Jayapal calls for government action on anniversary of Silicon Valley Bank collapse

Congressional Progressive Caucus Chairwoman Pramila Jayapal (D-Wash.) on the anniversary of the Silicon Valley Bank failure, which briefly raised concerns of an escalation of the crisis, called on the federal government to issue a statement on the anniversary of the Silicon Valley Bank failure, which briefly raised concerns of an escalating crisis. He called for action to be taken against “systemic failures.” .

“The failure of Silicon Valley Bank one year ago was the second largest bank failure in U.S. history,” Jayapal said in a statement Monday. “Although the bank’s wealthy depositors were repaid in full almost immediately, the systemic flaws that caused the collapse in the first place remain unaddressed.”

“This anniversary is an opportunity to get back on track across the federal government,” she added.

Silicon Valley Bank was the first of several mid-sized regional banks to fail in quick succession last March, raising concerns about the potential for spillover into the banking system.

In the wake of the bank failures, Democrats criticized the 2018 rollback of parts of Dodd-Frank, which exempted most small and medium-sized banks from the law’s strict rules.

Jayapal appeared to touch on this point again on Monday, saying that the Silicon Valley bank’s failure was “the result of a 2018 rampage by bank lobbyists who sought to circumvent basic oversight, transparency, and financial stability in favor of profits.” “a predictable and direct result of effort.”

He also urges the Senate to pass legislation that would allow regulators to recover compensation from executives at failed banks, while also urging federal regulators to tighten capital requirements for banks and strengthen financial companies’ It called for curbing incentive-based compensation arrangements.

“Progressives will continue to demand that the rules of the rigged economy be rewritten so that working families can safely bank their money and bank executives are held accountable for their reckless behavior and profiteering.” ” said Jayapal.