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☆ Republicans request Fed and FDIC oversight records for failed Silicon Valley Bank and Signature Bank
▼ + stars: | 2023-03-20 | by ( Christina Wilkie | ) www.cnbc.com time to read: +2 min

The Federal Reserve also created a Bank Term Funding Program aimed at safeguarding institutions affected by the market instability of the bank failures. In the days following the collapse, reports have emerged indicating that Silicon Valley Bank ignored repeated warnings from bank regulators that the bank would be at risk of collapse in the event that interest rates rose quickly. In it, Brown suggested that responsibility for the bank failures lay in part with top executives at the failed banks. Brown also asked the regulators to "identify and close regulatory gaps, shortfalls, or failures by state or federal regulators that contributed to the banks' failures." He did not ask for the names of individual Fed or FDIC officials involved in supervising the banks.

☆ U.S. lawmakers to examine merits of higher FDIC bank deposit insurance cap
▼ + stars: | 2023-03-19 | by ( ) www.cnbc.com time to read: +3 min

"I think that lifting the FDIC insurance cap is a good move," Senator Elizabeth Warren, a Democrat, said on CBS's "Face The Nation" program, referring to the Federal Deposit Insurance Corporation's current $250,000 limit per depositor. "What I will do though, legislatively, and in an oversight function, is to determine whether or not we need to address the FDIC deposit level," McHenry told the same CBS program. During the financial crisis that erupted in 2008, the FDIC temporarily backstopped all deposits to safeguard smaller banks. Pressure on midsized and smaller banks from deposit outflows continued on Friday despite a move by several large banks to deposit $30 billion into First Republic Bank, an institution rocked by the failure of Silicon Valley Bank and Signature Bank. McHenry said he wanted to examine the trade-offs of higher deposit insurance limits, "the moral hazard of having more risk-taking in the financial sector, and also the impact it would have on community banks."

☆ U.S. lawmakers to examine merits of higher bank deposit insurance cap
▼ + stars: | 2023-03-19 | by ( David Lawder | ) www.reuters.com time to read: +4 min

[1/4] Signs explaining Federal Deposit Insurance Corporation (FDIC) and other banking policies are shown on the counter of a bank in Westminster, Colorado November 3, 2009. "I think that lifting the FDIC insurance cap is a good move," Senator Elizabeth Warren, a Democrat, said on CBS's "Face The Nation" program, referring to the Federal Deposit Insurance Corporation's current $250,000 limit per depositor. During the financial crisis that erupted in 2008, the FDIC temporarily backstopped all deposits to safeguard smaller banks. Pressure on midsized and smaller banks from deposit outflows continued on Friday despite a move by several large banks to deposit $30 billion into First Republic Bank (FRC.N), an institution rocked by the failure of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O). McHenry said he wanted to examine the trade-offs of higher deposit insurance limits, "the moral hazard of having more risk taking in the financial sector, and also the impact it would have on community banks."

☆ House committee calls Fed, FDIC officials to testify in its first hearing on bank failures
▼ + stars: | 2023-03-17 | by ( Chelsey Cox | ) www.cnbc.com time to read: +1 min

WASHINGTON — The House Financial Services Committee on Friday announced its first hearing on the failures of Silicon Valley Bank and Signature Bank. The announcement follows President Joe Biden's request to Congress on Friday to allow financial regulators more authority to claw back compensation from executives at failed banks. Committee Chairman Patrick McHenry, R-N.C., and Ranking Member Maxine Waters, D-Calif., said House Financial Services is "committed to getting to the bottom of the failures" of the banks. "As Chairman and Ranking Member, we take our oversight duties seriously. We will conduct this hearing without fear or favor to get the answers the American people deserve."

☆ U.S. House Financial Services chair urges confidence, says financial agencies acting within law
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +3 min

The FDIC is doing what the FDIC is supposed to do in conformance with the law," Representative Patrick McHenry told CNBC, adding Americans should "have confidence in their financial system." "You have the decisions of the institution, and you have decisions of the supervisors," the Republican committee chairman told Punchbowl late on Monday after briefing Republicans on the matter. His administration stepped in over the weekend to shore up the banks, with the FDIC taking over receivership. Biden also vowed new bank rules after regulations enacted after the 2008 financial crisis were rolled back under former Republican President Donald Trump. The panel's ranking Democrat, Maxine Waters, on Monday urged bipartisan work to ensure the stability of the financial system.

