Claire Williams

Federal Reserve Vice Chairman for Supervision Michael Barr said that regulators and bank management failures contributed to the bank collapses, but insisted rescue of uninsured deposits was warranted.

The Federal Reserve's top regulator told the Senate Banking Committee that new standards are needed for banks with more than $100 billion in assets — standards that the Fed has broad discretion to rewrite.

Federal Deposit Insurance Corp. Chairman Martin Gruenberg said in prepared testimony that the agency is looking at adjusting capital treatment for unrealized losses and resolution requirements for midsize banks.

A long-dormant executive compensation rule required by Dodd-Frank is a more promising means of achieving President Biden's call for consequences for the executives of failed banks than legislation, experts say.

House Financial Services Committee Chairman Patrick McHenry, R-N.C., and Rep. French Hill, R-Ark., asked Treasury Secretary Janet Yellen how a systemic risk determination was made on Silicon Valley Bank and Signature Bank.

The Senate Banking Committee Chairman Sen. Sherrod Brown will introduce legislation soon along the lines of President Joe Biden's framework for executive compensation outlined last week.

Rep. Patrick McHenry, R-N.C., the chairman of the House Financial Services Committee, said that expanding deposit insurance could have "serious consequences."

Sen. Sherrod Brown, D-Ohio, chairman of the Senate Banking Committee, told bankers not to lobby for weaker regulation in the wake of the Silicon Valley Bank and Signature Bank failures.

The Senate Banking Committee will host top Treasury, Federal Reserve and Federal Deposit Insurance Corp. officials March 28, one day before an identical hearing at the House Financial Services Committee.

The incentive structures for both banks and large, sophisticated depositors have changed because of federal regulators' decision to guarantee the uninsured deposits of Silicon Valley Bank and Signature Bank.

The Federal Deposit Insurance Corp. says it has extended the deadline for bids on Silicon Valley Bank, will break the bank into two parts for sale and will allow nonbanks to bid on asset portfolios.

Flagstar Bank, a subsidiary of New York Community Bancorp, will buy most of failed Signature Bank, but it's not taking Singature's digital-assets business as part of the deal.

President Biden asked that Congress pass measures that would expand the Federal Deposit Insurance Corp.'s ability to claw back compensation from the executives of failed banks, among other measures.

Treasury Secretary Janet Yellen took the first step of walking back an implicit guarantee by the U.S. government that other banks would see their depositors fully backstopped should the bank fail.

Sen. Sherrod Brown, chairman of the Senate Banking Committee, said in a letter to regulators that they should consider the role of social-media-led coordination among depositors.

The Arkansas congressman, a leading Republican on the House Financial Services Committee, said while he doesn't believe blanket expanding deposit insurance is warranted, different premium structures for covering deposits would be "worthwhile."

Maxine Waters, the top Democrat on the House Financial Services Committee, says she's confident some of the issues surrounding the failures of Silicon Valley Bank and Signature Bank will require legislation.

Sen. Elizabeth Warren, D-Mass., said that former Silicon Valley Bank CEO Greg Becker's assurances to Congress about the bank's safety in 2015 "now look nefarious."

Rep. Brad Sherman, D-Calif., a senior member of the House Financial Services Committee, said he's considering a bill to shore up regulation and oversight of medium-size banks.

President Joe Biden said that deposits at U.S. banks are safe following swift action from his administration's bank regulators.