Valley Bank, Federal Reserve Vice Chair for Supervision Michael Barr says the bank's own mismanagement and an acquiescent supervisory structure created the conditions for the bank to fail.

The Government Accountability Office said that  the Federal Reserve Bank of San Francisco flagged problems at Silicon Valley Bank as early as 2018.

Rep. French Hill, R-Ark., said the House Financial Services Committee and the House Agriculture Committee will hold a joint hearing on crypto next month.

The House Financial Services Committee passed several bills through to the full House that would toughen congressional oversight of the Consumer Financial Protection Bureau.

Financial regulation scholar Mark Flannery said in a new research paper that small banks would be more likely to be negatively impacted.

A House Financial Services Committee aide said that the bill is meant to restart discussions with Democratic lawmakers and the White House over how to regulate stablecoins.

The Financial Stability Oversight Council proposed two measures that would enable the body to more easily designate nonbanks as systemically important, a move expected to revive Dodd-Frank era debates between Republicans and Democrats.

Sen. Sherrod Brown, D-Ohio, who leads the Senate Banking Committee, said the Federal Home Loan Banks should not be lenders of last resort to failing banks.

A former employee at the Consumer Financial Protection Bureau sent data on 256,000 consumers and dozens of companies to their personal email account.

Securities and Exchange Commission Chairman Gary Gensler emphasized the connection between the cryptocurrency market and the recent banking crisis in testimony on Capitol Hill. He seeks more resources to police crypto firms whose business model, he says, is "noncompliance."

The proposal marks a concession for Republicans, but it's designed more to start negotiations with the White House rather than pass the Democratic-controlled Senate.

The committee will consider draft legislation governing stablecoins at a hearing on Wednesday featuring New York Department of Financial Services Superintendent Adrienne Harris.