☆ U.S. House Financial Services chair to seek documents, hold hearing amid bank collapses -report
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, March 14 (Reuters) - The head of the U.S. House Financial Services Committee said he would request documents and hold a hearing after the collapse of two U.S. banks raised concerns about the banking sector and roiled world markets, according to a media report on Tuesday. McHenry spoke after briefing Republicans, who control the House of Representatives, about the weekend collapse of Silicon Valley Bank and Signature Bank, which continued to weigh on investors on Tuesday. "They currently have the tools, and they‘ve used them appropriately to resolve two banks," McHenry said. Biden also vowed new bank rules after regulations enacted after the 2008 financial crisis were rolled back under former Republican President Donald Trump. The panel's ranking Democrat, Maxine Waters, on Monday urged bipartisan work to ensure the stability of the financial system.

☆ FDIC sending clear message that bank accounts are safe in America, says Rep. Patrick McHenry
▼ + stars: | 2023-03-14 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFDIC sending clear message that bank accounts are safe in America, says Rep. Patrick McHenryRep. Patrick McHenry (R-N.C.) joins 'Squawk Box' to discuss if McHenry believes there's a guarantee for deposits in SVB, if there needs be legislation to put what's happened in writing and more.

☆ SVB collapse was driven by ‘the first Twitter fueled bank run’
▼ + stars: | 2023-03-14 | by ( Jennifer Korn | ) edition.cnn.com time to read: +4 min

New York CNN —The massive amount of customer withdrawals that led to the collapse of Silicon Valley Bank had all the hallmarks of an old-fashioned bank run, but with a new twist befitting the primary industry the bank served: much of it unfolded online. Customers withdrew $42 billion in a single day last week from Silicon Valley Bank, leaving the bank with $1 billion in negative cash balance, the company said in a regulatory filing. “It was the speed, fueled by zero distribution costs for both rumors and withdrawals, that was so destabilizing.”Silicon Valley Bank was arguably uniquely susceptible to those factors given its tech-focused customer base. The next day, the US Federal Deposit Insurance Corporation stepped in and took control of the bank, which only added to the viral panic on Twitter. “THAT IS THE PROPER REACTION.”Hours later, the Biden administration stepped in and guaranteed the bank’s customers would have access to all their money starting Monday.

☆ The Fed has to be laser-focused on its job number one, which is price stability: Rep. McHenry
▼ + stars: | 2023-03-08 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Fed has to be laser-focused on its job number one, which is price stability: Rep. McHenryNorth Carolina Rep. Patrick McHenry, Financial Services Committee chairman, joins 'Squawk Box' to discuss what he made of Powell's testimony yesterday, how inflation got to where it is now, and more.

"We have not made any decision," Powell said, but will be looking closely at upcoming jobs data on Friday and inflation data next week in deciding whether rate hikes need to shift back into a higher gear. Recent inflation data was worse than expected, and revisions to prior months showed the Fed had made less progress than expected in returning inflation to its 2% target from current levels that are more than double that. At the margins, however, some of the data did move in ways consistent with the softer job market the Fed hopes will develop. In their last set of projections, in mid-December, the median estimate of the high point of the Fed's benchmark overnight interest rate was between 5.00% and 5.25%, versus the current 4.50%-4.75% range. Reporting by Howard Schneider, Ann Saphir and Lindsay Dunsmuir; Writing by Dan Burns and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

☆ The fate of a post-2008 watchdog meant to protect Americans from another financial crisis is in the hands of a conservative Supreme Court
▼ + stars: | 2023-02-27 | by ( Ayelet Sheffey | Jason Lalljee | ) www.businessinsider.com time to read: +4 min

The Supreme Court will take on a lower court's decision that the Consumer Financial Protection Bureau's funding structure is unconstitutional. CFPB was set up to prevent another 2008-like financial crisis and has cracked down on big banks and the student-loan industry. On Monday, the Supreme Court agreed to take a decision from the Fifth Circuit Court of Appeals, which ruled in October that the Consumer Financial Protection Bureau's (CFPB) funding structure is unconstitutional. The Supreme Court won't hear the case until next term, though, meaning a final decision isn't likely until the spring of 2024. Created in 2011 under former President Barack Obama, the CFPB was intended to protect Americans from another financial crisis following the 2008 recession.

☆ Elizabeth Warren urges the Supreme Court to strike down Trump-appointed judges' decision to imperil funding for a student-loan industry and consumer-rights watchdog
▼ + stars: | 2023-02-27 | by ( Jason Lalljee | Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Supreme Court will take on a lower court's decision that the Consumer Financial Protection Bureau's federal funding is unconstitutional. Senator Elizabeth Warren advocated for the Supreme Court to strike down that decision. "If the Supreme Court follows more than a century of law and historical precedent, it will strike down the Fifth Circuit's decision before it throws our financial markets and economy into chaos." McHenry, who now runs the House Financial Services Committee, has hinted at seeking stronger oversight for CFPB for months now. And that's on top of a longer context of Republicans challenging the CFPB's funding and decision making.

