U.S. Senate Committee on Banking, Housing and Urban Affairs ranking member Warren and House Financial Services ranking member Waters press Federal Reserve’s Bowman to pursue penalties and bans for Silicon Valley Bank executives

Senator Elizabeth Warren, Ranking Member of the U.S. Senate Committee on Banking, Housing and Urban Affairs, and Representative Maxine Waters, Ranking Member of the House Financial Services Committee, sent a letter to Federal Reserve Vice Chair for Supervision Michelle Bowman seeking an update on the Federal Reserve’s investigation into Silicon Valley Bank (SVB) executives and urging swift enforcement action, including civil money penalties and industry bans. The lawmakers argued that SVB’s rapid growth from less than USD 60 billion in total assets in 2019 to USD 209 billion by end-2022, alongside a deposit base that was 94% uninsured at end-2022, reflected risks that were not adequately constrained following deregulatory changes they said Bowman supported. They contrasted the Federal Reserve’s lack of action with initial steps taken by the Federal Deposit Insurance Corporation in its role as receiver and noted that the Federal Reserve, as SVB’s primary federal regulator, has authority to impose civil money penalties for unsafe and unsound practices and other legal violations. The letter also cited analyses, including by the Federal Reserve and its Inspector General, that found deregulation under former Vice Chair for Supervision Randal Quarles contributed to SVB’s failure. The letter requests responses to questions on the Federal Reserve’s investigations into SVB and the unsafe practices of bank executives by March 24, 2026.