Banking regulators to face tough questions from US Congress following collapses

Lawmakers aim to determine how Silicon Valley Bank and Signature Bank failed, sparking fears of financial crisis

Lawmakers are set to grill federal banking regulators this morning in the first Congressional hearing on the collapse of Silicon Valley Bank (SVB) and Signature Bank.

The Senate’s banking committee will be the first to question officials on federal oversight of SVB, which was taken over by the federal government earlier this month after a severe bank run depleted its reserve. The collapse of the bank – the biggest bank failure since the 2008 financial crisis – has sparked wider fears about the soundness of the banking sector.