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House lawmakers tore into top U.S. bank regulators Wednesday, questioning their competency and saying examiners were asleep at the wheel, at a second day of congressional hearings this week about how Silicon Valley Bank and Signature Bank collapsed practically overnight on March 10 and March 12. "We need competent financial supervisors, but Congress can't legislate competence," House Financial Services chairman Rep. Patrick McHenry, R-N.C., told top officials at the Federal Reserve, Treasury and FDIC at the beginning the hearing. "The light touch cautions from the Fed to SVB management are clearly not what Congress intended for bank supervision," said Waters. Republican Rep. Bill Huizenga, Mich., demanded raw, confidential supervisory information about the banks, available to regulators ahead of the collapses. Members of the Republican majority House challenged many of the decisions made by regulators in the hours and days after SVB collapsed and Signature Bank followed 48 hours later.

The nation's top bank regulators will face tough questions for the first time Tuesday about how Silicon Valley Bank and Signature Bank collapsed practically overnight earlier this month. This allowed the FDIC to guarantee hundreds of billions of dollars in uninsured deposits at the banks, money that might otherwise have been wiped out. Both Republicans and Democrats on the 29-member panel questioned whether these deposit guarantees amounted to a government bailout for rich account holders. "One clear takeaway from recent events is that heavy reliance on uninsured deposits creates liquidity risks that are extremely difficult to manage," the FDIC's Gruenberg said in his written testimony. "Particularly in today's environment where money can flow out of institutions with incredible speed in response to news amplified through social media channels."

WASHINGTON — Treasury Secretary Janet Yellen sought to reassure markets and lawmakers on Thursday that the federal government is committed to protecting U.S. bank deposits following the failure of Silicon Valley Bank and Signature Bank over the weekend. "Our banking system remains sound and Americans can feel confident that their deposits will be there when they need them," Yellen said. Yellen has been at the center of emergency federal efforts this past week to return deposits to account holders at two failed banks, the California-based Silicon Valley Bank and the crypto-heavy Signature Bank, based in New York. "This week's actions demonstrate our resolute commitment to ensure that depositors' savings remain safe," Yellen told the senators. "I'm concerned about the precedent of guaranteeing all deposits and the market expectation moving forward," said Sen. Mike Crapo, R-Idaho.

WASHINGTON — U.S. House Republican leader Kevin McCarthy, R-Calif., lost a seventh vote for House speaker Thursday, despite conceding to several new demands from his far-right opponents. An eighth vote was expected, although there were few signs that McCarthy's fortunes would improve. "I think everyone in the conversation wants to find a solution," McCarthy said on his way into the House chamber for the vote. With 222 Republicans in the House, he can't afford to lose more than four votes. Ahead of Thursday's votes, Democratic Party leaders berated Republicans for the party's dysfunction, and emphasized the harm that going days without a House speaker was inflicting on the legislative branch and the nation.

The latest vote saw a core group of GOP holdouts nominate and vote for Florida Rep. Byron Donalds, a sophomore Republican lawmaker who on Tuesday had publicly shifted his support away from McCarthy. While the vote is still ongoing, enough Republicans have abandoned McCarthy to leave him shy of the 218 he needs to win the coveted seat. WASHINGTON — In the fourth vote in two days, Republican leader Kevin McCarthy, R-Calif., again failed to secure enough support to win the U.S. House speakership. House Minority Leader Kevin McCarthy (R-CA) is seen at the US Capitol in Washington, DC on December 21, 2022. Kevin McCarthy will do a good job, and maybe even a GREAT JOB – JUST WATCH!"

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