Senators distinguish failed banks from rest of industry

Senate Banking Committee leaders differentiated recently failed financial institutions from the broader banking industry during a committee hearing on holding executives accountable.

Thursday’s Hearing: During the hearing, Chairman Sherrod Brown (D-Ohio) said that while Banking 101 is boring, Silicon Valley Bank and Signature Bank of New York failed to manage the risks associated with their business model and investments. Ranking Member Tim Scott (R-S.C.) said these were not typical banks, citing the failures of executives and regulators to mitigate risks.

On Deck: The Senate panel and the House Financial Services Committee have additional hearings starting next week on the failures, with banking executives and regulators scheduled to testify.

Industry Differentiation: In a recent blog post and video to community bankers, ICBA President and CEO Rebeca Romero Rainey said round-the-clock media outreach, the ICBA National Campaign, and focused advocacy efforts are helping to differentiate community banks from larger financial institutions among policymakers and the public.