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☆ US senators demand documents from Meta over its handling of teen mental health
▼ + stars: | 2023-11-15 | by ( Brian Fung | ) edition.cnn.com time to read: +2 min

Washington CNN —A group of US senators is demanding that Meta CEO Mark Zuckerberg hand over troves of emails and documents that could show how the company handled the knowledge that its platforms could harm the mental health of teens. The company didn’t immediately respond to a request for comment on the letter. Meta spokesman Andy Stone said that the company is in touch with the members who signed the letter. The letter further accuses Meta of showing an “apparent willful disregard” for young people’s well-being, of “misrepresentations to Congress” and of “profiting from threats” to user safety. The letter requests a response by Nov. 30 and calls for Meta to provide its correspondence related to Bejar’s warnings to executives, as well as senior leaders’ own correspondence with Zuckerberg about proposed investments in user well-being.

Persons: Mark Zuckerberg, Zuckerberg, ”, Connecticut Democrat Richard Blumenthal, Tennessee Republican Marsha Blackburn, Dick Durbin, South Carolina Republican Lindsey Graham, South Carolina Republican Lindsey Graham ; Massachusetts Democrat Elizabeth Warren, Missouri Republican Josh Hawley, Meta, Arturo Bejar, Andrea Joy Campbell, didn’t, Andy Stone, people’s, ’ Organizations: Washington CNN, Facebook, Connecticut Democrat, Tennessee Republican, South Carolina Republican, South Carolina Republican Lindsey Graham ; Massachusetts Democrat, Missouri Republican, Meta Locations: Massachusetts, Connecticut, Tennessee, Illinois, South Carolina Republican Lindsey Graham ; Massachusetts, Missouri

Republicans and Democrats in Congress have pledged tighter oversight of banking regulators following the collapse of Silicon Valley Bank and Signature Bank. Some in Congress are concerned that the Federal Reserve's current inspector general is not independent enough to serve as a check on the central bank. Unlike the Pentagon and other big agencies, the Fed's internal IG, currently Mark Bialek, reports directly to the Fed board. Under the Senators' plans, the holder of the role would instead be appointed by the President and confirmed by the Senate. Specifically, they objected to having the IG's salary tied to the compensation of Fed officials who the IG is tasked with investigating.

Persons: Elizabeth Warren, Evelyn Hockstein, Rick Scott, Democrat Elizabeth Warren, Mark Bialek, Warren, Scott, Bialek, David Morgan, Costas Pitas, Paul Thomasch, Stephen Coates Organizations: Banking, Housing, Urban Affairs Committee, Capitol, REUTERS, WASHINGTON, Democrat, Reuters, Republicans, Democrats, Congress, Silicon Valley Bank, Signature Bank, Federal, Pentagon, Fed, Senators, Thomson Locations: Washington , U.S, Silicon, Congress

☆ Fed's watchdog defends work before Senate amid questions over his independence
▼ + stars: | 2023-05-17 | by ( Michael S. Derby | ) www.reuters.com time to read: +4 min

The Fed IG has faced particular heat over its investigation into the central bankers' trading activities. In addition, the Fed’s IG has yet to complete a hotly anticipated investigation into regional Fed leader trading even after news of that situation broke in September 2021. He said the fact that the report absolving Powell and Clarida was short on information was “intentional” due to the still-ongoing inquiry into regional Fed trading. “I absolutely agree that the allegations of improper trading and ethics violations are disturbing and they are alarming,” the Fed IG said. Leading the Senate panel, Democrat Elizabeth Warren blasted the incompleteness of the investigation and tied many of the IG’s problems to structural issues.

Fed Chairman Jerome Powell sought to reassure investors about the soundness of the banking system, saying that the management of Silicon Valley Bank "failed badly," but that the bank's collapse did not indicate wider weaknesses in the banking system. "These are not weaknesses that are running broadly through the banking system," he said, adding that the takeover of Credit Suisse seemed to have been a positive outcome. The Federal Open Market Committee policy statement also said the U.S. banking system is "sound and resilient." The much-anticipated rate cut by the Fed, which had delivered eight previous rate hikes in the past year, sought to balance the risk of rampant inflation with the threat of instability in the banking system. The banking sector has been in turmoil after California regulators on March 10 closed Silicon Valley Bank in the largest U.S. bank failure since the 2008 financial crisis.

The latest move to restore calm to restive regional bank stocks came as Pacific Western Bank (PACW.O), one of the regional lenders caught up in the market volatility, said it had raised $1.4 billion from investment firm Atlas SP Partners. While that deal brought some respite to battered banking stocks, First Republic (FRC.N) remains firmly in the spotlight. For now, the rescue of Credit Suisse appears to have calmed the worst fears of systemic contagion, boosting shares of European banks (.SX7P) and U.S. lenders (.SPXBK). Reuters Graphics Reuters Graphics'HEAD IN SAND'The wipeout of Credit Suisse's Additional Tier-1 (AT1) bondholders has sent shockwaves through bank debt markets. Seeking to boost confidence among investors rattled by its $3 billion Credit Suisse rescue, UBS said on Wednesday it would buy back 2.75 billion euros ($2.96 billion) worth of debt it issued less than week ago.

☆ Exclusive: Republican U.S. Senator Rick Scott, Democrat Warren unveil Fed oversight bill
▼ + stars: | 2023-03-22 | by ( David Morgan | ) www.reuters.com time to read: +4 min

Republican Rick Scott and Democrat Elizabeth Warren blamed the collapse of the two banks on regulatory failures at the U.S. central bank, which has operated up to now with an internal inspector general who reports to the Fed board. "Our legislation fixes that by establishing a presidentially-appointed, Senate-confirmed inspector general at the Fed, like every other major government agency," Scott said in a joint release with Warren. Warren said this month's banking upheavals "have underscored the urgent need for a truly independent inspector general to hold Fed officials accountable for any lapses or wrongdoing." She sits on both the Senate Banking Committee and the Senate Finance Committee, and chairs subcommittees of both panels. Reporting by David Morgan and Heather Timmons; Editing by Scott Malone and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ Silvergate pressed by senators after 'evasive' responses on FTX - Bloomberg Law
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +1 min

Jan 31 (Reuters) - U.S. senators have asked cryptocurrency-focused bank Silvergate Capital Corp (SI.N) if it knew about bankrupt exchange FTX's alleged misuse of customer funds after the lawmakers found the company's earlier responses "evasive", Bloomberg Law reported on Tuesday. The questions were asked in a letter sent to the bank by senators including Democrat Elizabeth Warren and Republicans Roger Marshall and John Kennedy, who questioned Silvergate about its ties to FTX, the report said. They said Silvergate in December had declined to fully answer related questions, citing restrictions on disclosing "confidential supervisory information", the report added. Earlier this month, Silvergate slashed its headcount by 40% and reported a net loss of $1 billion for the fourth quarter. Reporting by Niket Nishant in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

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