Senator Elizabeth Warren (D-MA) said Sunday on CBS’s “Face the Nation” that she did not have faith in San Francisco Federal Reserve President Mary Daly in wake of Silicon Valley Bank’s collapse.
Partial transcript as follows:
MARGARET BRENNAN: Let’s talk about that with the Fed and-and what the regulators are supposed to be doing with that oversight. There were already, you know, requirements and public disclosures here, and there were flashing red lights in December. SVB reported to the SEC, it had no interest rate hedges on its bond portfolio. In March, the San Francisco Fed this is publicly available, noted the banks in that district had the largest pace of decline and withdrawals in the country, perhaps due to higher exposure to accounts above $250,000. So this was already out there in the public space.
BRENNAN: Why didn’t the chief regulator in Silicon Valley area the San Francisco Federal Reserve Act here? Do you have confidence in its President Mary Daly?
WARREN: No, I do not. The Fed should have acted, but the San Francisco Fed and the Federal Reserve Bank. Remember the Federal Reserve Bank and Jerome Powell are ultimately responsible for the oversight and supervision of these banks. And they have made clear that they think their job is to lighten regulations on these banks. We’ve now seen the consequences.
BRENNAN: But these were regulations that were- that were being publicly reported. I mean, this was missing signals of what’s out there. Do you think then- what’s the consequence for regulators in San Francisco and Washington?
WARREN: So, look, this is the point I’ve been trying to make all along. Jerome Powell has said that all he wants to do is lighten regulations on the banks. I opposed him as Chairman of the Federal Reserve Bank precisely for that reason. I said he was a dangerous man to have in this position.
BRENNAN You-you opposed him when President Biden reappointed him as well, you-you opposed him consistently, I understand that–
WARREN: I opposed him both times.
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