Liz Warren, JD Vance Join Forces to Punish Execs of Failed Banks

Democratic Massachusetts Sen. Elizabeth Warren and Republican Ohio Sen. JD Vance are uniting to introduce legislation announced Thursday to reduce the risks of large bank failures.

The Failed Bank Executives Clawback Act would propose harsher penalties for failed bank executives, which serves as a bipartisan response to the collapse of Silicon Valley Bank (SVB) in early March, according to Warren’s office. The proposed legislation would require the Federal Deposit Insurance Corporation (FDIC) to recover some or all of executive payments from the three years prior to their bank’s failure, covering larger banks with more than $10 billion in assets.

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New Bank Fees to Cover Bailouts Could Be Passed on to Customers, Experts Say

The Federal Deposit Insurance Corporation (FDIC) announced a proposal on Thursday to charge new fees to replenish funds spent bailing out Silicon Valley Bank (SVB) and Signature Bank depositors in March that will cost Americans, according to experts who spoke to the Daily Caller News Foundation.

Under the proposal announced at the FDIC Board of Directors Meeting, the regulator would charge special assessment fees to an estimated 113 banks, mostly those with over $50 billion in assets and none under $5 billion in assets. The banks will pass the costs on to their customers, according to economists who spoke to the DCNF.

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FDIC to Slap Banks with New Fees to Cover Bailout Losses: Report

The Federal Deposit Insurance Corporation (FDIC) plans to release a proposal to replenish funds spent bailing out depositors of Silicon Valley Bank (SVB) and Signature Bank in March by charging fees to banks with over $10 billion in assets, according to people familiar with the matter who spoke to Bloomberg.

The smallest lenders with under $10 billion in assets would be exempt from these fees, according to the sources who spoke to Bloomberg. There were over 4,000 banks beneath that threshold at the end of 2022; however, there were 145 banks between $10 billion and $250 billion in assets, according to FDIC data.

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Commentary: Another California Bank Fails After $100 Billion Run on Deposits and Rising Interest Rates Forces First Republic into FDIC Receivership

The Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation put the $229.1 billion California-based First Republic Bank into receivership today on May 1, while the FDIC also entered into a “purchase and assumption agreement” with JP Morgan-Chase Bank for the nation’s largest bank to assume First Republic’s assets as well as its $103.9 billion of deposits.

Another one bites the dust.

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Federal Regulators Seize, Sell Major Bank to JPMorgan Chase

Federal regulators took ownership of the First Republic Bank and sold it to JPMorgan Chase on Monday, marking the second-largest bank failure in U.S. history.

First Republic was the 14th largest commercial bank in the country, according to the Federal Reserve Board, and the third bank to fail in the past several months following the collapse of Silicon Valley Bank and Signature Bank. Banking giant JPMorgan Chase acquired the vast majority of the failed lender’s assets and all of its deposits from the Federal Deposit Insurance Corporation (FDIC), according to a JPMorgan Chase press release.

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Regulators Knew Silicon Valley Bank Was in Trouble Since 2021, Did Not Step In

A closer look at the months leading up to the collapse of Silicon Valley Bank, the second-largest bank collapse in history, shows that regulators saw the warning signs since last year but did not step in.

SVB’s collapse sent shockwaves through the markets, destabilized the economy, and raised fears of a domino effect of other banks. Seemingly backing those fears, other banks have recently collapsed as well.

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Arizona U.S. Sen. Mark Kelly’s Support for Censoring Viewpoints on Social Media Is Taken Out of Context: Spox

During a Zoom call this past week with federal government finance officials, Senator Mark Kelly (D-AZ) called for censorship of unfavorable remarks on social media. He was referring to posts raising alarm about the financial stableness of banks after the recent failures of Silicon Valley Bank and Signature Bank, which resulted in long lines of customers attempting to take their money out and the Biden administration stepping in to guarantee deposits of over $250,000, amounts the law doesn’t insure. 

Legal scholar Jonathan Turley, a professor at George Washington University, expressed his concern in an op-ed for The New York Post titled “Censorship addicts: Democrats seek to squelch speech on banks.” He said, “Rather than convince citizens that their deposits are safe, it is easier to just silence anyone who disagrees with you. So now ‘the expense’ of free speech is too high if it might undermine faith in our banks’ stability.”

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Florida Rep. Kat Cammack Says There Should Never Be Another Bank Bailout

Florida GOP Rep. Kat Cammack says that there should not be a bank bailout after the recent bank failures because ultimately, the price will fall on the American people. 

“There should absolutely never be a bank bailout ever again,” Cammack said on the “John Solomon Reports” podcast. “We saw the failures of that years ago and now we’re staring down the barrel of another meltdown and contagion because there’s poor management.”

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Janet Yellen Says More Bank Bailouts Could Be on the Horizon

Treasury Secretary Janet Yellen said in remarks Tuesday that regulators may ensure all deposits at more banks following the Silicon Valley Bank (SVB) and Signature Bank depositor bailouts.

Yellen said the bailouts were essential to safeguard the U.S. banking system in prepared remarks at the American Bankers Association Tuesday, referencing the Federal Reserve’s actions in insuring the deposits of SVB’s customers.

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As Losses Mounted, Silicon Valley Bank Doubled Down on Woke Investments and Left-Wing Rhetoric

Long before its epic collapse, Silicon Valley Bank (SVB) was a darling of the left. It allied in cash and manpower with a liberal nonprofit run by California Gov. Gavin Newsom’s wife and fully embraced the environmental, social and governance (ESG) platform now being banned in some red states, while celebrating its executives’ involvement in the LGBTQ+ movement.

As SVB’s investment failures mounted, the bank doubled down on its ideological commitments by pledging $5 billion in new green tech outlays, despite signs of rising interest rates negatively impacting that sector. Some institutional investors also began to raise concerns about the overall balance sheet.

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Biden Admin Shot Down Purchase Attempts for Failed Bank, Former Trump Official Says

A former economic adviser to former President Donald Trump said Monday that the Federal Deposit Insurance Corporation (FDIC) prevented several efforts to purchase Silicon Valley Bank. Federal regulators shut down Silicon Valley Bank Friday after its stock price collapsed and customers began a bank run following the financial institution’s disclosure of a $1.8 billion loss on asset sales due to high interest rates, CNBC reported. The Federal Deposit Insurance Corporation (FDIC) also shut down Signature Bank Sunday, citing “systemic risk,” CNBC reported separately.

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‘Corporate Bailouts Must End’: 2024 GOP Candidates Weigh In On Silicon Valley Bank’s Collapse

The collapse of Silicon Valley Bank (SVB) has sparked comments from 2024 GOP candidates and hopefuls about why the bank failed and what the government should do in its wake.

Declared candidates, businessman Vivek Ramaswamy, former South Carolina Gov. Nikki Haley and former President Donald Trump, as well as contender Florida Gov. Ron DeSantis, have spoken out about what might have led to SVB’s collapse and against government bailouts. The Federal Deposit Insurance Corporation (FDIC) took control of SVB after its Friday shut down when their stock plummeted following mass withdrawals.

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