Warren Calls On Powell To Recuse Himself From Fed’s SVB Review
Senator Elizabeth Warren called on Federal Reserve Chairman Jerome Powell to recuse himself from the Fed’s review of the failure of the Silicon Valley Bank, the biggest collapse of a lender in more than a decade.
(Bloomberg) -- Senator Elizabeth Warren called on Federal Reserve Chairman Jerome Powell to recuse himself from the Fed’s review of the failure of the Silicon Valley Bank, the biggest collapse of a lender in more than a decade.
“Fed Chair Powell’s actions to allow big banks like Silicon Valley Bank to boost their profits by loading up on risk directly contributed to these bank failures,” Warren, a Democrat from Massachusetts, said in a statement Tuesday. “For the Fed’s inquiry to have credibility, Powell must publicly and immediately recuse himself from this internal review.”
The Fed on Monday announced it is launching an internal review of its supervision and regulation of Silicon Valley Bank, led by Vice Chair for Supervision Michael Barr. The results are due for release by May 1.
“It’s appropriate for Vice Chair for Supervision Barr to have the independence necessary to do his job,” Warren said.
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