Prosecutors presented sufficient evidence to proceed with their case against Anderson Lee Aldrich on all charges filed in the Nov. 19 shooting rampage at Club Q club in Colorado Springs, the El Paso County district judge ruled. Besides multiple counts of first-degree murder, Aldrich faces dozens of counts of attempted murder and assault, as well as hate-crimes charges alleging the attack was motivated by prejudice against victims' sexual or gender identities. Thursday's ruling capped a two-day preliminary hearing in which prosecutors outlined their case for trying Aldrich on all charges. A hand-sketched map of Club Q was also found in a search of the defendant's home, Gasper said. Two patrons with military training subdued Aldrich and held the suspect until police arrived, according to the arrest warrant affidavit.

"I think that we have a very good candidate for the World Bank," French Finance Minister Bruno Le Maire said of Banga during a news conference at the G20 finance leaders meeting in India. The comments marked a turnabout from Tuesday, when Germany's international development minister, Svenja Schulze, who represents a different party in Germany's coalition government, said the next World Bank chief should be a woman. The G20 ministers meeting is being held on the outskirts of the Indian tech hub city of Bengaluru. 'UNIQUE SET OF SKILLS'The United States, the lender's dominant shareholder, has chosen every World Bank president since the founding of the institution at the end of World War Two. World Bank staff are bracing for Banga to make some management changes at the bank, emboldened by Yellen's repeated calls for "bolder and more imaginative" action by the bank, two bank sources told Reuters.

☆ Republicans seek records on SEC's climate proposal as part of push against ESG investing plans
▼ + stars: | 2023-02-22 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

Gensler recently announced that the agency is considering adjustments to the proposal, first introduced in March 2022, after pushback from investors. Gensler told CNBC's "Squawk Box" earlier this month that the proposal simply required a clear climate transition plan from public companies. Earlier this month, McHenry formed a Republican working group on environmental, social and governance, or ESG, plans in part to target the rule disclosure. ESG platforms broadly apply to taking into account the environmental and social implications of a company's decisions, and not just its financial performance, as part of investing decisions. Many House Republicans have criticized ESG plans — but some of them have received campaign contributions from the very financial firms they are targeting.

☆ Accused Colorado LGBTQ club shooter back in court for preliminary hearing
▼ + stars: | 2023-02-22 | by ( Keith Coffman | ) www.reuters.com time to read: +3 min

One of the men pistol-whipped Aldrich as others pummeled the accused assailant, leaving the suspect with multiple injuries that required hospitalization. Aldrich's lawyers have asserted in court filings that their client identifies as "non-binary" in gender and prefers them/they pronouns. At a previous court hearing, a defense lawyer intimated that Aldrich may have been in the club previously, including on the night of the massacre. El Paso County District Judge Michael McHenry was assigned to preside over the preliminary hearing, which was scheduled to run for three days, according to the court docket. The Q nightclub shooting is not the defendant's first brush with the law.

☆ GOP lawmakers vilify ESG moves at BlackRock, Vanguard but take their money nonetheless
▼ + stars: | 2023-02-21 | by ( Brian Schwartz | ) www.cnbc.com time to read: +9 min

But Republicans have vilified BlackRock, Vanguard Group and State Street for leading the push on Wall Street to promote clean energy and what GOP lawmakers often title "left-wing social priorities." Still, many Republican lawmakers received money from the very firms their party is criticizing. It was the third election cycle in a row that both lawmakers took donations from the firm's PAC. Rep. Ann Wagner, R-Mo., received $10,000 from BlackRock and a combined $6,500 from Vanguard and State Street in the 2022 cycle. Huizenga's spokesman Brian Patrick said the donations won't affect the lawmaker's position on ESG issues.

☆ SEC weighs making 'adjustments' to controversial climate risk disclosure rule, Chairman Gensler says
▼ + stars: | 2023-02-10 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

Gary Gensler, chairman of the Securities and Exchange Commission, at the SEC headquarters in Washington, on July 22, 2021. The Securities and Exchange Commission is considering easing a controversial climate risk disclosure rule it issued last year after receiving pushback from companies and investors. "Investors are making investments based on these disclosures," Gensler said. "The SEC's climate disclosure rule is a prime example of this overreach that would have a wide-ranging impact on hard-working Americans across all walks of life," McHenry said in a Feb. 3 statement. Gensler said the proposed disclosures asked for a straightforward climate transition plan from companies.

