On Monday’s broadcast of the Fox Business Network’s “Evening Edit,” Rep. Dan Meuser (R-PA) reacted to reporting from The Wall Street Journal that was confirmed by ABC News that the Federal Reserve knew of problems with Silicon Valley Bank (SVB) back in 2019 by pointing out that SVB doubled in size after these warnings and stating that Federal Reserve regulators failed to do their jobs.
Meuser said, “Well, and since those issuances, Silicon Valley Bank doubled in size. So, they ran a lot of risks, they were very mismanaged. The Fed Reserve out of San Francisco did a terrible job from a regulatory standpoint, so they really just didn’t do their jobs, and the level of management was terrible. So, what we have now is we have some investigations [that are] going to take place. Our Financial Services Committee will have the Vice Chair of the Fed, Michael Barr. We’ll have the chairman of the FDIC in next week and look to get answers. But the real reason for the answers, Liz, is so we don’t put blame on the well-managed banks…by these mismanaged banks, because they are outliers.”
The New York Times also reported that the Fed knew of problems with SVB prior to its collapse, which ABC also confirmed.
Follow Ian Hanchett on Twitter @IanHanchett
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