☆ Top House Republicans scrutinize SEC investigation of failed crypto exchange FTX
▼ + stars: | 2023-02-10 | by ( Chelsey Cox | ) www.cnbc.com time to read: +2 min

Rep. Patrick McHenry, a Republican of North Carolina and ranking member of the House Financial Services Committee, speaks during a hearing in Washington, D.C.Top House Republicans on Friday sent a letter to the Securities and Exchange Commission as Congress scrutinizes the agency's actions against Sam Bankman-Fried, the former CEO of failed cryptocurrency exchange FTX. Bankman-Fried was scheduled to testify before the committee on Dec. 13, a day after he was arrested by Bahamian officials. FTX filed for Chapter 11 bankruptcy and Bankman-Fried stepped down as its CEO in November. The committee's request comes a week after McHenry announced the panel will examine certain so-called overreaches by financial oversight agencies. The Financial Services Committee requested communications between the SEC's enforcement division, specifically its director, Gurbir Grewal; communications among Gensler's direct staff and records and communications between SEC and the Justice Department over the last few months by 5 p.m. on Feb. 23.

WASHINGTON—House Republicans held a pair of hearings Tuesday to weigh how best to counter Beijing’s economic and military power, including the Pentagon’s response to the suspected Chinese surveillance balloon shot down Saturday by the Air Force. China represents “the single greatest threat to America’s global standing,” said Rep. Patrick McHenry (R., N.C.) the chairman of the House Financial Services Committee, at the start of a hearing about China’s economic threats.

☆ Debt limit showdown: Financial Service Committee Chair on default risk
▼ + stars: | 2023-02-07 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDebt limit showdown: Financial Service Committee Chair on default riskRep. Patrick McHenry (R-N.C.) joins 'Squawk Box' to discuss the feeling of the Republican party, Congress' ability to get things done, and more.

That is a shift from previous budget negotiations, when Republicans suggested raising the retirement age and partially privatizing Medicare. Social Security accounted for 17% of federal spending in the 2021 fiscal year, while Medicare accounted for 13%, according to the nonpartisan Congressional Budget Office. That would leave another 11% of the federal budget off limits. That would force budget cuts if federal borrowing exceeded a set share of the economy, but he has not said what that limit should be. NO DEBT CEILING INCREASE AT ALLSome hardliners, such as Tim Burchett and Andy Biggs, have said they will vote against raising the debt ceiling, no matter what provisions are attached.

WASHINGTON — Republicans, newly empowered with a House majority, are demanding spending cuts as a price for lifting the debt ceiling and averting a catastrophic default on U.S. debt. Republicans are divided over whether Medicare and Social Security spending should be on the chopping block. Jose Luis Magana / APLuna said she wants to do it without tax increases or Social Security or Medicare cuts. The White House has vowed that Biden won’t grant concessions on the debt limit and that paying the country’s bills is non-negotiable. But I think we’ve got to also honor our commitment to Americans when it comes to Social Security and Medicare,” Garcia continued.

Share this -Link copiedMcCarthy elected speaker in 15th round McCarthy was elected House speaker Saturday shortly after midnight on the 15th ballot. Share this -Link copiedHouse reconvenes to hold 14th round of speaker votes The House has reconvened to begin the 14th round of speaker votes. Read the rest of the story, The House speaker election, in three charts. Share this -Link copiedHouse begins 13th round The House is beginning the 13th round of speaker votes. At least 14 House GOP flip to support McCarthy in twelfth speaker vote Jan. 6, 2023 01:52 Share this -Link copied

☆ Chaos in the House: McCarthy's plea, and begging for votes
▼ + stars: | 2023-01-07 | by ( Mary Clare Jalonick | ) www.cnbc.com time to read: +6 min

It was nearing midnight, and he had already lost 13 votes for speaker over four long days. U.S. Rep.-elect Matt Gaetz (R-FL) (L) talks to House Republican Leader Kevin McCarthy (R-CA) in the House Chamber during the fourth day of elections for Speaker of the House at the U.S. Capitol Building on January 06, 2023 in Washington, DC. Anna Moneymaker | Getty Images News | Getty ImagesGaetz, who had hurled personal insults at McCarthy just hours earlier on the House floor, said no. Anna Moneymaker | Getty Images NewsThe chaos on the House floor came exactly two years after the Jan. 6, 2021, Capitol insurrection. US Representative Kevin McCarthy (R-CA) speaks to US Representative Matt Gaetz (R-FL) in the House Chamber at the US Capitol in Washington, DC, on January 6, 2023.

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